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This report has been developed to summarise and communicate the key outputs and learnings of the cost–benefit analysis (CBA) work programme undertaken as part of the Global Environment Facility’s Special Climate Change Fund (GEF-SCCF)- and AusAID-funded Pacific Adaptation to Climate Change (PACC) programme.

As part of the Global Environment Fund (GEF)-funded Pacific Adaptation to Climate Change (PACC) programme, a cost–benefit analysis (CBA) work programme was undertaken during 2011 and 2012. The purpose of this work programme was to help improve selection and design of PACC pilot projects, as well as to build Pacific island country (PIC) capacity in the use of CBA. The PACC CBA work programme was the first (substantive) capacity building programme of its kind known to have been delivered to PIC governments.

This paper provides a brief examination of capacity development needs for climate change adaptation (CCA) and disaster risk reduction (DRR) in small island developing states (SIDS). It is noted that this is a critical time for SIDS which must contend with ongoing developmental pressures in addition to growing pressures from risks associated with global environmental change and economic liberalisation that threaten their physical and economic security. Much depends in this context on the orientation of SIDS in global economic and political systems. Getting the policies right is proving to be very difficult as SIDS continue to be deficient in a critical mass of intellectual capital, policy coherence, financial resources and qualified personnel that are needed to develop and implement sustainable development policies and projects. In turn, this critically hampers the emergence of adequate systemic capacity. SIDS however have a history of changes at the global and regional levels which not only created constraints but can be seen as a source of new opportunities for building resilience to natural disasters. How effective this process transpires in the end will depend on how well lessons learnt from preceding years are taken on board and effectively acted upon.

Technical report