Climate risk management – concepts, instruments, effects

Project description

Title: Risk assessment and management for adaptation to climate change (loss and damage)
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Global
Overall term: 2013 to 2021

Erosion on the coast of Senegal.


Many countries are already suffering heavily from the effects of climate change. Weather and climate-related loss and damage have increased dramatically over the past decades, particularly in developing countries, small island states and coastal regions.

Recent climate models show that the effects of climate change, such as more frequent extreme weather events or gradual shifts, result in severe negative changes, particularly in (sub-)tropical regions. Many developing countries already lack the necessary resources for adaptation, disaster preparedness and disaster risk management. The livelihoods of vulnerable population groups are therefore at risk, which requires extensive support measures. Despite various adaptation measures that aim to mitigate the negative impacts of climate change, loss and damage may still occur. The issue of loss and damage has therefore become increasingly important in negotiations under the United Nations Framework Convention on Climate Change (UNFCCC) over recent years. This led to the establishment of the Warsaw International Mechanism for Loss and Damage and to the inclusion of the topic in the Paris Agreement in 2015 as an article in its own right.

Systematic handling of climate-related loss and damage is a new but fundamental aspect of comprehensive climate risk management. Since methods that have previously been used did not pay sufficient attention to loss and damage, it is now necessary to develop effective new measures for dealing with climate risk.


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.

A climate risk management trainer in action.


The project focuses on the refinement and pilot implementation of concepts, methods and instruments for assessing climate risks and for climate risk management.

Analysing findings on how climate risks are addressed fosters international dialogue on the topic of climate risk management and helps strengthen German development cooperation for future challenges. In this process, climate risk management and loss and damage are integrated into other international agendas such as sustainable development.

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

Selected measures are also piloted in the project partner regions. The project is currently working with the Pacific Community, India and selected countries in Central America and East Africa.

For more sustainability: tree planting campaign at a school in Tanzania.


A database with over 100 methods for identifying and assessing climate risks enables decision-makers across the globe to identify the right methods for their needs.

The pilot implementation of climate risk analyses in Tanzania (Lake Rukwa) and India (Himachal Pradesh and Tamil Nadu) has delivered an improved understanding of current and future climate risks and of associated loss and damage in these regions. These climate risk analyses support the development of national and regional climate policy in both countries.

The training course on ‘Loss and damage as part of comprehensive climate risk management’ is available as both an in-person event and online. So far, this course has been implemented in Central America, the Caribbean, western and eastern Africa, India, the Mekong Region and in the Philippines. It enables decision-makers and technical personnel to develop climate risk management skills.


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