Contributor(s): Dr Tamma Carleton, Dr Asad Gilani, Professor Michael Greenstone, Dr Eric Obutey | Climate change is already increasing global temperatures, changing rainfall patterns, and resulting in more frequent and severe floods and droughts. Developing countries are most vulnerable to climate change, which can aggravate the effects of poverty and rapid urbanisation. Without effective policies for adaptation and mitigation, climate change may push hundreds of millions further into poverty and limit the opportunities for sustainable development. In order to formulate effective and equitable adaptation and mitigation strategies, governments must be equipped with a thorough estimation of the costs and benefits of various policies.