Policy Advice for Climate Resilient Economic Development
As of: June 2021
In many countries, there is a lack of expertise in the model-based assessment of country-specific climate change impacts on economic development. The quantification of the economic effects can support knowledge-based policy decisions, which are necessary for climate-resilient economic policies, investments in future-proof sectors, and effective adaptation planning. Therefore, the project works with local stakeholders to implement methods and instruments for the calculation of the economic impacts of climate change impacts and their benefits for policy-making. Then, the project makes piloted methods and instruments available to governments and development organisations. The project promotes international exchange by networking with thematic platforms, providing studies, and making available the lessons learned during the project in a structured form to encourage the replication of the project activities.
State of implementation/results
- The CRED project, together with its partners in Georgia, Kazakhstan and Vietnam, has begun developing macroeconomic models that model the economic consequences of climate change and the effectiveness of adaptation measures.
- The CRED project enabled the partners to develop long-term economic models (time horizon until 2050) in cooperation with economic experts from Germany and to integrate sector-specific damage functions or assessments of the impacts of climate change. In Georgia and Kazakhstan CRED is supported by the Gesellschaft für Wirtschaftliche Strukturforschung (GWS) and in Vietnam by the Leibniz Institute for Economic Research Halle (IWH).
- While the development of models and the integration of climate scenarios is still in progress, the CRED project has already implemented capacity building measures. This will enable experts in the partner countries to understand the economic core of the models and the software so that they can use these models independently in the future. Further training blocks are planned for late 2020, early 2021. Due to Covid-19, all training sessions had to be held virtually.