Details
- Identification
- Discussion Paper 224
- Publication date
- 15 July 2025
- Authors
- Margaux Salmon-Genel | Directorate-General for Economic and Financial Affairs
Description
This paper supports reflection on how to approach assessments of the macro-fiscal risks from climate change, in light of the 2024 climate-related amendments to Directive 2011/85/EU on Requirements for Budgetary Frameworks of the Member States. It outlines key concepts, explores possible methodological approaches and available tools, and presents country practices that illustrate emerging approaches across Europe.
Highlights
- As the economic and fiscal costs of climate change are projected to rise and transition efforts accelerate, it becomes essential to assess the macro-fiscal impacts of climate change and to integrate them into national budgetary frameworks.
- The 2024 amendments to Directive 2011/85/EU on Requirements for Budgetary Frameworks of the Member States introduce new requirements for Member States to assess and disclose information on climate-related fiscal risks.
- This paper supports reflection on how to approach assessments of the macro-fiscal risks from climate change in light of these amendments by outlining key concepts, exploring possible methodologies and available tools, and presenting country practices across Europe. It also proposes a gradual approach to conducting assessments, helping identify areas for further development.
- While analytical progress is evident, the integration of climate risks into forecasts and national budgets is still at an early stage.
- Strengthening data collection, enhancing accessibility and use of existing tools, and building institutional capacity are essential to embed climate risks into fiscal planning.
Information and identifiers
Discussion Paper 224. July 2025. Brussels. PDF 170 pp. Tab. Graph. Bibliogr. Free.
KC-01-25-018-EN-N (online)
ISBN 978-92-68-23678-9 (online)
ISSN 2443-8030 (online)
doi:10.2765/8918557 (online)
JEL classification: E61, E62, H50.
Disclaimer
European Economy Discussion Papers are written by the staff of the European Commission’s Directorate-General for Economic and Financial Affairs, or by experts working in association with them, to inform discussion on economic policy and to stimulate debate. The views expressed in this document are solely those of the author(s) and do not necessarily represent the official views of the European Commission.
