The IMF and Climate Change

In response to rising macroeconomic risks and strong member demand, the IMF initiated a new approach to the integration of climate-related issues across its surveillance, lending, and capacity development activities with the adoption of its climate strategy in 2021 and the establishment of the Resilience and Sustainability Trust in 2022. This evaluation assesses the first four years of that approach and finds that the IMF’s climate related work has brought significant value added for members, strengthened the Fund’s analyses of the climate policy and macro financial stability nexus, and positioned the Fund as a key institution in this domain while remaining within its mandate. Drawing on extensive analysis and consultations, the evaluation highlights the accelerated institutional learning process undergone and the challenges encountered, including those related to strategic clarity and communications, operational guidance, resourcing, and changing priorities and incentives. The report proposes ways to improve effectiveness and coherence, while informing broader decisions on the future engagement of the IMF on climate-related issues.