HFFA Research was subcontracted by the Potsdam Institute for Climate Impact Research (PIK) to participate in the AGRICA project. As indicated by the project’s name – combining the words “agriculture” and “Africa” – the aim of the AGRICA Climate Project was to analyse climate change impacts and adaptation options for the agricultural sector in Sub-Saharan Africa. Following a report on Ghana, the focus was now on the East African country of Ethiopia.

The project’s goal was to create a baseline of projected climate change risks and impacts on the agricultural sector of Ethiopia. Furthermore, the costs and benefits as well as the feasibility of certain adaptation options was assessed. This facilitated government and other stakeholders to effectively develop investment strategies for climate change adaptation and to optimize the allocation of resources. A better understanding of the specific costs and benefits of their adaptation options can help countries gain access to international climate finance as well as public and private investments – which are crucial for the successful implementation of adaptation measures, and for pursuing a climate resilient transformation of the agricultural sector.

Within the AGRICA project our work concentrated on the cost-benefit analysis of certain adaptation options for Ethiopia, such as irrigated fodder banks or planting new crops or crop varieties. Therefore, we quantified the costs and benefits of adaptation action and non-action. In this context, while adaptation action means that farmers will implement certain measures (for which they will incur certain costs in order to avoid other costs – which are often climate related), adaptation non-action refers to the scenario where farmers do not apply any adaptation measures.

For more detailed information on this project, please have a look at the PIK project-website or contact us directly.

The full version of the study can be downloaded on the PIK website.