IMF Managing Director Kristalina Georgieva said the Fund’s growing engagement on climate issues has already delivered value to member countries. Georgieva said recent evaluation findings show progress in incorporating climate considerations into key areas such as economic surveillance, lending programmes and technical assistance.
The independent evaluation found that the IMF has made strides in embedding climate-related risks into its core operations, including the development of new financing tools and more tailored policy advice. These measures are intended to help countries manage climate shocks and strengthen resilience.
A central recommendation of the review is for the IMF to more clearly assess the macroeconomic implications of climate change. This includes examining how climate risks affect growth, public finances and balance-of-payments stability, particularly in vulnerable economies.
The Fund also highlighted the importance of country-specific approaches to climate policy. For many African economies, this means prioritising adaptation strategies, such as strengthening infrastructure and protecting agricultural systems from extreme weather, rather than focusing only on emissions reduction.
The IMF pointed to its Resilience and Sustainability Facility as a key instrument for supporting countries undertaking climate-related reforms. The evaluation recommends enhancing the design of these programmes, extending their timelines and improving coordination with institutions such as the World Bank and regional development banks.
These measures are seen as particularly relevant for African economies, where fiscal constraints and exposure to climate shocks remain significant challenges. The IMF said stronger coordination between financing, policy advice and technical support is needed to maximise the effectiveness of climate interventions.
Another priority identified in the evaluation is the need to close data and capacity gaps. The IMF said strengthening national systems for managing climate-related data and policy implementation will be critical to improving outcomes. Closer integration of technical assistance with surveillance and lending activities is expected to support more effective planning and monitoring.
Despite progress, the IMF said its climate work is still evolving and requires continued investment and collaboration. The evaluation also noted that climate policy involves complex trade-offs, including balancing economic growth, social impacts and fiscal sustainability.
For African policymakers, the findings underscore the need to integrate climate risks more systematically into economic planning. With many countries facing increasing exposure to droughts, floods and other climate events, aligning climate and economic strategies is seen as essential for protecting growth and stability.
The IMF said it will develop a follow-up implementation plan, indicating that climate considerations will remain a central priority in global economic governance going forward.
–IMF/ChannelAfrica–
