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Climate Change Risks and Adaptation

Linking Policy and Economics

image of Climate Change Risks and Adaptation

Climate change is giving rise to diverse risks, ranging from changing incidences of tropical diseases to increased risks of drought, varying widely in their potential severity, frequency and predictability. Governments must integrate the management of these climate risks into policy making if they are to successfully adapt to a changing climate. Economic analysis has a vital role to play in supporting these efforts, by identifying costs and benefits and supporting decision-making for an uncertain future. However, this analysis needs to be adapted to the institutions, policies and climate risks in a given country. Building on the experience of OECD countries, this report sets out how the latest economic evidence and tools can enable better policy making for adaptation.

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Approaches to managing climate risks

This chapter provides an overview of the approaches used by OECD countries to manage their exposure to climate risks. It highlights: the need to combine political will; effective institutional structures; and tools and evidence to ensure an effective response to climate change. It explores how national governments can support activity by local governments and the private sector. It emphasises the importance of measuring progress in adaptation using monitoring and evaluation.

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