ECONADAPT

The aim of the ECONADAPT project is to provide user-orientated methodologies and evidence relating to economic appraisal criteria to inform the choice of adaptation actions using analysis that incorporates cross-scale governance under conditions of uncertainty. A critical theme of the proposal is therefore to support the application of adaptation economics in the period following the publication of the EU’s 2013 Adaptation Strategy, focusing on key decision areas that need enhanced economic information, and on the key users of such information. Key decision areas include: management of extreme weather events modified by climate change that have high impact costs in the short term; appraisal of projects where the costs of climate risks are borne over long time periods; appraisal of flows of large-scale EU funds where the case for climate resilience needs to be made; macro-economic effects of climate change risks and adaptation strategies at Member State and EU levels, and; appraisal of overseas development assistance aimed at reducing the damage costs of climate risks in less developed countries. The project will work intensively with stakeholders from e.g. relevant DGs, Member States, Regional or local policy makers, and seek to learn from, and inform, experience. The methods and approaches will be co-developed with the diverse user groups engaged in using economic data within adaptation decision making. A two-tier approach is proposed to provide detailed guidance and empirical data: first, to other economists or private sector organisations with adaptation needs, and second, to other users who may want to use ‘light-touch’ methods, with the empirical data to help in scoping decision making outcomes. A strong link will be made with the European Climate Adaptation Platform (Climate-ADAPT), with the guidance and economic information designed for a wide range of users.

The project set out to simplify the process of measuring economic risks for climate adaptation policies in the EU in the face of uncertainty. The researchers worked to apply the EU’s 2013 Adaptation Strategy, focusing on key decision areas that need more economic information.

The team developed a policy-led analysis method, and then applied adaptation economics to this. Researchers made sure to collate the knowledge base with the costs and benefits of adaptation.

Researchers improved methods to assess adaptive capacity, and methods to scale and aggregate cost and benefit values. ECONADAPT also applied techniques for effective decision-making under uncertainty to adaptation economics, and tried to apply their new methods to real-world applications.

With climate change putting pressure on national budgets, researchers considered the costs and benefits of an early response to increasing frequency of climate change-driven disasters. ECONADAPT developed guidance for economic project appraisal via case studies of river flooding and sea-level rise.

The team also completed a case study in the agriculture sector and developed guidance for policy appraisal. ECONADAPT looked at the economic effects of market-driven and planned adaptation, using macroeconomic modelling to assess economic consequences of adaptations from a top-down perspective.

Researchers developed policy appraisal frameworks for international climate finance in developing countries, and they applied this work in various case studies. Finally, ECONADAPT compiled all of the information, methods, insights and guidance into a web-based library and policy toolbox, available on the project website.