Economics of Climate Change II: Dealing with climate risks

Background and Goals

The BMBF funding priority "Economics of Climate Change II", building on the results of the first funding phase (2011-2015), has been funding projects adressing the following thematic priorities:

  • Climate protection and transformation: decarbonisation - competitiveness - quality of life
  • Climate protection: instruments and policies after COP21
  • Dealing with climate risks
  • International climate policy
  • Financial markets, financial sector and finance

The thematic priority "Dealing with climate risks" focuses on the consequences and costs of climate change as well as the associated risks and economic aspects of adapting to the effects of climate change. The following seven projects are funded:

  • Supporting Mongolian households in adapting to climate change (ADAPT)
  • CLIC – Climate impact chains in a globalized world: a challenge for Germany
  • CLIMATE_AFFECT – Effects of climate change and climate change-related natural hazards on individuals, companies and the insurance sector
  • GoCoase – Coastal protection strategies for adaptation to climate change: institutional control and social interaction
  • RUINS – Risk, uncertainty and insurance under climate change. Coastal land management in the German North Sea
  • SLICE – Short and long-term consequences of extreme climatic events

The findings of this thematic focus form an important information and decision-making basis for actors in business, society and politics in order to deal with the risks of climate change and to develop measures for adaptation.

 

Content time

since

Research area/region

Country
  • Germany
  • Europe (EU-25)
  • global

Steps in the process of adaptation to climate change

Step 2a: Identify and assess risks - climate effects and impact

Approach and results 

n the projects, the consequences and costs of climate change are considered. The assessments also include transboundary climate impacts, long-term impacts, impacts on ecosystems and ecosystem services, as well as social impacts and distributional effects.

 

Step 3: Develop and compare measures

Measures and/or strategies 

Possible adaptation measures in selected areas are identified and processed in the funded projects. It is not only about the costs and benefits of adaptation measures and their distributional effects, but also about institutional measures and framework conditions for the prevention and management of climate risks. The following questions play a role in this context: What barriers to adaptation are there and how can these be overcome? What role can insurance companies and insurance markets play with regard to climate risks - especially in low-income countries? What are the limits of adaptation? Many of these questions can only be answered expediently in a dialogue with the main stakeholders.



Participants

Funding / Financing 

Bundesministerium für Bildung und Forschung (BMBF): FONA - Forschung für Nachhaltigkeit

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Fields of action:
 cross sectoral