The increasing frequency of extreme climate events in Brazil, such as droughts in the Northeast and Southeast and floods in the Amazon region, as well as their social, economic, and environmental consequences, demonstrate the relevance and urgency of deepening analyses and developing tools that strengthen resilience and response capacity to growing climate variability.

For some river basins, the need for adaptation is pressing. This is the case of the Piancó-Piranhas-Açu River Basin, located between the hinterlands of Paraíba and Rio Grande do Norte, which experienced a severe drought between 2012 and 2017. The region faced, and continues to face, serious social and economic difficulties resulting from the lack of rainfall and the consequent scarcity of potable water. Due to the chronically critical storage levels of the main reservoirs, the population remains vulnerable and, in many cases, dependent on water-truck deliveries.

Illustrating the challenge of the semi-arid region, this basin—identified as one of the most susceptible in Brazil to the effects of global climate change—reflects the new challenges imposed by a changing climate. Developing adaptation measures is fundamental in the current context, particularly for the regions most exposed to risk. In this regard, the National Water Agency (ANA) contracted FGVces in 2015 to conduct a Cost-Benefit Analysis (CBA) of potential adaptation measures for the Piancó-Piranhas-Açu River Basin.

FGV São Paulo School of Business Administration (FGV EAESP)

FGV Center for Sustainability Studies (FGVces)

Researchers: Mariana Nicolletti 

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