1. IEc INDUSTRIAL ECONOMICS, INCORPORATED Proposed Methodology and Action Plan to Develop the Impact Assessment and Menu of Adaptation Options for Uzbekistan James Neumann Principal May 19, 2010

2. INDUSTRIAL ECONOMICS, INCORPORATED2 Overview Objectives of the study Introduce the Industrial Economics team of consultants (see Handout 1) Key Steps in the Process (see Handout 4) Initial Mission Impact Assessment of Climate Change on Agriculture Initial stakeholder consultations Capacity Building Workshop(s) Develop Initial Menu of Adaptation Options Second stakeholder consultations and National Workshop Goals for this visit

3. INDUSTRIAL ECONOMICS, INCORPORATED3 Objectives of the Study “Enhance the ability of four countries in Europe and Central Asia (ECA) to mainstream climate change adaptation into agricultural policies, programs, and investments.” The four countries are: Albania Moldova Macedonia Uzbekistan Strategies used: raising awareness of the threat analyzing potential impacts and adaptation responses building capacity among national and local stakeholders A key product of consultant team’s work is a menu of adaptation measures for crop and livestock production sector.

4. INDUSTRIAL ECONOMICS, INCORPORATED4 Key Staff of the Industrial Economics Consulting Team James Neumann, IEc, Project Manager Kenneth Strzepek, Univ. Colorado and MIT, Technical Director Ana Iglesias, Univ. of Madrid, Agronomist and Crop Modeler Peter Droogers, FutureWater, Crop and Water Resources Modeler Janusz Kindler, Warsaw University of Technology, Water Resources Expert Richard Adams, Oregon State Univ. and Brent Boehlert, IEc, Agricultural Economists Samuel Fankhauser, Grantham Research Institute on Climate Change and the Environment, Economist & Expert Reviewer Andrew Schwarz, IEc, Participatory Process Expert

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6. 6 Initial Mission Learn from you about the Uzbekistan context: What are the key crops and livestock? Which of these seem particularly vulnerable to climate change? What has been done so far to respond? What major policies are under consideration? Identify data to support the modeling studies Identify key people and institutions to coordinate and jointly conduct the study Concludes with a detailed Inception Report and Data Request

7. INDUSTRIAL ECONOMICS, INCORPORATED7 Impact Assessment of Climate Change on Agriculture Climate Projections – three scenarios from among the 56 IPCC AR4 GCM options Crop Modeling – Process-based models (e.g., AquaCrop) for select crops Water Resource Availability “Screening Tool” – CLIRUN – projects runoff for key basins Basin-level Water Modeling – WEAP for one or two large basins in each country

8. INDUSTRIAL ECONOMICS, INCORPORATED8 Dimensions of the Impact Assessment Geographic Scope: Agro-ecological zone, with representative crop modeling for each region. Crops: Selected field crops/cereals, vegetables, fruit and nut trees, fiber crops – also livestock focus. Future Climate: Three future climate scenarios, wet/median/dry, reflect the range of GCM outcomes at the country level. Time: Decadal averages from 2010 to 2050 (i.e., 2015, 2025, 2035, 2045) Economic Baseline: current conditions/markets with FAO projections of market prices through 2050.

9. INDUSTRIAL ECONOMICS, INCORPORATED9 Example of a Water Model Interface (WEAP)

10. INDUSTRIAL ECONOMICS, INCORPORATED10 Capacity Building Workshop Conduct a formal training workshop at a central location for a specific impact assessment technique. Candidates include: Process-based crop modeling (e.g., AquaCrop) Screening tools for crop and water assessment (e.g., CLIRUN, CLICROP) Basin-level water resources modeling (e.g., WEAP)

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12. INDUSTRIAL ECONOMICS, INCORPORATED12 Stakeholder Consultations Conducted in each AEZ, two sets of meetings At first meeting, present draft impact results for crop yields and water availability under climate change. Then, ask: Experts/analysts: Do the crop, livestock, water modeling results look reasonable to you? Farmers: What options would you employ in response to these outcomes? What other ideas do you have?

13. INDUSTRIAL ECONOMICS, INCORPORATED13 Develop Initial Menu of Adaptation Options Take results of impact assessment and stakeholder consultations. Generate farm-level estimates of net benefits of adaptation options, using readily available data and FAO price projections Rank initial set of adaptation options based on net benefit criteria Add a second, qualitative ranking based on the recommendations of our expert team Experts will also add country-level policy options (e.g., changes to water allocation scheme) to the menu

14. INDUSTRIAL ECONOMICS, INCORPORATED14 Overview of Approach

15. INDUSTRIAL ECONOMICS, INCORPORATED15 Second Stakeholder Consultations & National Workshop At second consultation meeting, present our draft adaptation menu, ask: Which of the recommended options do you favor? Do the economic parameters we used (e.g., price of fertilizer inputs, cost of irrigation improvements)? What barriers do you see to implementing the recommendations (economic, institutional, policy)? What options are missing from our list? Ask the same set of questions at the National Workshop

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17. INDUSTRIAL ECONOMICS, INCORPORATED17 Goals for this Visit Identify most important and potentially vulnerable crops and livestock in Uzbekistan, based on your current experience Make contact with key institutions and people Discuss available data LISTEN AND LEARN!

18. IEc INDUSTRIAL ECONOMICS, INCORPORATED 617.354.0074