Assessing the incremental costs of climate change
WHY? Why undertake an investment & financial flows (I&FF) assessment?
A key challenge for developing countries is understanding the magnitude and intensity of national efforts needed to reduce greenhouse gas emissions and to adapt to the adverse impacts of climate change. To address this issue, one key national activity under the UNDP EEG global project, Capacity Development for Policy Makers to Address Climate Change, was an assessment of the Investments and Financial Flows (I&FF) needed to address climate change for selected key sectors.
WHAT? What does a national I&FF assessment seek to answer?
With support from UNDP and regional centres of excellence, countries undertook an assessment of the adaptation and/or mitigation measures - both current and projected - that they require to address climate change in each key sector; countries then assessed the costs of these requirements against a baseline of current activities, and so were able to develop mitigation and adaptation scenarios with sector-specific investment and financial needs. This assessment provide a better understanding of the magnitude and intensity of national efforts needed to tackle climate change, as well as provide more accurate estimates of the financial reallocations and additional funds needed to implement mitigation and adaptation actions.
HOW? UNDP I&FF methodology
To support countries in this exercise, UNDP commissioned a User Guidebook comprising:
1) Workplan guidance for preparing for an I&FF assessment,
2) Methodology Guidebook for the Assessment of Investment and Financial Flows, and
3) Reporting Guidelines.
These documents are available in four languages on the Methodology page.