Climate Risk Management in Finnish Development Cooperation - Gaia

Appendix
Annex I. Ethiopia Climate Change Implications for Finland
Climate change is one of the central challenges facing humanity in the 21st century. The way in
which we will address it will have profound implications for human development in different parts of
the planet.
This annex studies some of the climate challenges that Ethiopia is already facing and what the
implications could mean for Finland. The cases, which are looking at the potential implications
through trade, security, conflict and human displacement interlinkages highlight the urgent need to
strengthen the adaptive capacity of a country such as Ethiopia in view of on-going and still
accelerating climate change.
While pointing out several important interlinkages that have to be taken into account in Ethiopian
and Finnish-Ethiopian development efforts, the cases provide a strong argument for keeping the
focus of developed countries in particular, and the more advanced developing countries, on
immediate and considerable climate mitigation efforts – adaptation is necessary but only part of a
sustainable long-term solution.
Climate change and trade
Introduction
In order to assess impacts of climate change to a country’s economy, it is necessary to have
estimates of the impacts and costs of climate change (be it gradual temperature increases, changed
precipitation patters, increased climate variability or weather extremes) on different socio-economic
activities. In many countries information (qualitative and quantitative) on costs is not readily
available. In particular in developing countries climate data on observed climatic changes is rarely
recorded in a consistent manner over time, and where it exists it is often in a form that requires
additional work before it can be used.
However, certain overall trends and requirements for socio-economic transformations, due to
climate change and policy responses thereto, can be identified. Climate change will have
implications for economic activities through production, consumption and international trade.
Climate change may hinder economic growth and thereby also worsen poverty and social instability
(see more on climate change and conflict in Chapter 2). Figure 1 presents how greenhouse gas
emissions create socio-economic impacts. Responding to climate change will require a fundamental
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