Economic assessment of climate change

Specific Challenge: Policy makers face societal and economic challenges when addressing climate change, including the need to bring climate action into the wider agenda of economic welfare and sustainable development. Decision-making processes require robust estimates of the costs and benefits, as well as risks and opportunities associated with different mitigation pathways against a background of uncertainty about the future climate and its impacts. It is also necessary to explicitly address the links between the development of low-emission and climate-resilient strategies and other policies to promote sustainable development, and to understand how both the mitigation of and adaptation to climate change is connected to issues such as eradication of energy poverty, increased well-being and welfare, air quality improvement, technology innovation, and food and water availability. To respond effectively to climate change and simultaneously meet sustainable development goals, radical transformations are needed to enable the transition to a clean, low-carbon, sustainable and resilient society, at the national, regional and global levels.

Scope: Proposals shall address the following:

Developing a comprehensive economic assessment of climate change. The assessment should consider different mitigation and adaptation strategies, focusing on the low-carbon transformation of the economy, and evaluate as well the costs of inaction. Actions should quantify the costs, benefits and risks of different technological and societal transitional changes of the energy system, examine the impacts on green growth, innovation dynamics, job creation and social cohesion, and develop tools and methodologies in support of evidence-based decision making.

The Commission considers that proposals requesting a contribution from the EU of between EUR 6 and 8 million would allow this specific challenge to be addressed appropriately. Nonetheless, this does not preclude submission and selection of proposals requesting other amounts.

Expected impact:

Support for technological, institutional and socio-economic innovation in the area of climate action. Reduction already in the short-term of the uncertainties in assessing and computing the costs, benefits and economic values of mitigation options. Facilitation of EU[1] and global climate policy goals and mainstreaming of climate change mitigation options across multiple scales and sectors, providing scientific underpinning for the implementation and review of the 'Roadmap for moving to a low-carbon economy by 2050'[2]. Contribution to major international scientific assessment (e.g. IPCC).

Type of action: Research and innovation actions

[1]     http://ec.europa.eu/clima/policies/brief/eu/index_en.htm

[2]     COM (2011) 112