The application of green fiscal policies to address climate change could lead to environmental benefits, including environmental revenues that may be used for broader fiscal reforms . As the USA aims at becoming carbon neutral by 2050, fiscal policies at the national, sectoral and international level can help to achieve this goal, along with investment, regulatory and technology policies . The effectiveness of green fiscal policies are through their fiscal potential, opportunities for efficiency gains, distributional and macroeconomic impacts, and their political economy implications . The International Monetary Fund argues public support for green policies may rise in response to the COVID-19 crisis . For example, Leibenluft  argues that investments to combat climate change should be an important component of the efforts to rebuild the economy in the wake of COVID-19. Such action is justified not only on ecological and social welfare grounds, but from a long-term fiscal perspective. For example, climate change impacts and/or efforts to adapt to those impacts drive increased spending in areas such as public health and disaster mitigation or response. Preventive and corrective actions would strengthen resilience to shocks and alleviate the financial constraints they create, particularly for small countries . For example, Mallucci  found that natural disasters exacerbate fiscal vulnerabilities and trigger sovereign defaults in seven Caribbean countries. Ryota  illustrates how to include natural disaster and climate change in a fiscal policy framework to developing countries.
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report