Stage 4.4 Discuss & confirm adaptation options & parameters for CBA

Who's Involved
  • Workshop participants, facilitated by Assignment Management Team
Timing and time required
  • During ‘Climate risk management and cost-benefit analysis’ workshop
  • 3.5 hours
Key questions
  1. What are the options to achieve the agreed objective?
  2. What are the components of each option?
  3. What are the financial, social and environmental parameters (costs and benefits) associated with each option?
  4. How will climate change affect each of the options?
  5. Which parameters should be included in the CBA?
Tools
  • Checklist of potential parameters
Guidance
  1. Approximately 5 to 8 distinct options need to be developed in discussion with workshop participants.
  2. The options may achieve the objective in different ways.
    • For instance, if the objective of the CBA is to address the question: ‘What is the optimal approach to supply the shortfall in energy that is caused by climate change?’ then the options could be a diverse range of new energy generation assets, opportunities for regional energy trade, and ways of reducing energy demand.
  3. Options should be generated through discussion which range from ‘Business-As-Usual’ through to novel or far-fetched ideas. Only an outline of the options is required at the workshop.
  4. It is important to agree with participants the financial, social and environmental parameters against which the options will be appraised. These may include:
    • Capital and Operational Costs (CAPEX and OPEX)
    • Energy and fuel pricing
    • Value of water
    • Greenhouse gas emissions
    • Land value
    • Disturbance/ relocation of people
    • Ecological value
  5. Other parameters to be agreed for the CBA include:
    • The time horizon over which the assessment is to based
    • Discount rate and Internal rates of return to be considered (ranges can be used).
Outputs
  • Summary description of options for CBA and parameters