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Climate change poses a serious challenge to social and economic development. Efforts to reduce greenhouse gas emissions need to move hand in hand with policies and incentives to adapt to the impacts of climate change. OECD work on adaptation to climate change focuses on three main areas: i) Economic Aspects of Adaptation; ii) Mainstreaming adaptation in development co-operation; and iii) Adaptation in developed country contexts.
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** New Release **
Integrating Climate Change Adaptation into Development Co-operation: Policy Guidance
This policy guidance provides essential information and advice on how to mainstream climate change into development. The objectives are to: i) promote understanding of the implications of climate change on development practice and the need to mainstream adaptation in development co-operation; ii) identify appropriate approaches for integrating adaptation into development policies at national, sectoral, project levels and at local contexts; and iii) identify practical ways for donors to support developing country partners in their efforts to reduce their vulnerability to climate change.
Version française : Adaptation au changement climatique et coopération pour le développement.
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Joint High-Level Meeting of the OECD Development Assistance Committee (DAC) and the Environment Policy Committee (EPOC) -- 28-29 May 2009, Paris
1. Economic Aspects of Adaptation
What do we know about adaptation costs and benefits?
Sectoral studies have shown that in certain sectors some adaptation actions, such as behavioural adaptations, can be implemented at low cost while others, such as infrastructural measures, will require significant investment.
Aggregate multi-sectoral estimates, however, face serious limitations. In addition, the few available studies have tended to stack upon the assumptions made in preceding studies. Therefore, a consensus, even in order of magnitude terms, of global adaptation “price tags” may be premature.
From costing to incentivising adaptation
Beyond financing, public policy also has an important role to play in ensuring that private actors make timely, well-informed, and efficient adaptation decisions. A raft of policy instruments, such as insurance and environmental markets and pricing, are needed to establish the right incentives to influence such decisions. However, setting up the right incentive and partnership structures to promote adaptation will be a daunting task. Public Private Partnerships in particular would be key, not only for infrastructure but also for technology and innovation to facilitate adaptation.
Policy mixes of investments in adaptation and mitigation
Critical questions with regard to policy mixes of investments in adaptation and mitigation, and how they might vary over time, can be examined within global Integrated Assessment Modelling frameworks. Initial policy simulations show that to combat climate change in an efficient way, short term optimal policies would consist of a mixture of substantial investments in adaptation measures, coupled with investments in mitigation. In addition, ongoing increases in expected damages over time imply that adaptation is not only a short-term option but also a long term one, as both the challenges and benefits of adaptation increase.
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2. Mainstreaming Adaptation in Development
Adaptation is closely intertwined with development activities and needs to be integrated within national, sectoral and local planning processes as well as at the project level. The OECD is developing a Guidance to provide development co-operation policy makers and practitioners in both partner countries and donor agencies with information and advice on how to mainstream climate change into development.
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3. Adaptation in Developed Country Contexts
OECD countries will need to adapt to climate change as it will impact key economic sectors, such as health, agriculture, water resources and tourism. Recent OECD work within this context has assessed the progress made on adaptation at the domestic level across OECD countries, provided in-depth analysis of adaptation strategies in vulnerable regions (e.g. European Alps), and examined how adaptation could be incorporated in domestic policy frameworks in the water sector as well as in coastal zones.
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4. Other work on adaptation to climate change:
5. Contact information
Shardul Agrawala: shardul.agrawala[at]oecd.org
Bookmark this page: www.oecd.org/env/cc/adaptation
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The Economics of Climate Change Mitigation: Policies and Options for Global Action Beyond 2012
