The Business of adaptation The Role of the Private Sector in Adaptation to Climate Change Pieter terpstra, world resources institute, pterpstra@wri.org

Vulnerability and adaptation team at WRI

Who is the “private sector”? Why focus on the private sector? Contents Who is the “private sector”? Why focus on the private sector? Role of the private sector in adaptation Catalyzing engagement

Who is “the private sector”?

Who is “The private sector”?

Some statistics from low and middle income countries Up to 95-99% of all businesses are small (<250 employees) Small businesses provide up to 80% of jobs Informal businesses outnumber formal businesses 75% of poor and vulnerable people live in rural areas and 80% of them are dependent on agriculture

Role of the private sector in adaptation Resilient businesses contribute to resilient communities: Income and job security Continuity Specific role in adaptation: Risk management New products and services Businesses are adapting but not sufficiently and not fast enough

Barriers to investments 3. General business environment 2. Institutional, policy and regulatory environment for adaptation 1. Business-level barriers Availability of adaptation options Access to markets for adaptation products Institutional factors, regulations and policies affecting investment in climate adaptation Attitude Financial capacity Technical capacity Risk awareness

Interventions Awareness and Knowledge Direct Investment Technical Assistance and Training Market Support Laws and Policies Price Signals Public-Private Partnerships Subsidies, Tax Reliefs, and Carbon Credits Small Business Partnerships Collaboration with Other Stakeholders De-Risking Loans and Microfinance Public Spending on Infrastructure Seed Capital Grants

Integrating private sector in adaptation policies and strategies Prioritize sectors and engage private sector actors in policy design Identify sector specific drivers and barriers Design interventions to address barriers in a comprehensive way: Knowledge Technical Financial Market Access Focus on strengthening businesses and income diversification

Limiting Impact of Climate change on Development