World Bank2024-02-082024-02-082024-02-08https://openknowledge.worldbank.org/handle/10986/41017The impacts of climate change are significantly affecting the Europe and Central Asia (ECA) region, with high carbon emissions due to its heavy reliance on fossil fuels and energy-intensive economies. To transition to clean energy, substantial private and public investment and diverse policies are necessary. Pricing reforms are necessary to incentivize the private sector to adopt decarbonization measures. Tax instruments are also needed. Regulatory policies, like mandating energy efficiency and improving appliance standards, will contribute to achieving emission reduction targets. Structural policies that strengthen macroeconomic fundamentals, deepen capital markets, and improve governance are crucial. Additionally, social policies to alleviate energy poverty are essential. Tailored policies based on each country's conditions are necessary to ensure sustainable and greener long-term growth in the ECA region. These policies should consider implementation costs and the tradeoffs between immediate environmental goals and long-term social benefits.CC BY-NC 3.0 IGOCLIMATE CHANGEENERGY SHOCKCARBON EMISSIONSNATURAL DISASTERSWorld Bank10.1596/41017