Thursday, July 16, 2009

Understanding the Economics of Adaptation to Climate Change


Bangladesh is perhaps one of the most vulnerable countries to climate change. Adaptation is strongly interlinked with development. It is imperative to appropriately account for the costing of adaptation. Bangladesh is one the seven developing countries where the World Bank in partnership with the British, the Netherlands and Switzerland Governments launched a global study on the Economics of Adaptation to Climate Change. A Consultation workshop was held last month for launching the study where the scope of the Bangladesh case study and the major expected outcomes from the study were discussed.

The study is aimed at helping the government and development partners better integrate adaption to climate change in the context of ongoing development priorities in Bangladesh. The study is a major step forward in costing, prioritizing, sequencing, and integrating robust adaptation strategies into development plans and budgets especially in the context of high uncertainty and future costs, and potential trade-offs between various investments resulting from competing sectors up to approximately 2050.

The study would inform the international community’s development efforts on how to tailor adequate and sustainable support, as well as to provide new and additional resources to help vulnerable developing countries meet adaptation costs and improve climate resiliency. 

The study will be conducted into 2 parallel tracks: global study and country case studies. It will also take advantage of the existing global studies and country specific case studies. The global study consists of a number of sectoral studies each of which utilizes a common set of assumptions and baseline information and climate projections. The global studies will provide pertinent information to the parties to the UNFCCC for discussions leading up to COP15 at Copenhagen. Further, it would create a preliminary understanding of the adaptation measures and costs in the respective sectors when more detailed analyses are not feasible in the country studies.

The country case studies have three objectives. Firstly, it would develop a robust public sector investment plan that identifies both the types of measures to be undertaken as well as their timing. Secondly, it would ensure ownership of the country case study and the global studies by building on country processes, institutions, and capabilities. Thirdly it would provide strategic insights and ground-truthing of the global studies. 

The local renowned research institutions as Bangladesh Institute of Development Studies (BIDS), Institute of Water Modeling (IWM), Center for Environmental and Geographical Information Services (CEGIS) and Bangladesh Center for Advanced Studies (BCAS) are partners in the country case study.

The Government of Bangladesh agreed on the need to involve the local experts and research institutions to conduct further analysis on the potential socio-economic impacts resulting from climate change, particularly in areas facing gaps in data, methodology, research and operational expertise, in close collaboration with the World Bank.

Other than Bangladesh, this study will be carried out in Bolivia, Ethiopia, Ghana, Mozambique, Vietnam and Samoa.


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