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ClimateChangeinSmall
OpenEconomies:The
CaseofAndorra
CatalinaMichelleTejada
SIP/2025/153
IMFSelectedIssuesPapersarepreparedbyIMFstaffas
backgrounddocumentationforperiodicconsultationswith
membercountries.Itisbasedontheinformationavailableat
thetimeitwascompletedonFebruary9,2024.Thispaperis
alsopublishedseparatelyasIMFCountryReportNo24/58.
2025
DEC
©2025InternationalMonetaryFundSIP/2025/153
IMFSelectedIssuesPaper
EuropeanDepartment
ClimateChangeinSmallOpenEconomies:TheCaseofAndorra
PreparedbyMichelleTejada
AuthorizedfordistributionbyRodolpheBlavy
December2025
IMFSelectedIssuesPapersarepreparedbyIMFstaffasbackgrounddocumentationforperiodic
consultationswithmembercountries.Itisbasedontheinformationavailableatthetimeitwas
completedonFebruary9,2024.ThispaperisalsopublishedseparatelyasIMFCountryReportNo24/58.
ABSTRACT:Climatechangeismacro-criticaltoAndorra:with(mostlywinter)tourismaccountingforonethird
ofitseconomy,Andorraisdirectlyexposedtoclimatechange—shorterwinterseasons,decliningsnowfalls,
highercostsfromartificialsnowmakingareallnegativelyaffectingtheeconomy’smainbusiness.Becauseof
itshigheraltitude,Andorraismoreresilientthanotherwintertourismlocationsintheregionandshouldusethis
windowofopportunitytoenactneededpolicies.Theauthorities’climatechangestrategy—withambitious
goals—isfocusedonmitigation.UsingtheClimatePolicyAssessmentTool(CPAT),thispaperanalyzesthe
feasibilityofachievingthedecarbonizationobjectiveunder
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