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

Countries
Georgia, Kazakhstan, Viet Nam
IKI funding
4,000,000.00 €
Duration
01/2019 till 12/2022
Status
open
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

  • The CRED project, together with partners in Georgia, Kazakhstan and Viet Nam, has developed macroeconomic models that can calculate the country- and sector-specific impacts of climate change on income and employment and demonstrate 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 Gesellschaft für Wirtschaftliche Strukturforschung (GWS), and in Viet Nam, a general dynamic equilibrium model (DGE-CRED) was developed with the Institut für Wirtschaftsforschung Halle (IWH). 10-30 economists participated in the trainings in each country, partly as model developers or model users.
  • Through coaching sessions in 2021, the trained economists were supported in calculating several adaptation measures in selected sectors (agriculture, tourism/infrastructure in Georgia and agriculture, energy and infrastructure in Kazakhstan, agriculture, forestry and housing in Viet Nam).
  • Sectoral briefs and infographics on results are available for each sector, as well as detailed national reports outlining modeling experiences and results.
  • Policy dialogue on use of results and further modeling in long-term strategies started in Georgia between Ministry of Environment and Ministry of Economy and will continue in all three countries in 2022. Stakeholder dialogues and national and international events are planned.

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