{
  "title": "QUANTITATITIVE CLIMATE RISK ASSESSMENT FISCAL TOOL (Q-CRAFT)",
  "sourceUrl": "https://www.imf.org/en/topics/fiscal-policies/fiscal-risks/fiscal-risks-toolkit/fiscal-risks-toolkit-q-craft",
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  "summary": "The tool helps governments assess the fiscal risks posed by climate change. It allows governments to conduct quantitative, long-term analysis of the impact of climate change on key macroeconomic and fiscal indicators, including government debt, under different climate scenarios.",
  "sections": [
    {
      "heading": "Purpose and overview",
      "content": "- Q-CRAFT helps governments assess the fiscal risks posed by climate change.\n- The tool enables quantitative, long-term analysis of climate change impacts on key macroeconomic and fiscal indicators, including government debt.\n- Q-CRAFT assesses risks across various Intergovernmental Panel on Climate Change (IPCC) emission scenarios through the end of the century."
    },
    {
      "heading": "Tool description and capabilities",
      "content": "- Developed by the IMF's Fiscal Affairs Department (FAD) as a transparent, flexible, and easy-to-use Excel-based tool.\n- Projects key macroeconomic variables and fiscal aggregates, such as:\n  - GDP,\n  - fiscal deficit,\n  - debt-to-GDP ratio.\n- Uses publicly available data and user assumptions for over 170 economies through to the end of the century.\n- Assesses fiscal aggregate evolution under different IPCC emission scenarios and various speeds of economic adaptation to rising temperatures.\n- Can be adapted to use national data and integrate additional shocks, such as natural disasters."
    },
    {
      "heading": "Policy relevance and how Q-CRAFT informs policymaking",
      "content": "- Equips government institutions, such as Ministries of Finance and Independent Fiscal Institutions, with comprehensive, data-driven assessments of long-term macroeconomic and fiscal risks from climate change.\n- Enables projection of key variables like GDP growth and debt-to-GDP ratios through 2100.\n- Policy uses:\n  - Identify slow-building fiscal risks from climate change that may not appear in short-term budgets or medium-term fiscal frameworks.\n  - Assess the impact of different emission scenarios on public finances to aid resilience-building policies and support earlier and smoother policy interventions.\n  - Integrate climate risks into longer-term fiscal planning and strategy development, complementing other macroeconomic models that account for factors like aging populations.\n  - Enhance long-term fiscal analysis by incorporating climate-change impacts on fiscal variables and extending the time horizon for fiscal policy analysis."
    },
    {
      "heading": "Capacity development application",
      "content": "- Through Capacity Development (CD) support, FAD helps member countries integrate climate considerations into fiscal risk frameworks using Q-CRAFT.\n- CD objectives and outcomes:\n  - Quantify climate-related fiscal risks and strengthen macro-fiscal forecasting capabilities.\n  - Foster cross-government collaboration.\n  - Lead to inclusion of climate change fiscal risk analysis in Fiscal Risk Statements in numerous countries globally."
    }
  ],
  "bullets": [
    "Q-CRAFT helps governments assess the fiscal risks posed by climate change.",
    "The tool enables quantitative, long-term analysis of climate change impacts on key macroeconomic and fiscal indicators, including government debt.",
    "Q-CRAFT assesses risks across various Intergovernmental Panel on Climate Change (IPCC) emission scenarios through the end of the century.",
    "Developed by the IMF's Fiscal Affairs Department (FAD) as a transparent, flexible, and easy-to-use Excel-based tool.",
    "Projects key macroeconomic variables and fiscal aggregates, such as:",
    "Uses publicly available data and user assumptions for over 170 economies through to the end of the century.",
    "Assesses fiscal aggregate evolution under different IPCC emission scenarios and various speeds of economic adaptation to rising temperatures.",
    "Can be adapted to use national data and integrate additional shocks, such as natural disasters.",
    "Equips government institutions, such as Ministries of Finance and Independent Fiscal Institutions, with comprehensive, data-driven assessments of long-term macroeconomic and fiscal risks from climate change.",
    "Enables projection of key variables like GDP growth and debt-to-GDP ratios through 2100.",
    "Policy uses:",
    "Through Capacity Development (CD) support, FAD helps member countries integrate climate considerations into fiscal risk frameworks using Q-CRAFT.",
    "CD objectives and outcomes:",
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    "**User Guide**"
  ],
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    {
      "title": "Qcraft Toolv10",
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      "title": "User Guide",
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