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Economic assessment of the impacts of climate change in Uganda

Project Reference: TAAF-0035a

With 80% of Ugandans dependent on rain-fed agriculture, which comprises over 60% of export earnings, the country is highly vulnerable to climate change. Recent erratic and unseasonal rainfall has already cost over US$60 million a year in crop losses.

Previous assessments of the economic impacts of climate change have proven to be catalysts for increased attention to and investment in addressing climate change, spurring significant progress in policy development. This study will inform and help shape the roll-out of Uganda’s National Climate Change Policy by directing investments where they are most needed to safeguard the Ugandan economy from the adverse impacts of climate change.

The project team is led by Baastel and includes Makerere University, Metroeconomica, and the Centre for International Development and Training at the University of Wolverhampton.

The project will develop an economic model, disaggregated at the national, sectoral and district levels, to assess the economic impact of climate change on climate-sensitive sectors and areas of the economy. The results of the economic assessment will feed into the decision-making process around budgetary allocations to help direct resources to sectors and districts most at risk to climate change. Knowledge dissemination to decision-makers will be an important aspect to raise awareness of the economic case for investment in climate compatible development policies in Uganda.

The key project activities include:

  • Undertaking consultations with relevant Ministries and stakeholders to refine the scope of the study.
  • Developing a conceptual framework on the economic assessment.
  • Developing /adapting an economic model using the most advanced, proven and appropriate techniques.
  • Developing 5-6 case studies of the economic impacts of climate change at the district-level.
  • Identifying relevant climatic and economic data and calculating the economic impact of climate change on identified key sectors.
  • Documenting the analysis, including the economic model developed, the methodology and the results.
  • Carrying out policy dialogues and stakeholder consultations on the findings and implications of the assessment

This project will build upon CDKN’s on-going experience and learning in Nepal and the Economic Impact Assessments of Climate Change in Nepal project.

Read the fact sheets on Uganda’s Economic assessment findings:

Uganda fact sheet on Energy

Uganda factsheet on Agriculture

Uganda factsheet on Infrastructure

Uganda factsheet on Water

Funding: £350,000
Timeframe: December 2013 – June 2015
Project Manager: Karen Sutherland


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Project Highlights