Adaptation to Climate Change

Climate change poses a serious challenge to social and economic development in all countries, although developing countries are particularly vulnerable. Efforts to reduce greenhouse gas (GHG) emissions need to move hand in hand with policies and incentives to adapt to the impacts of climate change. Nonetheless, there is less political awareness for adaptation and enabling environments for adaptation are generally less developed. The Organisation for Economic Co-operation and Development (OECD) supports governments by providing the analytical foundation required to develop efficient and effective policies that promote adaptation to climate change. As a coordinating forum for bilateral donors, the OECD also has an important role in facilitating the integration of adaptation into development cooperation activities. OECD’s work on adaptation has contributed to key international assessments of climate change including the Fourth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) and the Stern Review on the Economics 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.

Overview brochure: OECD work on Adaptation to Climate Change (pdf)

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.

• Adaptation and Innovation: An Analysis of Crop Biotechnology Patent Data (2012)
  • Adaptation et Innovation: Une analyse des données sur les brevets dans le domaine des biotechnologies agricoles (2012)
• Plan or React? Analysis of Adaptation Costs and Benefits using Integrated Assessment Models
• Assessing the Role of Microfinance in Fostering Adaptation to Climate Change
• Economic Aspects of Adaptation to Climate Change: Integrated Assessment Modelling of Adaptation Costs and Benefits
• Economic Aspects of Adaptation to Climate Change - Costs Benefits and Policy Instruments
• OECD Expert Workshop on the Economic Aspects of Adaptation to Climate Change (April 2008).

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 developed 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.

Links:

• Monitoring and Evaluation for Adaptation: Lessons from Development Co-operation Agencies (2011)
• Harmonising Climate Risk Management: Adaptation Screening and Assessment Tools for Development Co-operation (2011)
• Bridge Over Troubled Waters - Linking Climate Change and Development;
  • Contre vents et marées - Les politiques de développement face au changement climatique;
• Statement of Progress on Integrating Climate Change Adaptation into Development Co-operation (endorsed by the 2008 DAC High-Level Meeting);
• Stocktaking of Progress on Integrating Adaptation to Climate Change into Development Co-operation Activities
• Declaration on Integrating Climate Change Adaptation into Development Co-operation;
• Domestic Policy Frameworks for Adaptation to Climate Change in the Water sector, Part II: Non-Annex I Countries: Lessons learned from Mexico, India, Argentina, Zimbabwe;
• Case Studies on Climate Change and Development: Bangladesh, Egypt, Fiji, Nepal, Tanzania, Uruguay.
• OECD Global Forum on Sustainable Development (November 2004).

Related links:

• OECD work on Development and climate change;
• OECD Development Assistance Committee (DAC) website.

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.

Links:

• Private Sector Engagement in Adaptation to Climate Change: Approaches to Managing Climate Risks (2011).
  • Participation du secteur privé à l'adaptation au changement climatique: Approches de la gestion des risques climatiques (2011)
• Incorporating Climate Change Impacts and Adaptation in Environmental Impact Assessments: Opportunities and Challenges
• Climate Change in the European Alps - Adapting Winter Tourism and Natural Hazards Management;
• Wengen 2006 Workshop - Adaptation to the impacts of climate change in the European Alps 
  (October 2006);
• Progress on Adaptation to Climate Change in Developed Countries: An Analysis of Broad Trends;
• Policy Frameworks for Adaptation to Climate Change in Coastal Zones: The Case of the Gulf of Mexico;
• Domestic Policy Frameworks for Adaptation to Climate Change in the Water sector, Part I: Annex I Countries.
  

4. Other work on adaptation to climate change:

• Financing Adaptation to Climate Change
• Adaptation to Climate Change: International Agreements for Local Needs;
• Adaptation to Climate Change: Key Terms;
• The Adaptation Landscape.
  

5. Contact information

Michael Mullan: Michael.Mullan[at]oecd.org

Bookmark this page: www.oecd.org/env/cc/adaptation