Executive Summary: Ethiopia - Drought Risk

In this report, drought adaptation measures were analyzed for the Afar and Somilai regions in Ethiopia in terms of cost-efficiency and risk mitigation effectiveness. A total of 26 measures (13 options of measures in each region) were successfully assessed using the modelling platform CLIMADA. The Economics of Climate Adaptation (ECA) framework is set out to develop practical recommendations that enable national and local decision-makers to build a comprehensive assessment of the climate risk that their economies are facing while minimizing the cost of adaptation through cost-efficient strategies. A particular emphasis is made on a robust and integrated approach based on sound scientific facts. The ECA as applied here contains three elements supported by the modelling platform CLIMADA: 1. Climate risk identification: Conduct an identification of climate risk in a defined region (e.g. urban area), identify areas and people at risk, spanning all significant climate hazards and the full range of possible impacts for different sectors 2. Climate risk quantification: Calculate the expected damage across multiple climates and economic scenarios 3. Identification and prioritization of CCA measures (using Cost-Benefit Analysis of CCA measures): Determine strategies including a portfolio of specific CCA measures with detailed cost/benefit assessment. Additionally, ECA includes a strong component of stakeholder engagement to complement the hazard modelling and asset valuation. This report presents a brief overview of ECA and the main results of drought impact today and in the future using CLIMADA, a probabilistic modelling platform.