The IMF-World Bank Climate Policy Assessment Tool (CPAT): A Model to Help Countries Mitigate Climate Change

IMF Working Papers, June 23, 2023

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To stabilize the climate, global greenhouse gas emissions must be cut by 25 to 50 percent by 2030 compared to 2019.
The unprecedented rate of decarbonization requires climate mitigation policies across countries, notably: carbon pricing, fossil fuel subsidy reform, renewable subsidies, feebates, emission rate regulations, and public investments.
The IMF and World Bank are making their joint Climate Policy Assessment Tool (CPAT) available to governments as a transparent, flexible, and user-friendly model covering over 200 countries.
This paper describes the CPAT model, its data sources, key assumptions, and caveats.

Coverage: over 200 countries.
Design priorities: transparency, flexibility, user-friendliness, and rapid quantification of policy impacts.
Policy instruments modeled explicitly: carbon pricing, fossil fuel subsidy reform, renewable subsidies, feebates, emission rate regulations, and public investments.

Energy demand
Energy prices
Emissions
Revenues
Welfare
GDP
Household impacts
Industry impacts
Local air pollution and health
Many other metrics relevant to economic, environmental, fiscal, and social impacts

Supports design and implementation of effective, efficient, and equitable climate mitigation policies.
Enables governments to assess trade-offs across economic, environmental, fiscal, and social objectives.
Facilitates rapid scenario analysis for different instrument mixes and country contexts.

IMF Working Papers — “The IMF-World Bank Climate Policy Assessment Tool (CPAT): A Model to Help Countries Mitigate Climate Change”