Evaluation of Interventions for Climate Change Adaptation: Instruments for Managing Residual Climate Risks

In order to cope with increasing residual climate risks, German developmen cooperation uses a range of instruments including risk preparedness, risk finance and transformative risk management. The focus here is on risk finance, and in particular the instrument of climate risk insurance. In light of the results of the evaluation, German development cooperation should increase its funding for managing residual climate risks.

Climate risk insurance is a focal area of German development cooperation. However, climate risk  insurance interventions are in many cases not a priority of the partners and target groups. If the priorities of the partner countries and the needs of the target groups were given greater consideration when designing the insurance solutions, their relevance could be increased. Combining them with other instruments would also increase their effectiveness To this end, the existing German approach to comprehensive risk management should be further developed.

Transformative risk management interventions, for example involving human mobility in the context of climate change, have so far been implemented only sporadically. Long-term, sustainable approaches for transformative risk management are lacking. Against this background German development cooperation should expand the portfolio for addressing human mobility in the context of climate change as a crucial component of transformative risk management.

The evaluation was completed in 2021. This is a summary of the results and recommendations; you can find the complete results and recommendations in the report.