Economic Assessment of the Impacts of Climate Change in Uganda

This fact sheet presents an economic assessment of Uganda's energy sector supply and demand through 2050, utilizing the LEAP model to evaluate climate change impacts and adaptation strategies. It highlights a critical projected deficit in biomass and the financial requirements for transitioning to alternative energy sources and expanding electricity generation.

• Uganda's energy supply is currently dominated by traditional biomass, but a significant deficit is projected for the 2020s and beyond. A 'Business as Usual' growth scenario for biomass demand is considered unsustainable. To address this, the report suggests increasing the use of electricity and LPG for households; importing the necessary LPG over the next 40 years would cost approximately $1.7 billion, or $42 million annually.
• Climate change is expected to reduce biomass availability, with a plausible loss of 5 to 10 percent of domestic wood between 2020 and 2050. Such a loss would necessitate additional expenditures of $5-11 billion on LPG to fill the demand gap.
• Precipitation reductions due to climate change could decrease hydropower potential by approximately 26 percent by 2050. While the government's current expansion programme is deemed sufficient to cover this deficit if implemented on schedule, it is highly resource-intensive. Estimated additional capital investment for hydro, nuclear, and other generation through 2050 is around $83 billion, with initial five-year investments of approximately $200 million per year (about 1 percent of GDP).
• The government of Uganda's Costed Adaptation Strategy prioritizes reducing biomass dependence and promoting energy conservation to lower GHG emissions. However, the report notes that the strategy lacks components to encourage a switch to LPG or increase modern energy access for households currently relying on traditional biomass, both of which are identified as priority areas.

APA

Climate and Development Knowledge Network (n.d.). Economic Assessment of the Impacts of Climate Change in Uganda. https://cdkn.org/sites/default/files/files/Uganda_CC-Economics_FACT-SHEET_Energy.pdf

Chicago

Climate and Development Knowledge Network. Economic Assessment of the Impacts of Climate Change in Uganda. n.d. https://cdkn.org/sites/default/files/files/Uganda_CC-Economics_FACT-SHEET_Energy.pdf.

Wikipedia

{{cite report |author=Climate and Development Knowledge Network |title=Economic Assessment of the Impacts of Climate Change in Uganda |url=https://cdkn.org/sites/default/files/files/Uganda_CC-Economics_FACT-SHEET_Energy.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climateanddevelopmentknowledgenetworkndeconomic, author = {{Climate and Development Knowledge Network}}, title = {{Economic Assessment of the Impacts of Climate Change in Uganda}}, institution = {Climate and Development Knowledge Network}, url = {https://cdkn.org/sites/default/files/files/Uganda_CC-Economics_FACT-SHEET_Energy.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }