About Us

Climate Action Peer Exchange (CAPE) is a forum for peer learning, knowledge sharing, and mutual advisory support. It brings together ministers and senior technical specialists from finance ministries across the world, as well as World Bank staff and other international experts, to discuss the fiscal challenges involved in implementing the Nationally Determined Contributions (NDCs) established under the 2015 Paris Agreement. CAPE is a contribution of the WBG to the NDC Partnership. 

Focus Area

CAPE has 6 key focus areas. Here you can explore various challenges and opportunities as well as good practices under each focus area.

Climate Change Fiscal Risk Assessments & Management

The adverse effects of climate change on the economy are likely large but difficult to predict and therefore they increase the chances that fiscal outcomes differ substantially from projections.…
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Climate Finance

Substantial financing for climate action is needed. Private and public finance have a complementing role in funding climate change mitigation and adaptation. Given the scarcity of public funds, most…
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Distribution, Competitiveness & Political Economy

Fiscal policies for climate change can affect the distribution of resources within a society and the competitiveness of low- and high-carbon sectors in the economy. This thematic area discusses these…
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Fiscal Instruments for Climate Policy

Climate change is expected to cause major shocks to the macro stability of most countries’ economies. The adoption of command & control and fiscal instruments can importantly contribute to the…
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Macroeconomics of Climate Change

Climate change and its policy responses cause both transitory and permanent supply shocks, some of which are gradual (e.g., reduced agricultural yields, impact of increased temperatures on…
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Public Financial Management

Public expenditure is a necessary element of low-carbon development strategies due to the existence of market failures that cannot be resolved with revenue side fiscal policies. Due to the scarcity…
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This is the quarterly updated CAPE event calendar. You can easily access the event summary of previous events and registration page for upcoming events (except for close-door events).

Knowledge Center

The CAPE Knowledge Center is a curation of publications, tools, and online resources for CAPE focus areas. You can click on one of the focus areas below to filter for all relevant resources.

Dominica: Tax Reform to Boost Climate Resilience

October 12, 2018
Dominica after Hurricane Irma
Dominica after hurricane. 

Dominica, a small-island state in the Caribbean, is among the countries most exposed to natural hazards. On September 18, 2017, Hurricane Maria hit Dominica with catastrophic effect. The Post-Disaster Needs Assessment concluded that Hurricane Maria resulted in total damages of US$931 million and losses of US$382 million, which amounts to 226 percent of 2016 GDP. The identified recovery needs for reconstruction and resilience interventions, incorporating the principle of resilience and ‘building back better’, amount to US$1.37 billion. Furthermore, Hurricane Maria struck while Dominica was still recovering from Hurricane Erika, which made landfall on August 27, 2015 and caused losses and damages of 97 percent of GDP.

In response, Prime Minister Roosevelt Skerrit has expressed “plans to make Dominica the first climate resilient nation in the world”. This includes through strengthening the resilience of Dominica’s physical infrastructure and natural environment, but also through building greater fiscal resilience, flexibility and ability to cope with climate events and shocks. On the fiscal resilience side, this includes: fiscal measures to better integrate sustainable development and climate adaptation strategies into development and budget planning processes; incorporating measures and instruments to better manage and cope with contingent and implicit liabilities arising from natural disaster events; fiscal and tax reforms that increase domestic revenues, but also achieve green growth objectives and help meet Dominica’s Nationally Determined Contribution (NDC); and reforms to increase the efficiency and effectiveness of social protection programs. The authorities have requested World Bank support on potential tax reforms to increase domestic revenue mobilization to further their NDC efforts and increase budget and fiscal resiliency. In response to this request, Climate Action Peer Exchange (CAPE) is funding the preparation of a report on how to reform existing fiscal policies on fuel, vehicles and durables and the existing environmental surcharge system; electricity and waste pricing, and fiscal policy for encouraging reforestation.