Kick-off for Economics of Climate Adaptation Study in Ethiopia

On December 17 the kick-off workshop of a comprehensive climate risk analysis took place in Addis Ababa, Ethiopia. The climate risk analysis is based on the Economics of Climate Adaptation (ECA) Methodology, combining risk assessment as well as identification and assessment of adaptation measures and risk transfer solutions.
The study is implemented in the Afar and Somali regions, in eastern Ethiopia, which are among the most vulnerable regions in the country. Extreme climate conditions, such as high temperatures, low rainfall, sparse arable land and limited access to water, lead to high competition for pasture and water and put the pastorals’ livelihood under extreme stress. Climate change is expected to aggravate the effects of drought. Thus climate analyses are extremely important to achieve drought resilience and food security for the benefit of the agro-pastoral and pastoral population.

The workshop was organised and implemented by the InsuResilience Solutions Fund in cooperation with the United Nations University’s Institute for Environment and Human Security (UNU-EHS). The objective of the workshop was to familiarise all relevant stakeholders with the methodology applied, to understand their specific needs, and to define the final scope for the study. The Ministry of Agriculture of Ethiopia, as well as the KfW Development Bank inaugurated the workshop which was attended by representatives from the national and local government, academia, consultancy firms and community leaders.
The study’s results will allow policy makers to make an informed decision in prioritising cost-effective adaptation measures.
Applying risk analysis tools and models developed by the insurance sector, the ISF in cooperation with the UNU-EHS offers comprehensive climate risk analysis as an essential element of climate risk management to partners in developing and emerging economies.