Cost-Benefit Analysis of Adaptation Measures in Germany

Due to the changing climate, cities and local administrations in particular must decide how they will implement climate adaptation measures. One instrument to support such local and regional decision-making processes is the cost-benefit analysis. Jenny Tröltzsch presented to and discussed Ecologic Institute's recent study results with participants from the Finnish project "Climate-Proof City – Tools for Planners."

On 23 May 2013, Ecologic Institute invited 15 representatives from four Finnish cities and other institutions to discuss the results of cost-benefit analyses of adaptation measures. The presentation was part of the representatives' two-day working visit to Berlin.

Over the last three years, Ecologic Institute prepared different studies on the topic of adaptation cost-benefit analysis at the EU level (supported by the EU Commission, DG Climate), national level (for the German Federal Environmental Agency), and local level (for the City of Hamburg).

The results show that some measures can be especially recommended, e.g.:

• Soft measures, like information campaigns and warning systems,
• Green measures on regional/urban planning regarding flood protection or protection against flash floods, i.e., establishing natural retention or infiltration areas, and
• Adaptation of rail and road infrastructure projects, if investment can be integrated into regular maintenance cycles.

Furthermore, the results demonstrate that a cost-benefit analysis can be an important instrument for the evaluation of climate adaptation measures. The analysis should be accompanied by further criteria, such as the relevance, urgency, and no-regret/regret-potential of measures. Additionally, a local and regional assessment of costs and benefits is recommended.

The discussion focused on experiences with using the assessment results at the local and national levels, use of the criteria set, and possibilities for monetizing the effects of measures.