The Economics of Climate Adaptation (ECA) methodology offers a systematic and transparent approach that combines probabilistic risk modelling techniques of CLIMADA with in-depth, inter-sectoral stakeholder discussions. The framework provides decision makers with information about potential climate-related damage to their environment, economies and societies. By quantifying future climate risks, ECA studies help decision makers to identify and prioritise cost-effective climate change adaptation measures for a variety of sectors.

A key advantage is the early integration of risk analytics into project planning and the assessment of adaptation or land use programmes. Thus, the results from CLIMADA/ECA studies can be used as a foundation for adaptation strategies, including National Adaptation Plans (NAPs), and/or as feasibility studies required by international funding institutions.

Currently, we are implementing ECA studies in Honduras, Ethiopia and Vietnam in cooperation with ETH Zurich and United Nations University – Institute for Environmental and Human Security (UNU-EHS). The three studies all focus on different hazards, assets, environmental and institutional settings highlighting the methodology’s flexibility.

CLIMADA stands for climate adaptation and is a probabilistic modelling tool used to conduct risk assessments. CLIMADA provides a robust analysis of the cost and benefits of adaptation measures and allows informed resilience investments into adaptation and disaster risk reduction. This open-source and open-access global platform uses state-of-the-art risk modelling and options appraisal. Developed by the insurance sector, the platform provides globally consistent multi-hazard risk assessments on scales from national to local levels. Using the probabilistic modelling approach provides the ability to estimate the expected economic damage as a measure of risk today, the incremental increase from economic growth and the further incremental increase due to climate change.

Mainstreaming Climate Risk Analysis using open-source platforms like CLIMADA, therefore, promotes cost-effective adaptation measures and spur decisive action.

We are conducting at a national scale a quantitative CLIMADA study in Vietnam in cooperation with ETH Zurich and AXA.