IMF Course on Macroeconomics of Climate Change

The IMF’s course on Macroeconomics of Climate Change (MCC) was delivered at the JVI in December 2024. There were 29 participants coming from 19 countries. Participants were officials working in central banks; ministries of finance, planning, and environment; and statistical offices. 

This course provided an overview of the science and economic costs of climate change, discussed policy options for adaptation and mitigation (including pricing carbon emissions and removing of fossil fuel subsidies), and analyzed challenges and opportunities related to transitioning to greener economic models. The course also aimed to increase the participants’ competency in working with climate data to analyze the macroeconomic impact of climate change issues.

The course comprised of 10 lectures, 6 workshops, and an interactive group project. Lectures introduced the basic concepts of climate change topics and workshops offered the participants an opportunity to apply the concepts and think about the design of reform strategies, often drawing from country case studies. The hands-on workshops have focused on climate change indicators, the impact of carbon taxes on carbon emissions and GDP, case studies on country policies, climate-related risk assessment in the financial system, climate finance, and climate risks and debt sustainability. At the end of the course, the participants presented the group projects that they prepared jointly during the duration of the course, demonstrating the effectiveness of the course in enabling the participants to use the newly acquired knowledge and conduct country-specific macroeconomic analysis of climate-related issues.

With a view to highlighting regional climate policy priorities, the course also featured a guest lecture by the World Bank on its recently published Country Climate and Development Report for Western Balkans 6 – Macro and Growth. The lecture overviewed the World Bank’s macro modeling strategy for mitigation and adaptation, providing assessment on damages and investment needs particularly for the Western Balkans countries under various climate scenarios.

The participants appreciated the course for its design, content, and delivery; and they expressed that they were satisfied with the course and provided positive feedback citing the “comprehensive and insightful exploration of the macroeconomic aspects of climate change”. They found the content highly relevant to their work, and found the materials, discussions, and case studies to be “engaging and thought-provoking”. The participants also indicated a strong intent to apply the course content to enhance decision-making, policy formulation, and strategic planning related to climate change within their respective roles and institutions.

Tolga Tiryaki, Senior Economist, Institute for Capacity Development, IMF