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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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Framing risk-based approaches to adaptation planning

This chapter outlines a framework for applying a risk-based approach to climate change. It explores: how risks can be identified through tools including climate risk and vulnerability assessments; how those identified risks can be characterised; and how appropriate policies can be explored and chosen to address risks. It emphasises the importance of regular monitoring and evaluation in a risk-based approach, particularly given pervasive uncertainty about the future climate.

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