With colleagues at the International Monetary Fund, we published a new policy paper "Key Challenges Faced by Fossil Fuel Exporters during the Energy Transition."
COP28 delivered a historic call to transition away from fossil fuels in energy systems. The path of the energy transition, however, remains highly uncertain and will pose significant macroeconomic headwinds for fossil fuel exporting countries. In this Staff Climate Note, we explore the factors that will determine country-level impact, including the carbon intensity of fossil fuel export, extraction costs, and country characteristics, and discuss the macroeconomic implications of managing the energy transition.
