Policy Advice for Climate Resilient Economic Development

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.

Project data

Georgia, Kazakhstan, Viet Nam
IKI funding
4,000,000.00 €
01/2019 till 06/2023
Implementing organisation
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Political Partner
  • Ministry of Economy and Sustainable Development (MoESD), Georgia
  • Ministry of National Economy – Kazakhstan
  • Ministry of Planning and Investment - Viet Nam
Implementing Partner
  • Central Institute for Economic Management (CIEM)
  • Institute of Economic Research
  • Ministry of Economy and Sustainable Development (MoESD), Georgia

State of implementation/results

  • Together with partners in Georgia, Kazakhstan and Vietnam, the CRED project has devel-oped national macroeconomic models that calculate the country-specific impacts of climate change and appropriate adaptation measures on gross domestic product and employment. Thus, the models show that investments in adaptation measures are effective and profitable.
  • In Georgia and Kazakhstan, dynamic input-output models (e3.ge, e3.kz) were developed with experts from the Society for Economic Structures Research (GWS), and in Vietnam, a general dynamic equilibrium model (DGE-CRED) was developed with the Halle Institute for Economic Research (IWH). In the countries, 10-30 economists* participated in the trainings, partly as model developers* or model users*.
  • Since 2021, the trained economists have been support-ed with coaching in the calculation of several adaptation scenarios for selected sectors (agri-culture, tourism/infrastructure in Georgia; agriculture, energy and infrastructure in Kazakhstan; agriculture, forestry and housing in Vietnam) and data updating. In some cases, scenarios trig-gered by other shocks (pandemic/war) and their economic consequences were also analyzed.
  • A prototype macroeconomic model was developed based on country-specific data from in-ternational databases. This prototype model was adapted for Mongolia as an example. The prototype enables the provision of short training courses for other interested countries. A three-day training was held in Mongolia in December 2022, followed by virtual short trainings for over 100 interested experts* from different countries.
  • Analyses and infographics of model results are available, as are detailed national reports describing modeling experiences and results. A global report elaborates project experiences across countries.
  • Stakeholder dialogues to dis-seminate results and promote model use for adaptation planning were held in Georgia, Ka-zakhstan, and Vietnam in 2022.
  • Inter-ministerial workshops in the pilot countries were held in late 2022/early 2023 to discuss future application of the models for national adaptation plan-ning.
  • The CRED project and its partners regularly contribute their experiences at relevant events, including the OECD Green Action Task Force Meeting in Tbilisi, Georgia, June 30-July 1, 2022 (www.oecd.org/…) and the Seventh Meeting of the Katowice Committee on the Impacts of the Implementation of Re-sponse Measures (KCI) in Sharm El-Sheik, November 2-3, 2022 (unfccc-events.azureedge.net/…).
  • The CRED project's approach to using macroeconomic mod-els for national adaptation planning is explained in a video: www.international-climate-initiative.com/…
  • The project publishes regularly in blogs: most recently on Promoting Climate Adaptation through International Cooperation (www.international-climate-initiative.com/…

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