Yemen is particularly vulnerable toclimate change and variability impacts because of its waterdependence and current high levels of water stress. Thisnatural resource challenge is compounded by demographicpressure, weak governance and institutions, and by adeteriorating economic situation. The economic and socialoutlook is not bright, and planning and internationalsupport will certainly be needed to help Yemen to adapt tothe further stresses caused by climate change andvariability. In the light of these challenges, thegovernment has developed a National Adaptation Program ofAction (NAPA). In support of this, the World Bankcommissioned a series of studies of climate change in twophases: the first phase projected climate change scenariosfor Yemen, and phase two assessed climate change impacts onthe agricultural and water sectors, and outlined possiblepolicy and program responses. The present study isessentially a digest of the work done to date, and isintended as a contribution to Government's process ofassessing vulnerability and adaptation options by: (i)assessing possible impacts on the water balance and onagriculture and rural livelihoods; and (ii) reviewingadaptation options and the priorities for governmentpolicies, strategies and investments.