Chapter 4: A ‘No-Regrets’ Risk-Based Approach to <strong>Climate</strong> Proofing Public <strong>Infrastructure</strong>D E F I N I T I O N SVulnerabilityThe characteristicsand circumstances of acommunity, system or assetthat make it susceptible to <strong>the</strong>damaging effects of a hazard.Disaster Risk=Natural Hazard xVulnerability-CapacitySource: <strong>UN</strong>ISDR (2009a)Natural hazardA natural process orphenomenon that may causeloss of life, injury or o<strong>the</strong>rhealth impacts, propertydamage, loss of livelihoodsand services, social andeconomic disruption, orenvironmental damage.Source: <strong>UN</strong>ISDR (2009a)6There are different definitions ofvulnerability in <strong>the</strong> literature (Alwang etal., 2001; Adger, 2006). Vulnerability = f(risks, exposure and sensitivity, capacity)is ano<strong>the</strong>r way to express vulnerabilityand risks. Not surprisingly, <strong>the</strong>re is a gooddeal of confusion about use of <strong>the</strong>seterms. The differences are more semanticthan real and both approaches try tounderstand <strong>the</strong> causes of vulnerabilityand how to reduce it. It is importantto identify <strong>the</strong> complementarities tofacilitate better communication andcooperation between practitionersworking on natural disasters, climatechange, and social protection.7Sometimes capacity is omitted from<strong>the</strong> equation and may be considered adimension of vulnerability.8In most cases, it is difficult to preventnatural hazards; however, withclimate change, <strong>the</strong>re are actionslike CO2 emissions related to humaneconomic activities that can influenceconcentrations of GHGs and <strong>the</strong>rebyincrease or decrease some hazards.9See Benson and Twigg (2007) <strong>for</strong> anexcellent overview of all <strong>the</strong> steps. Manyof <strong>the</strong> references include examples ofprobabilistic risk modeling (e.g. ADB,2005; CAPRA Workshop, 2008; Larsen andGoldsmith, 2007; Larsen, et al., 2007; IDB,2008; Canadian Council of ProfessionalEngineers, 2009; Fleischhauer, 2009; Gill,et al., 2009; Yamin, et al., 2009; Lapp, 2010;White, 2010)Conceptual framework <strong>for</strong> climate proofing infrastructureRisk-vulnerability chainLosses from natural disasters and climate change are not just related to hazard events, but to <strong>the</strong> underlyingeconomic, social and environmental conditions in a specific location. The availability of local capacity(including institutions, building codes and standards, and en<strong>for</strong>cement capacities) is key to managedisaster risks. The risk-vulnerability chain conceptualizes <strong>the</strong> relationship between hazards, vulnerability,risk management arrangements and risk-related losses. The risk-vulnerability chain can be summarized as: 6Disaster Risk = (Natural Hazard x Vulnerability) – DRM and <strong>CC</strong>A CapacityThis paper applies <strong>the</strong> above equation and <strong>UN</strong>ISDR terminology (see <strong>UN</strong>ISDR, 2009a) to provide a consistentset of terms. Thus, disaster risk (<strong>the</strong> probability of losses) is a function of a hazard (probability of anadverse event), vulnerability (<strong>the</strong> exposure and susceptibility of assets and livelihoods to hazards), andcapacity (<strong>the</strong> <strong>for</strong>mal and in<strong>for</strong>mal institutional, legal, political, social and cultural networks that can helplessen <strong>the</strong> negative impacts of [hazard x vulnerability]). 7The characteristics of a specific hazard in terms of severity and <strong>the</strong> exposure and sensitivity of assets andlivelihoods to <strong>the</strong> hazard determine expected losses. Households, communities and governments (local,state, national) utilize risk management strategies that are ei<strong>the</strong>r ex ante (prevention, reduction, compensatoryarrangements such as savings or insurance), or ex post (coping) actions that may be ad hoc orplanned responses. 8 Risk, <strong>the</strong> probability of a loss of well-being, depends on <strong>the</strong> hazards, exposure andsensitivity, expected impacts and losses, and ex ante and ex post risk management strategies that attemptto reduce vulnerability, increase capacity, and lessen <strong>the</strong> negative impacts from damages/losses to assetsand livelihoods. Probabilistic risk models attempt to quantify probabilities <strong>for</strong> <strong>the</strong> various componentsof <strong>the</strong> risk-vulnerability chain, and are used as a decision-making tool <strong>for</strong> climate proofing infrastructure.Risk Assessment = Hazard Assessment + Vulnerability Assessment + Capacity Assessment 9Risk Assessment: This is a method to determine <strong>the</strong> nature and extent of risk by analysing potentialhazards and evaluating existing conditions of vulnerability that could pose a potential threat or harm topeople, property, livelihoods and <strong>the</strong> environment. Risk assessments (and associated hazard and vulnerabilityassessments) include a review of <strong>the</strong> technical characteristics of hazards such as <strong>the</strong>ir location, intensity,frequency and probability; <strong>the</strong> analysis of exposure and vulnerability including <strong>the</strong> physical, social,health, economic and environmental dimensions; and <strong>the</strong> evaluation of <strong>the</strong> effectiveness of prevailingand alternative coping capacities in respect to likely risk scenarios. It is also important to take <strong>CC</strong>A andDRM capacity to manage risks into account.Hazard Assessment: This involves evaluating and ranking potential hazard events by <strong>for</strong>ecasting <strong>the</strong>irfrequency and intensity, and determining a range of possible scenarios over time. One of <strong>the</strong> most challengingaspects of hazard assessments under climate change is <strong>the</strong> divergence of predictions by differentmodels, and <strong>the</strong> lack of local data (from downscaled climate models) that can be used <strong>for</strong> modeling <strong>the</strong>future. In most cases, hazards are exogenous in that <strong>the</strong>y are external events not easily influenced bydecision-making.20<strong>Paving</strong> <strong>the</strong> <strong>Way</strong> <strong>for</strong> <strong>Climate</strong>-<strong>Resilient</strong> <strong>Infrastructure</strong>: Conference Proceedings
PART IChapter 4: A ‘No-Regrets’ Risk-Based Approach to <strong>Climate</strong> Proofing Public <strong>Infrastructure</strong>Vulnerability Assessment: There are many aspects of vulnerability, arising from various physical, social,economic, and environmental factors. Examples may include poor design and construction of buildings,inadequate protection of assets, lack of public in<strong>for</strong>mation and awareness, limited official recognition ofrisks and preparedness measures, and disregard <strong>for</strong> wise environmental management. Vulnerability variessignificantly within a community and over time. Vulnerability broadly includes exposure and sensitivity ofassets and livelihoods, which can be changed by policy makers and planners.Capacity Assessment: Policies and institutional structure and context are major factors <strong>for</strong> increasingresilience. Clearly, capacity can be influenced by policy makers and planners, and by o<strong>the</strong>r investments.Capacity includes technical competence of individuals and <strong>the</strong> functioning of institutions individually andin tandem, and it also includes inter-institutional dynamics, functioning of markets (including differentfinancial and insurance products). This includes persons and institutions directly and indirectly involvedwith <strong>CC</strong>A and DRM.Figures 4.1 and 4.2 provide a schematic presentation of <strong>the</strong> risk-vulnerability chain in <strong>the</strong> context of probabilisticrisk modeling (see Annex 4 <strong>for</strong> details about <strong>the</strong> Central American Probabilistic Risk Assessment(CAPRA) as an example of probabilistic risk modeling). In Figure 4.1, capacity is not a separate component,but is included in vulnerability. In fact, <strong>the</strong>re is considerable overlap between vulnerability and capacity,and in many cases <strong>the</strong> risk vulnerability chain is based on Risk = Hazard x Vulnerability. However, becauseof <strong>the</strong> importance of capacity, and <strong>the</strong> fact that it can be conceptually and analytically separated fromvulnerability, it is best to disaggregate vulnerability and capacity.<strong>Climate</strong> change models <strong>for</strong>ecast more intense hurricanes and flooding in some parts of El Salvador andgreater droughts in o<strong>the</strong>r parts. Four aspects of storms are particularly important <strong>for</strong> infrastructure: rainfall,winds, coastal storm surges and floodwaters. Stronger storms have longer periods of rain, higher windspeeds, higher coastal storm surges and greater flooding. <strong>Infrastructure</strong> designers, planners and operatorsshould use probabilistic models and revise codes and standards, instead of relying on <strong>the</strong> deterministicmodels used in <strong>the</strong> past and existing codes and standards. The uncertainty associated with projectingimpacts over 20- or 50- to 100-year time horizons makes probabilistic models an important method <strong>for</strong>incorporating climate change into decision-making processes. The key is to model and understand <strong>the</strong>implications of long-term climate change and determine an optimal combination of no-regrets, low-cost/co-benefit, high-cost priority actions.‘‘ There is a menu of<strong>for</strong>mal and in<strong>for</strong>malinstruments, and nosingle instrument offerscomplete protection.The key is identifyinginstruments thatare appropriate <strong>for</strong>given hazards andvulnerabilities in<strong>the</strong> context ofimmediate risks.’’<strong>Climate</strong> change adaptation and DRM comprise a wide range of strategies and actions at <strong>the</strong> household,community, local, national (and possibly international) levels, aiming to prevent hazards from occurringand/or reducing <strong>the</strong>ir negative impacts. There is a menu of <strong>for</strong>mal and in<strong>for</strong>mal instruments, and no singleinstrument offers complete protection. The key is identifying instruments that are appropriate <strong>for</strong> givenhazards and vulnerabilities in <strong>the</strong> context of immediate risks. Capacities in a specific location should bedeveloped or streng<strong>the</strong>ned in <strong>the</strong> context of long-term climate change to address vulnerabilities andboost resilience. <strong>Climate</strong> change adaptation and DRM strategies include a broad range of interventionsto increase resilience (e.g. engineering design and construction, building codes and standards, insurance,ecosystem management, emergency response), embedded within a holistic suite of capacity and institutional-streng<strong>the</strong>ningef<strong>for</strong>ts that can protect and streng<strong>the</strong>n assets and livelihoods. These strategies andmeasures eventually help society to manage impending risks.<strong>Paving</strong> <strong>the</strong> <strong>Way</strong> <strong>for</strong> <strong>Climate</strong>-<strong>Resilient</strong> <strong>Infrastructure</strong>: Conference Proceedings 21