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Assessing the Economic Impacts of Climate Change


UNDP promoted the findings in a study “Assessing Economic Impacts of Climate Change”- National Case Studies focused on three cases: Energy Demand for Space Heating and Cooling; Mavrovo Hydropower Plant System; and Pelagonia Valley and Strezevo Irrigation Scheme. 

The study investigates three major sectors: energy demand, water resources related to electricity production and agriculture. Case studies are used in each sector to indicate the trend of economic impacts of climate change. In doing so, the study intends to pave the way for more in-depth examinations of climate change that will be able to link the physical impacts of climate change to economic impacts. Having a better idea of the economic impacts will make it possible to then better assess options for becoming more climate-resilient.

“Climate change is one of the defining challenges of our times. We have just seen the global community gather in Durban for the complex and difficult negotiations on this issue. When it comes to climate change its not actually a long distance between Durban and Skopje. In Durban the subject was how to control climate changes, here in Skopje is how to adapt to climate changes”, stated the Ms. Deirdre Boyd, UN Resident Coordinator/ UNDP Resident Representative.

The study was carried out predominantly by national experts and institutions with assistance of international experts engaged by UNDP.  The United Nation Development Programme expects that this study to serve for two purposes. First, to help to build national capacity for improved and refined analysis in the coming period, and second, will contribute to the national dialogue about the links between development and climate change, and serve as food for thought as the country seeks to take concrete steps to pursue a course of green, low-emission climate-resilient development

“These studies are necessary to get a qualitative understanding of the impact that the climate changes has on economy. In the case of Macedonia, in the future we will face repercussions in several economic sectors, especially in agriculture and energy” stated Deputy Prime Minister Vladimir Pesevski, adding that “The Government supports the efforts done for this study, and for sure the results will be taken into consideration for the future economic policies”

At the presentation of the Study the audience was addressed also by the Minister of Environment Abdilaqim Ademi; Minister of Economy Valon Saraqini; and Minister of Agriculture Ljupco Dimovski.

This study is part of an ongoing UNDP effort to develop the analytical and institutional capacity of countries in transition to estimate the economic impacts of climate change and identify areas where adaptation may be necessary.

After public presentation of the study, a public debate was held, gathering together experts who prepared the study and representatives of the ministries from the relevant sectors, in order to discuss the key-findings from the study and seek for optimal cross-sectoral solutions.

The authors of the Study are: John M. Callaway, PhD; Natasa Markovska, PhD; Ordan Cukaliev, PhD; Dragan Gjoshevski, PhD; Anton Causevski, PhD; Sofia Nikolova, MSc; and Verica Taseska, MSc