Past Event

Conference on Climate Fiscal Risks – What, Why and How?

. The conference convened senior officials on macro-fiscal policy, climate fiscal risk assessments, central banks, fiscal councils, the World Bank, OECD/Sigma, and the IMF. The objective was to generate and share knowledge on practical approaches to climate fiscal risks assessment, modeling, and reporting, and their integration into the budgetary process.

The progressive impact of a changing climate brings new challenges for public finances and macro-fiscal sustainability. Physical risks, such as climate-related disasters, are increasing and have the potential to diminish the productivity of human, natural and social capital, thereby impeding economic growth and introducing direct and contingent fiscal liabilities. The potential impacts of transition risks have been made more real with the introduction of the EU's Carbon Border Adjustment Mechanism, with manufacturing sectors being particularly exposed due to their relatively high emissions intensity and trade exposure. Assessment of such risks is essential for climate risk management. 

A two-day conference on Climate Fiscal Risks – What, Why and How, organized with the support from the European Union Trust Fund on Strengthening Fiscal Governance in the Western Balkan countries, was held on February 24-25, 2025, in Vienna, Austria. The conference convened senior officials on macro-fiscal policy, climate fiscal risk assessments, central banks, fiscal councils, the World Bank, OECD/Sigma, and the IMF. The objective was to generate and share knowledge on practical approaches to climate fiscal risks assessment, modeling, and reporting, and their integration into the budgetary process. 

When: February 24-25, 2025

Where: Vienna, Austria, Praterstrasse 31/1, 1020

Time

Subject

Speakers

February 24, 2025, Monday

 

9:30-9:40

Introductory speech and welcome

Jasmin Chakeri, Practice Manager, Economic Policy, World Bank

9:40-10:10

Fiscal risks and their management – what and why

Rei Odawara, Senior Economist, World Bank

10:10-10:40

Fiscal risks monitoring toolkit

Jonas Manuel Frank, Regional PFM Adviser, IMF

10:40-10:55

Coffee break

10:55-11:25

Climate-related fiscal risks and fiscal sustainability nexus

Sanja Madzarevic Sujster, Senior Economist, World Bank

11:25-12:45

Climate impacts in the Western Balkans (the Western Balkans Climate and Development Report)

Megha Mukim, Senior Urban Economist, World Bank

Christos Kostopoulos, Lead Economist, World Bank

Discussion

13:00-14:00

Lunch Break

14:00-15:30

Panel on fiscal risks monitoring in the EU candidate countries

-        Prof. Anisa Kume, Albania

-        Dr. Aleksandra Nakjeva-Ruzhin, North Macedonia

-        Aleksandar Crnomarkovic, Serbia (online)

-        Shota Gunia, Georgia (online)

-        Klas Klaas, OECD SIGMA

Panel with Ministries of Finance and SIGMA (presenting views on the basis of the 2024 monitoring exercise)

Chair: Richard Record, Program Leader, World Bank

15:30-15:45

Coffee break

15:45-16:30

Managing fiscal risks in OECD countries and evolutions with climate risks monitoring

Klas Klaas, Regional Manager EU Enlargement, OECD/SIGMA

16:30-17:00

Discussion and Day 1 recap

World Bank

18:30

Dinner Café Ansari, Praterstrasse 15, Vienna

February 25, 2025, Tuesday

 

9:15-10:15

Assessment of fiscal impact of natural disasters – methodological approaches and example

Evie Calcutt, Senior Financial Sector Specialist, Disaster Financial Risk and Insurance, World Bank

10:15-10:30

Discussion

10:30-10:45

Coffee break

10:45-12:00

Climate Policy Assessment Tool - methodological approaches and example

Victor Mylonas, Consultant, Chief Economist Climate Team, World Bank

12:15-12:30

Discussion

12:30-13:30

Lunch Break

13:30-15:30

Climate modeling with Macro-Fiscal Structural Model (MFMod)

Charl Jooste, Senior Economist, Economic Policy Unit, World Bank (online)

15:30-15:45

Coffee break

15:45-16:00

Discussion

16:30-17:00

Way Forward and Conclusions of the Workshop

World Bank

Speakers’ bios

Date: February 24 - 25, 2025 ET

Location: Vienna, Austria, Praterstrasse 31/1, 1020