Macroeconomic modelling for climate resilient economic development (CRED) bridges the gap between economic planning and climate adaptation policies. By assessing the long-term economic effects of climate risks and adaptation measures, the tool provides additional information for decisionmakers on how to prioritise investments in adaptation. Thus, decisionmakers can compare different adaptation options with a view to reduce economic risks from climate change. The tool allows to analyse economy-wide impacts (e.g. on GDP, employment) of (1) different climate hazards on the infrastructure sector and (2) different resilient infrastructure options as adaptation measures. If a country does not yet have a macroeconomic model of climate risks, GIZ’s CRED approach can be used to develop such a model or preferably expand existing national models.
Lifecycle Phase(s): Strategic PlanningPublic authorities identify the needs and long-term vision for infrastructure development., PrioritizationAuthorities decide which projects to realize and how to allocate resources., Project PlanningGeneral strategy for a project’s delivery is developed., FinanceDevelopers decide how to pay for their project.
Type(s) of Tool: Economic / Financial ValuationsAnalyses the economic/financial value and risks related to projects., Modelling ToolsSimulate economic, social, and physical systems to help planners optimize outcomes from different decisions., Impact AssessmentsEvaluate the impacts of assets or policies on the environment and local livelihoods.