By Thomas Schinko and Reinhard Mechler, IIASA Risk, Policy and Vulnerability Program
Discussions on dealing with the already palpable as well as future burdens from climate change have moved into the spotlight of international climate policy. They are being tackled as part of the climate negotiations via the Warsaw International Mechanism (WIM) for Loss and Damage associated with Climate Change Impacts (Loss and Damage Mechanism), a measure for dealing with impacts and adaptation related to extreme climate events and slow onset events that was agreed in 2013. Debate on the scope, framing and on how the mechanism will eventually be implemented is still continuing, and is heavily framed around moral issues such as compensation, liability, and a need for attributing disasters to climate change, which is a difficult and complex issue.
Opening of COP 21 on 29 November 2015. Photo: Benjamin Géminel via Flickr
To help move this contentious debate forward, we recently organized a meeting at IIASA to set up a broad scientific network to support work under the Loss and Damage Mechanism with rigorous and evidence-based research.
Since the first climate negotiations, climate justice has been a major source of contention, with countries disagreeing on the level of responsibility for climate change and the extent to which developed and developing countries should contribute to the solutions. These discussions have predominantly focused on climate mitigation responses, but over the last few years, impact and risk issues have moved into the limelight.
Discussions in the run-up to the 21st Conference of the Parties to the Climate Convention (COP 21) in Paris make it clear that answering key questions revolving around climate justice and climate finance will be pivotal for the conference to deliver on any global climate change agreement.
Even though some rich countries currently appear to acknowledge the central role of a mechanism covering losses and damages within a new global climate agreement to be negotiated at COP 21 in Paris, huge reservations remain. With changing climates, extreme weather events are likely to increase in frequency as well as in intensity. The global North fears exposure to soaring claims for financial compensation by countries of the global South, which will be facing the most severe risks from climate change. In fact, even the meaning and nature of Loss and Damage is still being debated – some suggest the Loss and Damage mechanism should be part of adaptation, while others want it to focus on residual risks that remain after adaptation efforts have been taken. For example, it could finance potential climate-induced migration.
Discussion of compensation raises complex issues about liability, and would presumably require attribution of losses and damages to emitters. Indeed, climate science has been making great progress in attribution research. Recent work has shown a significant human element in mega-events such as superstorm Sandy in 2013 in the US or the Australian heatwave in 2013. Yet, as our kick-off meeting reconfirmed, linking anthropogenic greenhouse gas emissions to extreme weather events and to risks for people and property will remain extremely complex, not least as risks from climate-related events are shaped by many factors, including climate variability, rising exposure of people and assets, as well as socio-economic vulnerability dynamics. While the basic case for climate justice has been made, the concrete, enforceable case remains much harder to establish.
A protest for “climate justice” at Quezon City, Philippines on 14 November 2015. Photo: RB Ibañez via Flickr
For these good reasons and to not derail the debate by fixating on questions regarding liability, the debate has extended beyond the narrow focus on compensation – the omnipresent elephant in the room of the UNFCCC process. The meeting at IIASA, which brought together 14 researchers from 10 institutions and 8 countries, also suggested that for a productive discussion, it makes sense to focus broadly on managing various climate risks by fostering current policies and practices while keeping the climate justice debate in close consideration.
This proposal essentially suggests to build on a long history of managing climate-related (and geophysical driven) extremes by employing a broad portfolio of different disaster risk management tools, including financial instruments such as insurance or regional risk pools. As identified also by the IPCC’s 5th assessment report, building on this body of knowledge and practice for comprehensively tackling existing and increasing extremes, holds a lot of promise and has seen international support, e.g. by the Sendai Framework for Action.
The discussion at IIASA focused on these two angles – climate justice and climate risk management – and worked out the following specific foci and building blocks for an evidence-based research approach to support the operationalization of the Loss and Damage Mechanism:
- Articulation of principles and definitions of Loss and Damage, including ethical and normative issues central to the discourse (e.g. liability and responsibility).
- Definition of the Loss and Damage space vis-á-vis the adaptation space.
- Research on the politics and institutional dimensions of the debate.
- Defining the scope for dealing with sudden-onset risk versus slow-onset impacts.
In the coming months the novel network effort will tackle these issues and questions in order to provide actionable but research-based input into the Loss and Damage deliberations.
Note: The authors thank the researchers present at the kick-off event at IIASA for their input on the topic and this blog post: Florent Baarsch (Climate Analytics, Berlin), Laurens Bouwer (Deltares, Delft), Rachel James (University of Oxford), Stefan Kienberger (University of Salzburg), Ana Lopez (University of Oxford), Colin McQuistan (Practical Action, Rugby), Jaroslav Mysiak (FEEM, Venice), Ilan Noy (University of Wellington), Joeri Roegelj (IIASA), Olivia Serdeczny (Climate Analytics, Berlin), Swenja Surminski (LSE, London), Koko Warner (UNU-EHS, Bonn)
Bouwer LM (2013). Projections of future extreme weather losses under changes in climate and exposure. RiskAnalysis 33(5):915–930
Herring, S.C., Hoerling, M.P., Peterson, T.C., Stott P.A. (eds) (2014). Explaining extreme events of 2013 from a climate perspective. Special Supplement to the Bulletin of the American Meteorological Society 95(9)
James, R., Otto, F., Parker, H., Boyd, E., Cornforth, R. Mitchell, D. and M. Allen (2014). Characterizing loss and damage from climate change. Nature Climate Change 4: 938-39
Mechler, R. Bouwer, L., Linnerooth-Bayer, J., Hochrainer-Stigler, S., Aerts, J., Surminski, S. (2014). Managing unnatural disaster risk from climate extremes. Nature Climate Change 4: 235-237
Peterson, T.C., Hoerling, M.P., Stott, P.A., Herring, S.C. (2013). Explaining Extreme Events of 2012 from a Climate Perspective. Bull. Amer. Meteor. Soc., 94: S1–S74. doi: http://dx.doi.org/10.1175/BAMS-D-13-00085.1
Trenberth, K.E., Fasullo, J.T., Shepherd, T.G. (2015). Attribution of climate extreme events. Nature Climate Change 5: 725–730. doi:10.1038/nclimate2657
This article gives the views of the author, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.
By Junko Mochizuki, IIASA Risk, Policy, and Vulnerability Program
Catastrophic natural disasters such as Typhoon Haiyan of 2013 and Thailand’s flood of 2011 have highlighted the need for improved preparedness and proactive planning in developing countries. As population and economic activities continue to grow in hazard-prone areas, the economic costs of natural disasters are expected to rise globally, threatening the prospects for poverty alleviation and sustainable development.
Workshop participants learn to use IIASA’s CATSIM tool.
Cambodia is no exception. Frequent natural disasters continue to strain the country’s meager fiscal resources. Flood-related expenditure in particular has increased in recent years. In 2013, the Ministry of Public Works and Transport, in charge of major road construction, diverted approximately 20% of its non-maintenance budget for recovery and reconstruction. Ministry of Rural Development, in charge of rural sanitation, health and agricultural projects, faces similar constraints. Some of the costliest disasters have occurred in recent years: the 2013 flood cost $1 billion and the 2011 flood $624 million in damage and losses. The World Bank recently estimated that the annual average expected cost of natural disasters in Cambodia is approximately 0.7% of GDP.
On June 10-11, I participated in an IIASA workshop on this topic in Phnom Penh, Cambodia, along with IIASA researcher Keith Williges. Our goal was to train Cambodian policymakers on the concept of disaster risk and need for better fiscal preparedness, using IIASA’s CATSIM model. Like many low-income countries, Cambodia’s ability to access resources through taxation and external loans is limited. Using CATSIM, policymakers can evaluate alternative options for preparedness including hazard mitigation and reserve fund and assess how further accumulation of economic assets may raise risk in the longer term.
In 2011, Cambodia experienced heavy flooding after strong typhoons and heavy rain. Photo credit: Thearat Touch EU/ECHO
Risk-based planning is still uncommon globally and particularly so in developing countries like Cambodia. Year after year, scarce resources are wasted because national and local policymakers do not have access to good risk information such as risk maps and timely weather forecasts. This could change, however, as detailed risk maps are becoming available and a new standard operation procedure for early warning system is now being prepared under this project. The CATSIM workshop has also familiarized policymakers with the concept of economic and fiscal risk of natural disasters.
While policymakers understand the potential costs rising from natural disasters, the real challenge is to link such risk information strategically. Without concrete advice on how risk maps can prioritize budget allocation, for example, it is unlikely that decision makers will change their old practice of non-risk based planning. In addition to quantifying and communicating economic, social, and environmental benefits of risk reduction and management, further barriers including financial, institutional and cognitive gaps must also be addressed. Bridging science with policy implementation requires strategic linking, and the CATSIM training marked an important first step for improved risk-based planning and co-production of knowledge in Cambodia.
By Reinhard Mechler, IIASA Risk, Policy, and Vulnerability Program
On March 25, member countries of the Intergovernmental Panel on Climate Change (IPCC) started discussing the key findings of the second volume of the Fifth Assessment Report (AR5) in Yokohama, Japan. The report focuses on climate-related impacts, risks and adaptation. Once approved by the 150+ governments present, together with IPCC’s other two parts of the report on physical climate science and mitigating greenhouse gases, it will constitute the scientific backbone for informing national and international climate policy over the coming years.
Flooded marketplace in Jakarta. Credit: Charles Wiriawan/Flickr (Creative Commons License)
A key aspect in climate adaptation is dealing with extreme events including natural disasters. It has become clear that extreme event risk constitutes a large part of the adaptation problem, particularly for developing countries and communities.
Despite this growing awareness, the international adaptation policy process is moving forward only slowly. Specifically, there is need for concrete advice for the Loss and Damage Mechanism, the main vehicle under the Climate Convention for dealing with climate-related impacts, which was agreed in Warsaw at the last Conference of the Parties in late 2013
In our commentary, published today in Nature Climate Change with colleagues from LSE, IVM and Deltares, we suggest that better understanding climate-related disaster risk and risk management can inform effective action on climate adaptation and point a way forward for policy and practice.
A key to moving forward is an actionable concept of risk. This involves identifying efficient and acceptable interventions based on recurrency of hazards—a concept known as risk layering. For example, for flood risk, this could mean identifying physical flood protection to deal with more frequent events, considering risk financing for infrequent disasters as well as relying on public and international compensation for extreme catastrophes. Risk layering overall points towards considering risk comprehensively as determined by climatic and non-climatic factors as well as considering portfolios of options that manage risks today and in the future.
The concept of risk layering underlies many areas of risk policy and management in agriculture, finance and insurance. It has been applied for disaster risks, mostly for insurance options, but not informed thinking on comprehensive risk management portfolios. Such broad understanding of risk management can also be helpful in identifying risks that are beyond adaptation–meriting international support, such as from the Green Climate Fund.
Climate risk management has now moved beyond theory. As one example, the megacity of Jakarta currently is setting up a multi-billion dollar program to manage increasing risk from sea level rise with large levees. This effort is integrated with a concern for managing flood risk and land subsidence, which are shaped by non-climatic factors, such as unplanned urbanization. The effort, therefore, involves options to implement acceptable building and zoning regulations for reducing exposure and vulnerability of houses and infrastructure to flooding.
Many policy-and implementation-specific questions remain. Over the coming months, IIASA researchers and our network will take the agenda on climate risk management forward with a focus on informing policy as well as providing actionable information on the ground.
Reinhard Mechler, Laurens M. Bouwer, Joanne Linnerooth-Bayer, Stefan Hochrainer-Stigler, Jeroen C. J. H. Aerts, Swenja Surminski & Keith Williges. 2014. Managing unnatural disaster risk from climate extremes. Nature Climate Change. March 26, 2014. http://www.nature.com/nclimate/journal/v4/n4/full/nclimate2137.html
Note: This article gives the views of the author, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.
Interview with IIASA risk expert Nadejda Komendantova
In a new study, IIASA Risk, Policy, and Vulnerability Program researcher Nadejda Komendantova and colleagues from Germany and Switzerland examined how natural hazards and risks assessments can be incorporated into decision-making processes in Europe on mitigation of multiple risks.
A cyclist rides along the flooded Danube River in Braila, Romania, in 2010. Credit: cod_gabriel on Flickr
Why did you decide to conduct this study?
European decision makers currently have a number of methods that they can use to assess natural hazards and risks and apply to the decision-making process. These methods include risk and hazard assessments, probabilistic scenarios, and socio-economic and engineering models. The variety of tools is enormous and volume of knowledge and data is growing. However, the process of communication between science and practice leaves a lot of open questions for research.
Researchers have developed a few tools to provide multiple risk assessment of a given territory. But even though these models have been tested by operational and practicing stakeholders, there is limited information about how useful the models are for civil protection stakeholders to use in practice. In order to communicate results from science to practice and make it possible for decision-makers to use such tools, it helps to involve decision-makers in the development process. Participatory modeling, which is an important part of risk governance, allows us to not only to take into consideration the facts, but also values and judgments that decision-makers bring to their actions.
What questions did you aim to answer in your study?
The decision-making process becomes even more complex when we talk about situations with multiple risks – multi-risks – which involve interactions between several risks. How will decision-maker will prioritize their actions on risk mitigation or on resources allocation when facing not single but multiple risks? We also wanted to find out if the tools developed by science such as decision support models could be suitable for these tasks. Another question is if there are differences in perceptions of the usability of decision-support tools between different stakeholders, such as academia (based on more theoretical considerations) and civil protection (based on practice).
What are the multiple risks or hazards that face Europe?
Across Europe, people suffer losses not just from single hazards, but also from multiple events in combination. The most important hazards for Europe are earthquakes, landslides, volcanic eruptions, tsunamis, wildfires, winter storms, and floods along both rivers and coastlines.
What methods did you use to conduct your study?
To answer our research questions we collected feedback from civil protection stakeholders on existing risk and hazard assessment tools as well as on the generic multi-risk framework to understand interrelations between different risks, such as conjoint and cascade effects. The new study was based on a method developed by Arnaud Mignan at ETH Zürich, with a decision-support tool developed by Bijan Khazai at the Karlsruhe Institute of Technology. Through a participatory approach, the decision-support tool allowed stakeholders to assign relative importance to the losses for different sectors for each of the scenarios likely to occur in the region.
We collected data through questionnaires on existing risk assessment tools in Europe and their implementation. Then, using the new framework, we conducted focus group discussions in Bonn and Lisbon, and decision-making experiments applying the developed tools. Afterwards we had a chance to collect feedback from stakeholders.
What did you find?
The study showed that general standards for multi-risk assessment are still missing—there are different terminologies and different methodologies related to data collection, monitoring, and output. According to stakeholders from practice, this variety of data, assessment methods, tools and terminology might be a barrier for implementation of the multi-risk approach.
The study also found a sharp divide in understanding of the usability of the tools and areas for their application. Academic stakeholders saw the risk-assessment tools as being useful to understand loss and communication of multi-risk parameters. The stakeholders from practice instead saw the tool as more useful for training and educational purposes as well as to raise awareness about possible multi-risk scenarios.
What should be done to help decision-makers make better decisions?
The study made it clear that we need to work on training and education, both for policymakers and the public. The models we have developed could be useful for educating stakeholders about the usefulness of a multi-risk approach, and to disseminate these results to the general public. It was recommended to use the tools during special training workshops organized for decision-makers on multi-risk mitigation to see possible consequences of a multi-hazard situation for their region. Participatory modeling, involving cooperation between scientists and decision-makers from practice, could not only improve communication processes between science and policy. In addition, decision-support models can become a part of dialogue to help to avoid judgment biases and systematic errors in decision-making and to help in complex decision-making process grounded on human rationality and judgment biases.
Nadejda Komendantova, Roger Mrzyglocki, Arnaud Mignan, Bijan Khazai, Friedemann Wenzel, Anthony Patt, Kevin Fleming. 2014. Multi-hazard and multi-risk decision support tools as a part of participatory risk governance: Feedback from civil protection stakeholder. International Journal of Disaster Risk Reduction. http://www.sciencedirect.com/science/article/pii/S221242091300068X
Note: This article gives the views of the interviewee, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.