The climate risk management process 1. Analysis and assessment of climate risks
By drawing on forecasts for the future developments of the climate, the economy or demographic trends, it is possible to make plans today which take into account risks that may have a negative impact on future development.
This involves, for instance, looking at sectors which are particularly threatened by climate change and are of vital importance for livelihoods in many developing countries, such as farming, fisheries and water.
Against this background the BMZ has commissioned the Potsdam Institute for Climate Impact Research (PIK) to conduct comprehensive climate risk analyses for the agricultural sector in selected African partner countries. The PIK has already completed climate risk analyses for Ghana and Ethiopia. The climate risk analyses set out existing and future climate risks for these partner countries and identify different ways for agriculture to adapt to these risks. In addition, the studies also examine the economic consequences of climate change by carrying out cost-benefit analyses of different ways of adapting to climate change. The comprehensive information base that is thus compiled enables decision-makers to assess risks better and purposively deploy limited funds for resilience-building measures. The PIK cooperates closely with relevant partner governments in drawing up the climate risk analyses, also involving local actors from the start and drawing on local expertise, in order to build capacities in partner countries and ensure that the climate risk analyses are perfectly adapted to local conditions. The PIK is currently conducting and will conduct further climate risk analyses in partner countries in sub-Saharan Africa, for instance in Burkina Faso and Niger.
In addition, the PIK is commissioned by the BMZ to draw up climate risk profiles in African countries that are especially hard hit by climate change (for instance Burkina Faso, Chad, Côte d'Ivoire, Ethiopia, Ghana, Kenya, Mali, Mauretania, Niger, Tanzania, Madagascar and Uganda) based on climate and socio-economic scenarios. The climate risk profiles provide a concise overview of additional, specifically selected vulnerable key sectors in the partner countries: farming, water, infrastructure, eco systems and health. They thus have the potential to mainstream climate aspects in the medium- to long-term climate and development strategies of partner countries and provide a sound basis for making Germany’s development cooperation activities climate smart.