Climate resilient economic development
Title: Policy Advice for Climate Resilient Economic Development
Commissioned by: German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU)
Country: Global programme, sector / pilot project, Georgia, Kazakhstan, Viet Nam
Lead executing agency: Georgia: Ministry of Economy and Sustainable Development (MoESD); Kazakhstan: Ministry of National Economy; Viet Nam: Ministry of Planning and Investment (MPI) and Central Institute for Economic Management (CIEM)
Overall term: 2019 to 2022
Climate change has a substantial impact on economic growth and a country’s development. This increases the need for reliable and viable approaches to assessing the impact of climate risks and potential adaptation scenarios. Political decision-makers in ministries of planning and economy need sound forecasts in order to design and finance adequate economic policy instruments and actively to take countermeasures.
However, there is a lack of experience both worldwide and in the programme pilot countries (Georgia, Kazakhstan and Viet Nam) regarding the integration of climate risks into macroeconomic models for forecasting. Climate data and results from sector models need to be fed into these macroeconomic models to map climate change impacts on to various (socio-)economic variables and identify appropriate adaptation measures. In the pilot countries, requirements with respect to data availability, existing models and modelling capacities exist to a large extent.
In the pilot countries (Georgia, Kazakhstan and Viet Nam), climate risk is included in macroeconomic modelling, enabling the results to be integrated into the policy process so as to facilitate adapted economic planning.
On behalf of the political partners, the project strengthens the countries’ ability to model the economic impact of climate change independently. Using a baseline study as a foundation, it cooperates with staff from specialist agencies and institutes with responsibility for modelling.
The global project works with the partners to develop and pilot methods and instruments, and it provides support in feeding results into the policy process.
In particular, the project carries out comprehensive training, equipping national agencies to reflect the impact of climate change in their economic development planning. In this context, the project cooperates with recognised economic and climate research institutes, which provide skills in the area of climate impact research and climate modelling, and experience of macroeconomic modelling and analysis.
The project supports the integration of findings into the political decision-making process. The project also cooperates closely with a range of local data providers, including statistical bodies and meteorological and research institutes.
The programme strengthens international exchange on thematic platforms, the development of guides and other publications, and the sharing of project experience to support emulation by other countries.