Climate risk management – Concepts, instruments, effects

Project description

Title: Climate risk management (Loss and Damage)
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Global
Overall term: 2013 to 2021

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Weather and climate-related loss and damage (L&D) have increased dramatically over the past few decades. The most recent climate models predict a significant increase in the frequency and/or intensity of extreme weather events. This will be accompanied by gradual changes such as rising sea levels, the destruction of terrestrial and marine ecosystems, and the creation of new arid zones.

Reduced greenhouse gas emissions and various adaptation measures can mitigate the negative impacts of climate change, but L&D may still occur. As a result of these residual risks, the issue of L&D has become increasingly important in negotiations under the United Nations Framework Convention on Climate Change (UNFCCC). This led to the establishment of the Warsaw International Mechanism for Loss and Damage at the 19th Conference of the Parties (COP19) in 2013, which was also added to the Paris Agreement as an article in its own right.

Methods and instruments that have previously been used to assess and manage climate risks do not pay sufficient attention to L&D, the associated costs, and slow onset changes caused by climate change. For this reason, it is necessary to develop and implement effective new measures for assessing and dealing with climate risks. Synergies with related topics such as disaster risk management and international agendas such as the Sustainable Development Goals (SDGs) are explicitly created here. 


German development cooperation and its international partners have access to effective, tried-and-tested concepts and instruments providing guidance on climate risk assessment and management which they can apply in regions that are particularly vulnerable to climate change.

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The project focuses on the refinement and pilot implementation of concepts, methods and instruments for assessing climate risks and for comprehensive climate risk management. Accessing and disseminating new findings and experience and fostering dialogue on climate risks and L&D constitute essential aspects of this work. Climate risks and L&D also need to be discussed in the context of other international agendas, such as sustainable development. These are basic prerequisites to allow institutions and affected groups in partner regions to expand their capacities to avoid L&D caused by climate change.

The project supports the German Federal Ministry for Economic Cooperation and Development (BMZ) in the context of international negotiations on the Warsaw Mechanism and also with topics relating to comprehensive climate risk management.

Building on German development cooperation’s experience with climate change adaptation and disaster risk management, the project is piloting selected measures in partner regions. The project is currently working with the Pacific Community, India and selected countries in Central America and East Africa.


  • The pilot implementation of climate risk analyses in Tanzania (Lake Rukwa) and India (Himachal Pradesh and Tamil Nadu) in cooperation with local authorities and international research institutions has delivered an improved understanding of current and future climate risks and of associated L&D in these regions. The data and results produced by these climate risk analyses are contributing to the development of national and regional climate policy in both countries. The global programme has provided an innovative instrument for taking into account the entire spectrum of possible climate risks. 
  • A training course on ‘Loss and damage as part of comprehensive climate risk management’ has been developed. So far, this course has been implemented in Tanzania, India, Central America, the Caribbean, the Mekong Region and in the Philippines. As a result, capacities and specialist knowledge required for the identification and management of climate risks have been increased among decision-makers and technical personnel in various sectors. The course has also helped to stimulate an exchange on this issue in these regions. 
  • Information brochures and animated graphics have also been beneficial in encouraging the exchange of knowledge and experience. In this way, this project has contributed to raising awareness of the issue of climate risk management and to improving coherence between these efforts and disaster management approaches.
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