Integrating Climate Change and Natural Disasters in the Economic Analysis of Projects : A Disaster and Climate Risk Stress Test Methodology
To maximize development gains, World Bank projects must consider climate change and disaster risks in their design and appraisal. Buildings could be exposed to heat waves, roads might be vulnerable to floods, and agricultural practices may be subje...
| Main Authors: | , , , , , |
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| Language: | English |
| Published: |
World Bank, Washington, DC
2021
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/844361623398590980/A-Disaster-and-Climate-Risk-Stress-Test-Methodology http://hdl.handle.net/10986/35751 |
| Summary: | To maximize development gains, World
Bank projects must consider climate change and disaster
risks in their design and appraisal. Buildings could be
exposed to heat waves, roads might be vulnerable to floods,
and agricultural practices may be subject to drought and
pests. Although projects can be simultaneously vulnerable to
several such risks, in most cases, it is possible to design
and implement projects that are resilient to future climate
change and natural risks. Doing so, however, requires these
risks to be considered at each step of the project cycle. To
select the best projects and ensure they deliver as
expected, it is important to ensure that all project
appraisal and assessment processes including economic
analyses properly consider all risks. This guidance note
proposes a simple methodology for doing this by adding a
stress test for climate change and natural disasters to the
economic analysis of a project. |
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