Editing IPCC:AR6/SR15/Chapter-4 (section)

== 4.4.2.4 Co-operative institutions and social safety nets ==

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Effective cooperative institutions and social safety nets may help address energy access and adaptation, as well as distributional impacts during the transition to 1.5°C-consistent pathways and enabling sustainable development. Not all countries have the institutional capabilities to design and manage these. Social capital for adaptation in the form of bonding, bridging, and linking social institutions has proved to be effective in dealing with climate crises at the local, regional and national levels (Aldrich et al., 2016) <sup>[[#fn:r1012|1012]]</sup> .

The shift towards sustainable energy systems in transitioning economies could impact the livelihoods of large populations in traditional and legacy employment sectors. The transition of selected EU Member States to biofuels, for example, caused anxiety among farmers, who lacked confidence in the biofuel crop market. Enabling contracts between farmers and energy companies, involving local governments, helped create an atmosphere of confidence during the transition (McCormick and Kåberger, 2007) <sup>[[#fn:r1013|1013]]</sup> .

How do broader socio-economic processes influence urban vulnerabilities and thereby underpin climate change adaptation? This is a systemic challenge originating from a lack of collective societal ownership of the responsibility for climate risk management. Explanations for this situation include competing time-horizons due to self-interest of stakeholders to a more ‘rational’ conception of risk assessment, measured across a risk-tolerance spectrum (Moffatt, 2014) <sup>[[#fn:r1014|1014]]</sup> .

Self-governing and self-organised institutional settings, where equipment and resource systems are commonly owned and managed, can potentially generate a much higher diversity of administration solutions, than other institutional arrangements, where energy technology and resource systems are either owned and administered individually in market settings or via a central authority (e.g., the state). They can also increase the adaptability of technological systems while reducing their burden on the environment (Labanca, 2017) <sup>[[#fn:r1015|1015]]</sup> . Educational, learning and awareness-building institutions can help strengthen the societal response to climate change (Butler et al., 2016; Thi Hong Phuong et al., 2017) <sup>[[#fn:r1016|1016]]</sup> .

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