Module 2b Assessing Climate Change Business Opportunities Country, Date, Presenter

Objective The objectives of this module are to: understand the opportunities SMEs can unleash in the wake of climate change learn about the two types of business opportunities briefly go through important criteria for evaluating and prioritizing business opportunities ToC - Module 2b

Outline / Agenda Assessing Climate Change Opportunities Opportunitites Business Opportunities Opportunity Assessment ToC - Module 2b

I. Opportunities ToC - Module 2b

I. Opportunities – Promising prospects for companies Source: C2ES 2013 ToC - Module 2b

I. Opportunities – Promising prospects for companies Sector Opportunities Consumer goods Small-scale cooling systems, etc. Building materials Disaster resilient building material (e.g. compressed stabilized earth blocks (CSEB)), insulation foam, etc. Manufacturing Energy efficient technology, flood protection gear, industrial cooling systems, etc. Agriculture Climate smart seeds, drip irrigation systems, disaster resistant storage facilities, water-proof packaging, etc. Services Climate and weather forecasts, Financial services Access to local and international green funds ToC - Module 2b

I. Opportunities – Example: Opportunities of a vegetable container manufacturer Climate change phenomenon More intense and frequent heavy-rain events Target market, customers, production sites Fruit and vegetable producers / processors Impact: Expected market changes Need for water-proof yet cheap & handy storage Product/service opportunity Water-proof storage containers Chris_Parfitt, CC BY 2.0 11/11/2018 ToC - Module 2b

I. Opportunities – Two types of beneficial effects of climate change Business Opportunity New market opportunities for products and services in response to adaptation Easier-to-manufacture products due to more favourable climate conditions Competitive Advantage (= positive side effects of good adaptation measures) Cost reductions in operations Reputational gains among key stakeholders Development of skills that will become more important in the future Anticipation of regulation Add examplary adaptation measures by companies that have been implemented in your country Climate change does not only loom with severe risks ahead, but creates various opportunities, either as business opportunities or competitive advantage ToC - Module 2b

II. Business Opportunities ToC - Module 2b

II. Business opportunities – Two types of business opportunities 1. Market Business opportunities in new markets for adaptation products and services Market opportunities originate from strategic development of new innovations that tap into a new niche in the market that opens up due to climate change. Business opportunity 2. Production condition Easier-to-manufacture products or services due to changed climate conditions Production condition opportunities arise from changed climate conditions. This can happen without major efforts from the company but in some cases a shift of input sources is required. Business opportunity Add examplary adaptation measures by companies that have been implemented in your country ToC - Module 2b

II. Business Opportunities – Market opportunities How? Analysing shifts in customer preferences and regulatory frameworks due to climate change impacts Benefits Developing new products and services which are climate- resilient and/or facilitate adaptation First-mover advantages in markets of the future: Product: Innovative, sustainable insulation material Service: Consulting services on strengthening water efficiency in production processes Example Add examplary adaptation measures by companies that have been implemented in your country ToC - Module 2b

II. Business Opportunities – Active role of companies in leveraging market opportunities When looking at adaptation from a business development perspective, companies can become first movers on new markets for products and services which help others adapt to climate change. Company managers can: Assess the company’s specific competencies in light of the question: what products or services can we offer which help others adapt to climate change? Invest in R&D to find out about future trends and needs Invest resources in these areas more aggressively, refocus the company’s business segments Add examplary adaptation measures by companies that have been implemented in your country ToC - Module 2b

II. Business Opportunities – Production conditions opportunities How? Analysing costs and yields of production inputs and outputs Benefits Switching to lower cost input materials or increasing the yield of existing production inputs Example Using crops, fruits and vegetables that have higher yields under new climate conditions Add examplary adaptation measures by companies that have been implemented in your country ToC - Module 2b

III. Opportunity Analysis ToC - Module 2b

III. Opportunity Assessment – Overview The potential of the identified opportunities can be evaluated and prioritized based on a suite of criteria – that relate to both the company and external factors: Market/Revenue: How large do you estimate the market scope of the opportunity, and hence, what revenue may issue from commercialization? Technical Feasibility: How complex is the technical implementation of the measure? Has a similar measure been implemented before? Organisational Feasibility: Would your company have the internal resources (e.g. financial, human captial, and time capacity) to shoulder the development of the product or service? Challenges and Potential Solutions: When thinking through such development, what challenges may arise, and how could you tackle them? ToC - Module 2b

Discussion – Business opportunities What business opportunities are relevant for the sectors that you are working in? What are difficulties in identifying business opportunities? What are difficulties in realising business opportunities? ToC - Module 2b

Thank you for your attention! Company Trainer 1 Telephone number E-Mail address Homepage Company Trainer 2 Telephone number E-Mail address Homepage Knowledge partner ToC - Module 2b

Sources C2ES 2013: Weathering the Storm: Building Business Resilience to Climate Change. Available at http://www.c2es.org/docUploads/business-resilience-report-07-2013- final.pdf GIZ 2014: Trainer‘s Manual. Facing the Impacts of Climate Change: Indian SMEs and Adaptation. Available at:: https://www.giz.de/en/downloads/giz2013-en-trainer- manual-sme_small.pdf World Bank 2014: New Report Identifies Major Clean-Tech Market Opportunity for Small Businesses in Developing Countries. Available at: http://www.worldbank.org/en/news/feature/2014/09/24/new-report-identifies-major-clean-tech-market-opportunity-for-small- businesses-in-developing-countries ToC - Module 2b