Understanding cost-benefit analysis for adaptation options in Uganda

27-29 November 2018, Kampala, Uganda – One of the key objectives of the joint FAO-UNDP Integrating Agriculture in National Adaptation Plans Programme (NAP-Ag) is to build technical capacity at the national level on the use of cost-benefit analysis (CBA) tools to guide evidence-based investment decisions in agriculture based on quantitative methods. The use of these tools will enhance national capacity to reach the Sustainable Development Goals and Nationally Determined Contributions to the Paris Agreement, and are an essential building block in working toward a low-carbon, climate-resilient future.

The programme also helps countries to mainstream the use of such economic tools in their budgeting and decision-making process. With that aim in mind, FAO and UNDP organized a three-day CBA training workshop to support Uganda in these efforts.

The training focused on the practical use of CBA methodology applied to adaptation options in agriculture. The participants, including officers and technical staff from several ministries as well as national experts from research organisations, were introduced to the basic theoretical concepts of CBA as well as practical examples on how cost-benefit analysis can reinforce decision-making processes and facilitate evidence-based selection of adaptation options.

Among the topics addressed during the workshop were: i) CBA and adaptation in the context of NAPs; ii) financial analysis; iii) farm budgets; iv) economic analysis; v) aggregation of benefits and practical examples of a full economic analysis; vi) uncertainty and sensitivity analysis; and, vii) practical applications of CBA for climate change adaptation in development projects.

The workshop featured interactive presentations and discussions to gain a deeper understanding of the NAP process for climate resilience and sustainable development. Theoretical sessions were alternated with practical exercises to foster deeper learning and a more conducive and participatory learning environment. Participants were also actively engaged in plenary discussions on key CBA topics and on issues related to the best use of public resources. The exercises actively engaged with participants to work within the methodology, improve analytic skills and enhance computing skills.

The CBA workshop took place simultaneously with the official launch of the Uganda National Adaptation Plan (NAP). By connecting these pieces, government officers, field technical staff, planners and project formulation officers, actively engaged in the implementation of the NAP, will have the opportunity to put new skills and knowledge in cost-benefit analysis into practice in their daily work.

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Last Updated: 24 Jan 2019