Page - 100 - in Loss and Damage from Climate Change - Concepts, Methods and Policy Options

100 T.Schinkoet al. 140million accumulatedbyunspent finance from theBangladeshClimateChange Trust Fund in order to dealwith those climate-related impacts not tackled by con- ventionalDRRorCCAmeasures.Thiswouldalsoincludeex-postcompensationfor lossesanddamages triggeredbyclimatechange inducedslowonset events, salinity intrusionand increased intensityofcyclones. 4.4 Identifying theSpace forLossandDamage: AnApplication Science can provide insights into defining the Loss and Damage risk space and associated policy response options. As indicated by the list of building blocks for a framework outlined above and also demonstrated by other chapters in this vol- ume (seeparticularly chapters byLopez et al. 2018;Botzen et al. 2018;Serdeczny 2018),scienceforL&Dhastoessentiallybetransdisciplinaryandmultifaceted.This requires input by, among others, climatology,meteorology, ethics and philosophy, geography, risk science and social sciences including economics.Weproceedwith an application building on transdisciplinary analysis and focused on one aspect, identifying fiscal risk tolerancewith respect tomanaging climate-related extreme events. 4.4.1 FromRiskIdentification toRiskEvaluation:Risk LayeringandRiskTolerance Climate risk assessments generally go through a structured process, startingwith the identificationof risksbasedonqualitativeandquantitativemethodologies.Risk identificationisthenfollowedbyriskevaluationfordeterminingrisktolerance,asthe nextstepin thestructuredprocess,which,again,canbuildonvariousmethods,such as eliciting stated riskpreferences via focusgroups, studyingbehaviour inmarkets to reveal preference, or use risk and economicmodelling. Box 4.2 reports on the politicaldecision-makingprocessfordefiningacceptableandunacceptable risksfor accident risks inSwitzerland.Riskanalyticshasprovided thescientificbasis for the political decision in that case, but has tended to onlymatter up to a certain point. After all, thedelimitersof acceptable tonot acceptable riskareashavemostlybeen determinedby thepoliticalprocess.