In Ethiopia, village surveys wereconducted in six villages and two expert workshops wereorganized to discuss the organization of the study and toevaluate the draft results. Based on household surveys,focus group discussions, and institutional stakeholderinterviews, we assessed household vulnerability, analyzedthe strategies households adopt to reduce the hazards faced,and evaluated the assistance households receive frominstitutions. Vulnerability profiles were formulated, whichshow that household vulnerability differs substantiallyamong and within villages. The size and diversity of incomeand the ability to flexibly decide on alternative measuresto mitigate the adverse climate effects, which depends on,for example, level of education and dependency ratio, haveeffects on the adaptation options households adopt and thetype of institutional assistance they receive. This reportpresents the results of the World Bank-funded project onCosting Adaptation through Local Institutions (CALI). Theobjectives of the CALI-project are: (1) to identify thecosts of adaptation through local institutions, and (2) toinvestigate the institutions that support households inadapting to climate variability, the efforts and costsrequired to realize the adaptation options, and how theyfacilitate adaptation to climate variability. The study hasbeen carried out in Ethiopia, Mali, and Yemen. This reportdiscusses the results for Ethiopia.