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Using cost effectiveness analysis to maximise the impact of climate investments

07-04-2022

Global spending on climate change should increase 600% per year by 2030 to fund the transition required to keep temperature rises to 1.5°C. In this context, funders are getting increasingly interested in understanding which investments yield the best results by using structured assessments that enable the quantification of the impacts of their climate investments.

The estimation of the GHG emission reductions achieved by a significant number of climate investments is particularly challenging. Interventions aimed at implementing softer measures such as technical assistance, building capacities and supporting advocacy or litigation actions such as those made by major philanthropies, are hard to quantify.

At Logika Group we have acquired the required expertise and skills to develop and implement bespoke methodologies on cost-effectiveness and cost-benefit analysis to assist the process of identification of investments with a high climate mitigation impact. In 2021, we delivered a custom-made practical tool to calculate the cost-effectiveness of climate investments for a major philanthropic body. This tool will enable our client to better understand how to make the best use of the funds available, resulting in more effective strategies and yielding substantial and faster gains in emissions mitigated, at a lower cost.

Details of the tool we developed, how it has been applied and how it can be adapted to guide future climate investments are set out here.



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