Selected Issues Papers

Moldova is more vulnerable to climate change than the rest of Europe, due to its (i) higher sensitivity to changes in climate conditions (reflecting its heavier reliance on agriculture, a comparatively-larger rural population, high dependence on energy imports and limited diversification of energy supply sources, and limited financial resources to provide high-quality public services); and (ii) weaker adaptative capacity to climate shocks (due to its comparatively weaker disaster preparedness strategy, low adaptation in the agriculture sector and poorer quality of infrastructure). Adaptation investments can substantially reduce output losses caused by natural disasters, are more cost-efficient than responding to disasters ex-post, and can contribute to boost Moldova’s long-term economic growth and support its development objectives.