Published by
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)

Methodological approach towards the assessment of simulation models suited for the economic evaluation of mitigation measures to facilitate NDC implementation

Following the 21st session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC), 195 countries adopted the Paris Agreement, which establishes a global action plan to put the world on track to avoid dangerous climate change by limiting global warming to well below 2°C. A core element of the Agreement is the implementation of Nationally Determined Contributions (NDCs) which will transform existing economies into low carbon economies.

The implementation and also preparation of NDCs represents a tremendous challenge for all parties to the Agreement, who need to undertake detailed economic analysis of the mitigation options available at national, regional and local level, including modelling likely costs, impact and rate of adoption of sector specific, cross sectoral and general mitigation measures. The resource requirements can be particularly challenging for developing countries and emerging economies. It is against this background that the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in a cooperation with the Environmental Ministry of Mexico (SEMARNAT) and the National Institute for Ecology and Climate Change (INECC), based on the more general information provided by the NDC-Partnership, set the objective to develop a methodology that allows to narrow down the tremendous choice of simulation tools for the analysis of mitigation options according to criteria faced in particular by developing and emerging countries so that NDC-preparation as well as NDC-implementation can finally be facilitated also from an analytical perspective.

The aim of this study was to evaluate and compare a selection of the available tools for economic analysis of a set of mitigation measures, and to produce an overview of their capabilities that will inform model / tool selection in terms of the specific needs and available resources of developing countries.