Climate Policy Simulation Tool (CPST) brainstorming meeting

Purpose/Background
The Asian Development Bank and the Government of the Republic of Korea (ROK), through the Korea International Cooperation Agency (KOICA), co-financed the implementation of the technical assistance (TA) on the Economics of Climate Change and Low Carbon Growth Strategies in Northeast Asia, covering Japan, Mongolia, People’s Republic of China and ROK.

The TA intends to enhance the resilience to climate change risks in Northeast Asia. Its expected outcome is to provide an improved understanding of the economics of climate change to enable policy makers in the region to initiate climate mitigation and adaptation actions. Specifically, the TA seeks to:

Contribute to the regional debate on economic costs and benefits of unilateral and regional actions on climate change mitigation and; raise awareness about the urgency of climate change challenges;  and indirectly support government and private sector actions in the region for low carbon development strategies.

To realize these objectives, the following key activities are being undertaken under the TA: modeling of climate change; impact assessment, adaptation analysis, mitigation analysis and economic analysis through scoping and literature review of existing climate change studies, regional consultations and national workshops, and country analysis; and formulation of policy options to address climate change challenges at the national and regional levels based on the findings of the climate change modeling, scoping and literature review, regional consultations, and national workshops and country analysis. A CPST will be developed for the policy formulation phase of the TA.

The CPST is a tool that will be used in developing key economic indicators to show the economic consequences of different packages of climate policies and conduct quantitative and qualitative assessment of different climate policy packages. This tool will help policy makers in selecting concrete and appropriate combination of climate and economic policies that will adapt and respond to different policy scenarios for each participating country.

Objectives
The Meeting aims to come up with:

• Draft CPST plan presented and commented on;
• Core parameters for the simulation tool identified (key socio-economic indicators, GHG emission/reduction parameters; and
• CPST design (methodology and model).