How much will it cost?

The document outlines how estimating the costs of Nationally Determined Contributions (NDCs) allows governments to identify financing gaps and select appropriate financial instruments. It details various costing methodologies—including econometric, macroeconomic, and integrated assessment models—and highlights the challenges of data gaps and uncertainty. Case studies from Colombia, South Africa, and Indonesia illustrate the application of these tools in national planning.

• Estimating the cost of implementing NDCs is a prerequisite for making strategic decisions regarding financial policies and instruments, as it allows governments to identify the gap between available resources and required funding.
• Governments use several distinct methodologies for NDC costing: econometric models for analyzing variable relationships; macroeconomic models for simplified economic interactions; Integrated Assessment Models (IAM) for evaluating economic, social, and physical systems; cost-benefit analysis for specific project viability; and extrapolation for estimating costs in countries lacking historical data.
• Colombia employs a bottom-up approach for NDC adaptation costs, such as calculating the investment, operation, and maintenance costs for the ecological recovery and restoration of 18,000 hectares.
• South Africa's Country and Climate Development Report (CCDR) utilized three models for energy-sector transition analysis: the South Africa TIMES Model (SATIM) for least-cost net-zero paths by 2050, the South African General Equilibrium (SAGE) for economic variables, and a third model for impacts on households and jobs.
• Indonesia's Low Carbon Development Initiative (LCDI), started in 2017 by Bappenas, integrated climate considerations into its 5-year development plan using four economic growth scenarios extending to 2045.
• The primary challenges in NDC costing include significant data gaps regarding specific sectoral and geographic actions, as well as a lack of staffing and expertise within governments to manage the uncertainties exacerbated by climate change.

APA

World Resources Institute (n.d.). How much will it cost? https://www.wri.org/paying-for-paris/how-much-will-it-cost

Chicago

World Resources Institute. How much will it cost? n.d. https://www.wri.org/paying-for-paris/how-much-will-it-cost.

Wikipedia

{{cite report |author=World Resources Institute |title=How much will it cost? |url=https://www.wri.org/paying-for-paris/how-much-will-it-cost |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendhow, author = {{World Resources Institute}}, title = {{How much will it cost?}}, institution = {World Resources Institute}, url = {https://www.wri.org/paying-for-paris/how-much-will-it-cost}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }