The Inter-American Development Bank (IDB) has published a new study that contains a review of the progress made by the countries of Latin America and the Caribbean (LAC) in incorporating climate action in the different areas of fiscal policy, based on a survey carried out in 2023 of 41 variables with publicly available information.

The main areas covered in the study include: i) status of national commitments related to climate change; ii) strategic planning and macrofiscal policy; iii) spending policy and management; iv) tax and incentive policy; v) debt management and financing; and vi) climate governance.

The main findings of this study are the following: i) the vast majority of LAC Finance Ministries show some progress in integrating climate action into fiscal policy/management, although very few do so in a comprehensive manner; ii) from a comparative perspective, the greatest advances are found in issues related to strategic planning, fiscal macroeconomic management, and income policy and management; iii) the least progress is observed in terms of financing policy and expenditure policy/management, and iv) the three LAC countries with the best performance are Chile, Colombia and Costa Rica, although even those have important climate fiscal policy reforms pending.