Cost-Benefit Analysis (CBA) Guide
The Cost-Benefit Analysis (CBA) Guide supports cities in identifying appropriate tools to assess the costs and benefits of various climate interventions. It draws on a curated collection of open-access CBA tools and helps users find the ones most relevant to their project context.
Through a simple questionnaire, users are guided to suitable tools based on key project characteristics, needs and resource availabilities. Based on user responses, the tool recommends a first-best and second-best CBA tool.
Supporting documents and data sources are also provided in the Guide to help cities move forward with implementation.
Expected outcomes:
- A clear framework for assessing both tangible and intangible benefits of climate projects
- Stronger business cases for climate projects, improving their chances of securing funding
- A clearer understanding of the economic and societal impact of interventions
Understanding the CBA Guide
Municipalities often face challenges in conducting cost-benefit analyses due to:
- Limited financial and technical resources
- Complexity of existing CBA tools
- Uncertainty in quantifying environmental and social benefits
The content of this Guide is based on a literature review and analysis of publicly available CBA tools, conducted by Global Green Growth Institute (GGGI). The algorithm developed to select the most suitable CBA tools is based on a scoring system where the tools included in the Guide get the more scores the better they match the criteria chosen by the user. Additionally, the Guide provides links to relevant data sources as well as guides and case studies, to support users in applying the selected CBA tool effectively.
Who can use the CBA Guide?
- Urban planners and city administrators, to evaluate financial feasibility of projects.
- Financial and economic analysts, to conduct in-depth CBA for climate interventions.
- Project developers & consultants, to strengthen investment cases.
Expertise requirements
Users should have:
- Basic economic knowledge and understanding of CBA principles
- Awareness of project characteristics, sectoral needs and available data
CBA Guide and the 5UP Approach
The CBA Guide is particularly useful in the planning and evaluation stages of climate projects:
- UP-DATING – Supports initial cost-benefit evaluations during project development
- UP-SCALING – Assists in evaluating financial feasibility when expanding successful interventions
It enables cities to identify the most appropriate CBA tools for their projects, ensuring a comprehensive assessment of economic, environmental and social impacts.
Click on this link to learn more about the 5UP Approach.
Guide: How to use the CBA Guide
You can access the guide on how to use the CBA Guide here.