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

2. Vulnerability and adaptation team at WRI

3. 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

4. Who is “the private sector”?

5. Who is “The private sector”?

6. 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

7. 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

8. 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

9. 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

10. 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

11. Limiting Impact of Climate change on Development