The Inter-American Development Bank (IDB) has published a new document that aims to provide information, policy recommendations and lessons learned based on regional and international experiences regarding the design and implementation of financial strategies against climate change, and how they can improve their effectiveness for the future. Climate financial strategies are instruments used by countries to dimension fiscal needs and guide public and private finance to achieve mitigation goals and face adaptation challenges.

Among the key conclusions, the authors highlight the need to develop data-based diagnoses, include general and specific measures with realistic objectives, and evaluate institutional capabilities for implementation, as well as carry out consultations with relevant actors, including the financial sector, in the development of financing strategies. Furthermore, they highlight how essential it is to ensure the coherence and quality of the measures and prioritize strategic instruments, and introduce an accountability mechanism and constant results and performance monitoring in the process of strategy implementation.

The analysis is part of the Work Plan from the Regional Climate Change Platform of Economy and Finance Ministries, a space for exchanging knowledge in the formulation of fiscal policies to face climate change consequences.