B. Address Climate Risks
Addressing climate risks entails identification of measures to manage risks.
USAID guidance requires climate risks rated as moderate or high to be addressed. Addressing climate risks rated low is optional. USAID’s CRM Tool can help assessment teams select the most feasible and cost-effective CRM measures for project design and implementation.
Assessment teams have two options for addressing moderate and high risks:
- CRM measures can be integrated in project design.
- CRM measures can be identified through additional analyses or in further steps taken before or during activity design and implementation.
USAID guidance states that, after consideration of tradeoffs, assessment teams also can recommend accepting the risk(s). By accepting a risk, the assessment team acknowledges that it could not identify a feasible way to manage a climate risk that could negatively affect project results.
Importantly, based on the climate risks, the project design team can choose to change the scope or location of the project, or for unknown locations add conditions, prior to implementation of the project to reduce or avoid climate risk.
Regardless of the method used to address risks, design teams must include assessment results in project appraisal documents (PADs) and environmental compliance analyses.