Stage 4.4 Discuss & confirm adaptation options & parameters for CBA
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
- What are the options to achieve the agreed objective?
- What are the components of each option?
- What are the financial, social and environmental parameters (costs and benefits) associated with each option?
- How will climate change affect each of the options?
- Which parameters should be included in the CBA?
Tools
- Checklist of potential parameters
Guidance
- Approximately 5 to 8 distinct options need to be developed in discussion with workshop participants.
- The options may achieve the objective in different ways.
- For instance, if the objective of the CBA is to address the question: ‘What is the optimal approach to supply the shortfall in energy that is caused by climate change?’ then the options could be a diverse range of new energy generation assets, opportunities for regional energy trade, and ways of reducing energy demand.
- Options should be generated through discussion which range from ‘Business-As-Usual’ through to novel or far-fetched ideas. Only an outline of the options is required at the workshop.
- It is important to agree with participants the financial, social and environmental parameters against which the options will be appraised. These may include:
- Capital and Operational Costs (CAPEX and OPEX)
- Energy and fuel pricing
- Value of water
- Greenhouse gas emissions
- Land value
- Disturbance/ relocation of people
- Ecological value
- Other parameters to be agreed for the CBA include:
- The time horizon over which the assessment is to based
- Discount rate and Internal rates of return to be considered (ranges can be used).
Outputs
- Summary description of options for CBA and parameters
Albania