## Climate Policy Diagnostic (CPD)

## Source details

**Canonical URL:** [Climate Policy Diagnostic (CPD)](https://www.imf.org/en/topics/climate-change/climate-policy-diagnostic)

## Other formats

- [Markdown version](/en/topics/climate-change/climate-policy-diagnostic/index.md)
- [Structured JSON version](/en/topics/climate-change/climate-policy-diagnostic/index.json)
- [Bundle manifest](/en/topics/climate-change/climate-policy-diagnostic/bundle-manifest.json)

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### What the CPD is
- The Climate Policy Diagnostic (CPD) provides countries with an in-depth analysis of their climate policies, focusing on mitigation and adaptation strategies and the necessary institutional and legal frameworks to support these policies.
- The CPD complements other IMF climate capacity development tools, such as the C-PIMA (Climate-Public Investment Management Assessment) and Green Public Financial Management (PFM), and diagnostics from other international organizations like the World Bank Country Climate and Development Reports (CCDR).
- The IMF has developed the Climate Macroeconomic Assessment Programs (CMAP) to offer a comprehensive approach for creating policy responses to the economic impacts of climate change; CMAP pilots were conducted in Samoa and Madagascar.
- The CPD’s flexible and modular design is tailored to meet the specific needs, contexts, and challenges of each country and provides a detailed set of recommendations, including potential timelines and priorities, to help build long-term resilience.
- The CPD has been instrumental in shaping the Resilience and Sustainability Facility programs in Tanzania, Moldova, Cabo Verde, and Honduras.
- The CPD supports the design and implementation of fiscal policies that back countries’ climate strategies through three main pillars.

### How to request a CPD
- Government representatives can request a CPD through their country’s respective Executive Director office or by contacting IMF staff at FADCPCOOR@imf.org.

### Mitigation support (analysis, tools, and capacity development)
- The IMF analyzes environmental, fiscal, economic, and distributional impacts of a wide array of mitigation policies, including carbon pricing, using the Climate Policy Assessment Tool (CPAT).
- CPAT aids capacity development missions in assisting member countries to design and implement effective policies to achieve climate objectives.
- Other analytical tools and resources used include:
  - Vehicle Feebates Model
  - Border Carbon Adjustment Model
  - Fossil Fuel Subsidy Database
  - Nationally Determined Contributions (NDC) conversions
- Sector-specific mitigation advice covers transportation, energy, industry, forestry, and land use.
- For fossil fuel exporters, guidance includes upstream mitigation measures and fiscal regime reform options to facilitate the energy transition.
- Capacity development extends to compensating measures and social safety nets associated with mitigation policies.
- The IMF conducts regional and country-specific workshops on analytical tools and climate mitigation policies (example: a recent workshop supporting Chile).

### Macro-fiscal analysis and adaptation support
- The IMF offers climate fiscal assessment and recommendations to help member countries meet climate goals and enhance resilience.
- Capacity development covers sectoral fiscal policy issues, including water and energy sectors, and disaster risk financing and management.
- The IMF leverages its database of country-level historical climate observations and future scenarios to assist countries in assessing future climate scenarios, including extreme events.
- Support enables development of analytical insights and empirical evidence for integrating climate change into macro-fiscal planning and frameworks.

### Enabling institutions and mainstreaming
- Capacity development includes evaluating institutional and legal frameworks underpinning implementation of climate policies.
- Reviews assess climate strategies, policies, and frameworks for comprehensiveness and alignment with NDCs.
- The IMF assesses institutional mechanisms supporting NDC implementation and offers recommendations for mainstreaming climate considerations into decision-making processes and developing internal capacities.

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## References

- [Climate Macroeconomic Assessment Programs](https://www.imf.org/en/Publications/Policy-Papers/Issues/2023/06/15/Review-of-the-Climate-Macroeconomic-Assessment-Program-Pilots-534845)
- [Samoa](https://www.imf.org/en/Publications/CR/Issues/2022/03/21/Samoa-Technical-Assistance-Report-Climate-Macroeconomic-Assessment-Program-515505)
- [Madagascar.](https://www.imf.org/en/Publications/CR/Issues/2022/11/14/Republic-of-Madagascar-Technical-Assistance-Report-Climate-Macroeconomic-Assessment-Program-525665)
- [Resilience and Sustainability Facility](https://www.imf.org/en/Topics/Resilience-and-Sustainability-Trust)
- [Climate Policy Assessment Tool](https://www.imf.org/en/Topics/climate-change/CPAT)
- [analytical insights](https://www.imf.org/en/Topics/climate-change/staff-climate-notes)
- [empirical evidence](https://www.imf.org/en/Publications/WP/Issues/2022/07/28/Estimating-Macro-Fiscal-Effects-of-Climate-Shocks-From-Billions-of-Geospatial-Weather-521474)

_Source: https://www.imf.org/en/topics/climate-change/climate-policy-diagnostic_