risk of macroeconomic or other shocks with the impact of a major climate-related natural disaster in a fiscal stress test.
StateAssetInsuranceScheme in Indonesia
Indonesia’s asset management policies and practices address climate-related risks. The country has put in place a State Asset Insurance Policy program to insure public assets against climate and disaster risks, in the context of the National Disaster Risk Financing and Insurance strategy (DFRI). In 2019 the government introduced a state building insurance scheme, as the first phase of the
THE CLIMATE-PIMA FRAMEWORK
B. Overview of the Climate PIMA
C. Detailed Design of the C-PIMA Module
LESSONS FROM PILOTS AND DESK ASSESSMENTS
A Key Findings
B. Observations and Lessons Learned
NEXT STEPS AND RESOURCES
1. Synergies Between Climate PIMA and Other Climate PFM and Macroeconomic Tools
2. The Cost of Green and Resilient Infrastructure
3. Designing Intergovernmental Fiscal Transfers to Support Subnational Climate Actions
4. StateAssetInsuranceScheme in Indonesia
5. Climate-Aware Public
Countries have committed, through the Paris Agreement and the Sustainable Development Goals (SDGs), to pursue climate targets and policies that would limit global temperature rise to well below 2 degrees Celsius, compared to pre-industrial levels. A shift toward green public investment will help to mitigate greenhouse gas (GHG) emissions. In addition, substantial public investment will be necessary to build public infrastructure that makes economies more resilient to climate change and related natural disasters. Climate change mitigation and adaptation challenges thus compound preexisting needs for public investment to foster the economic recovery from the pandemic and to meet the SDGs in a broader range of areas, often in a context of limited fiscal space. Against this backdrop, a priority for all countries is to manage their public investment efficiently and effectively. To help countries improve the institutions and processes for infrastructure governance (the planning, allocation, and implementation of public investment), the IMF developed in 2015 the Public Investment Management Assessment (PIMA), which has already been applied in over 70 countries. However, the current PIMA does not provide a sufficiently tailored assessment of how public investment management can support climate change mitigation and adaptation. To fill this gap, this paper introduces a new module to the to the current Public Investment Management Assessment (PIMA) framework, the “Climate-PIMA” (C-PIMA), whose goal is to help governments identify potential improvements in public investment institutions and processes to build low-carbon and climate-resilient infrastructure.