Stage 4.3 Introduce CBA & agree CBA objectives & boundaries
Who's Involved
- Workshop participants, facilitated by Assignment Management Team
Timing and time required
- During ‘Climate risk management and cost-benefit analysis’ workshop
- 3.5 hours
Key questions
- Why is a CBA process to be followed?
- How does CBA assist in decision-making?
- Why is it important to include environmental and social costs and benefits in the analysis?
- What is the underlying objective that the CBA should address (e.g., a policy level objective or a technology level objective)?
- What are the technical, political, financial or other limits and boundaries of the study?
Tools
- Sections for report describing assessment of climate change risks to energy sector performance (supply and demand)
- Risk register and risk table from Stage 3.4
- Presentation materials on CBA Process
Guidance
- The introduction to the Cost Benefit Analysis (CBA) should be delivered by the Assignment Management Team.
- The Assignment Management Team should consider possible objectives for the CBA prior to the workshop, in case they need to stimulate discussion. However, ideally, the objectives should be generated and discussed by the workshop participants themselves.
- Setting the objective for the CBA is a critical task and may require reconsideration or review during the workshop. It is likely that the identification of adaptation options (Stage 4.1) will have resulted in a long-list of adaptation options, ranging across a very broad set of issues. If so, it will not be achievable to undertake a cost-benefit analysis for every single option. Instead, it will be necessary to develop a focused objective for the CBA, with an associated smaller number of options for analysis (typically between 5 to 8).
- For instance, if the risk assessment has identified an energy demand-supply gap opening up due to climate change, then it may be sensible to define the objective for the CBA as answering the question: ‘What is the optimal approach to supply the shortfall in energy that is caused by climate change?’
- The boundaries for the CBA may include: subject areas that are outside the knowledge or authority of the workshop participants; technical or physical limitations; or, limitations to managing the complexity of the CBA achievable within the scope of the study.
- It is important that the facilitator draws workshop attendees away from technical details, to focus on the broad picture.
Outputs
- An objective for the CBA, written down in one sentence, and a list of boundaries for the CBA
Albania
Uzbekistan