Climate webinar #8: Fiscal Risks and Climate Change in the United Kingdom

Friday, January 21, 2022 at 13:00-14:15 Vienna time (CET)

Mr. James Ebdon, UK Office of Budget Responsibility

Mr. Ruy Lama, Senior Economist, IMF

This eighth webinar of the JVI series on climate change economics will look at the impact of climate change on fiscal sustainability. Quantification of climate-related fiscal risks is a relatively new field of economic analysis complicated by numerous uncertainties regarding the speed of policy actions and climate change. James Ebdon of the Office of Budget Responsibility (OBR) of the United Kingdom will present the chapter of Fiscal Risks Report of July 2021 on climate change. In this analysis, the OBR quantifies the impact of climate change on UK debt levels via several channels: additional public spending on climate change mitigation, losses in tax income due to reduced fossil fuel consumption, additional carbon tax revenues and the effect of a lower GDP. The approaches used in the analysis also help to shed some light on the sensitivities of public debt path to different scenarios, including delayed policy action. The presented analysis can serve as a blueprint for the assessment of fiscal risks related to climate change in JVI countries.

The JVI focus on climate change

If greenhouse gas emissions continue unabated, global temperatures will keep on rising at an unprecedented pace, with catastrophic implications for lives and livelihoods worldwide. Economic policy has a pivotal role to play in changing the ways we produce and consume in order to slow climate change.

Countries in the JVI region will not be spared the economic costs of rising temperatures nor the difficult task of transforming their economies within the next thirty years to drastically reduce greenhouse gas emissions. Yet, this transformation also holds opportunities for countries in the region, such as public investment-triggered growth, good quality green jobs, and better health from reduced air pollution.

In this context, the JVI offers two courses on the economics of climate change. The first one, “Climate Change and Green Finance”, coordinated by the Austrian Federal Ministry of Finance and the Austrian National Bank, will take place June 20-24, 2022. The second one, “Climate Change Economics”, coordinated by the JVI faculty, will take place September 12-16, 2022. We encourage everyone to apply!

Starting in 2021, the JVI has organized a webinar series on selected issues in climate change economics. In discussion with experts from JVI partner organizations, academia, central banks, and other institutions, we will shed light on topics such as the political economy of climate change, carbon taxation, the role of financial sector oversight, and macroeconomic modelling – with a special focus on the JVI region.

The webinar will be held in English, with simultaneous translation into Russian.

Participants are encouraged to ask written questions to the presenters using the webinar’s Q&A feature.

To participate in the webinar please sign up here.

A list of JVI webinars on topical issues in the field of financial stability, fiscal policy, and macroeconomics can be found here.

The schedule of JVI courses – including virtual courses – can be found here.

We look forward to continuing our engagement with you!

Hervé Joly, Director (JVI)

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