## QUANTITATITIVE CLIMATE RISK ASSESSMENT FISCAL TOOL (Q-CRAFT)

## Source details

**Canonical URL:** [QUANTITATITIVE CLIMATE RISK ASSESSMENT FISCAL TOOL (Q-CRAFT)](https://www.imf.org/en/topics/fiscal-policies/fiscal-risks/fiscal-risks-toolkit/fiscal-risks-toolkit-q-craft)

## Other formats

- [Markdown version](/en/topics/fiscal-policies/fiscal-risks/fiscal-risks-toolkit/fiscal-risks-toolkit-q-craft/index.md)
- [Structured JSON version](/en/topics/fiscal-policies/fiscal-risks/fiscal-risks-toolkit/fiscal-risks-toolkit-q-craft/index.json)
- [Bundle manifest](/en/topics/fiscal-policies/fiscal-risks/fiscal-risks-toolkit/fiscal-risks-toolkit-q-craft/bundle-manifest.json)

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### Purpose and overview
- 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.

### Tool description and capabilities
- 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:
  - GDP,
  - fiscal deficit,
  - debt-to-GDP ratio.
- 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.

### Policy relevance and how Q-CRAFT informs policymaking
- 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:
  - Identify slow-building fiscal risks from climate change that may not appear in short-term budgets or medium-term fiscal frameworks.
  - Assess the impact of different emission scenarios on public finances to aid resilience-building policies and support earlier and smoother policy interventions.
  - Integrate climate risks into longer-term fiscal planning and strategy development, complementing other macroeconomic models that account for factors like aging populations.
  - Enhance long-term fiscal analysis by incorporating climate-change impacts on fiscal variables and extending the time horizon for fiscal policy analysis.

### Capacity development application
- Through Capacity Development (CD) support, FAD helps member countries integrate climate considerations into fiscal risk frameworks using Q-CRAFT.
- CD objectives and outcomes:
  - Quantify climate-related fiscal risks and strengthen macro-fiscal forecasting capabilities.
  - Foster cross-government collaboration.
  - Lead to inclusion of climate change fiscal risk analysis in Fiscal Risk Statements in numerous countries globally.

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## Content in this bundle

- [Qcraft Toolv10 (XLSX)](/-/media/files/topics/fiscal/fiscal-risks/tool/qcraft-toolv10.xlsx){rel="external" type="application/vnd.openxmlformats-officedocument.spreadsheetml.sheet"}
- **User Guide**
  - [User Guide (Markdown version)](/-/media/files/topics/fiscal/fiscal-risks/tool/qcraft-user-guidev10.pdf.md){rel="alternate" type="text/markdown"}
  - [User Guide (PDF)](/-/media/files/topics/fiscal/fiscal-risks/tool/qcraft-user-guidev10.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/topics/fiscal-policies/fiscal-risks/fiscal-risks-toolkit/fiscal-risks-toolkit-q-craft_