Abstract
Highlights
▪ The triple dividend of resilience (TDR) is an approach that considers
avoided losses (first dividend), induced economic or development benefits
(second dividend), and additional social and environmental benefits (third
dividend) of adaptation actions. The second and third dividends are espe-
cially important since they accrue regardless of whether the actual climate
risk materializes.
▪ The second and third dividends are often highly significant. They can
exceed the value of avoided losses and can generate project benefit-cost
ratios (BCRs) greater than 1 even when the value of avoided losses is
not considered.
▪ Accounting for the full range of benefits demonstrates higher BCRs for
adaptation investments than are often assumed. In turn, this can help
increase access to project finance, improve project design, and improve ex
post monitoring and evaluation.
▪ Researchers and practitioners are developing more effective appraisal
tools for analyzing the benefits of climate resilience investments and are
generating more information useful in decision-making.
▪ Investors in the public sector stand to benefit from increased use of the
TDR by having more consistent and comparable assessments across
sectors and donors. The private sector stands to benefit by better under-
standing both second dividend financial benefits and third dividend
nonmarket benefits that flow from investing in resilience.
▪ The triple dividend of resilience (TDR) is an approach that considers
avoided losses (first dividend), induced economic or development benefits
(second dividend), and additional social and environmental benefits (third
dividend) of adaptation actions. The second and third dividends are espe-
cially important since they accrue regardless of whether the actual climate
risk materializes.
▪ The second and third dividends are often highly significant. They can
exceed the value of avoided losses and can generate project benefit-cost
ratios (BCRs) greater than 1 even when the value of avoided losses is
not considered.
▪ Accounting for the full range of benefits demonstrates higher BCRs for
adaptation investments than are often assumed. In turn, this can help
increase access to project finance, improve project design, and improve ex
post monitoring and evaluation.
▪ Researchers and practitioners are developing more effective appraisal
tools for analyzing the benefits of climate resilience investments and are
generating more information useful in decision-making.
▪ Investors in the public sector stand to benefit from increased use of the
TDR by having more consistent and comparable assessments across
sectors and donors. The private sector stands to benefit by better under-
standing both second dividend financial benefits and third dividend
nonmarket benefits that flow from investing in resilience.
| Original language | English |
|---|---|
| Journal | World Resources Institute Working Paper |
| DOIs | |
| Publication status | Published - 2022 |
