Adaptive capacity is evaluated in two steps of this tool: Non-physical Project Components and Influence of Development Context.
Evaluating non-physical project components: In this step, users focus on the investments of their project that do not involve physical/structural works in an effort to assess how those activities influence adaptive capacity. This step is crucial because projects typically always include a non-physical investment, such as capacity building or policy development, and Such activities may have a significant influence on stakeholders’ ability to cope with the impacts of climate and geophysical hazards. This step highlights the importance of such investments in determining how impacts could potentially be managed.
Evaluating the influence of development context: In this step, users consider adaptive capacity in the broader context (outside of the realm of the project). This step is included because it allows users to acknowledge the social, economic, and political factors that are outside of their control, but may exacerbate or reduce the impacts on the project.
Time-frame not applied: The adaptive capacity ratings are assessed independently of time frame. This is because these non-physical elements do not typically have clear “lock-in” effects in the way that physical infrastructure does. In addition, adaptive capacity can change over short time periods; for example, conflict or economic recessions can rapidly reduce adaptive capacity, while cash-for-work programs or access to crop insurance can quickly boost adaptive capacity. Therefore, the ratings for adaptive capacity are not assigned to a specific time- frame.
Hazard-specificity not applied: The non-physical project components and development context ratings are not separated into hazard-specific ratings, because the influence of adaptive capacity typically applies to the impacts of all hazards. For example, farmer cooperatives can help farmers access new technology, cope with years of low crop productivity, and share new techniques. All of those benefits of cooperatives bolsters farmers’ livelihoods and help protect them against harmful impacts, whether they are from flooding, drought, or high temperatures. Such cooperatives can help farmers manage and respond to new potential impacts as they arise by providing resources and training tailored to the relevant hazards.
Similarly, access to financial savings or loans can help farmers cope with years of low crop productivity, whether the reduced crop yield is due to drought, heat waves, or floods.
The rating scale for adaptive capacity looks like this:
Rather than measuring a level of potential impact, this scale reflects the modulating effect of adaptive capacity on potential impacts. It ranges from positive effects on potential impacts (significantly reduces impacts) to negative effects on potential impacts (significantly increases impacts).