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

2. 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

3. Outline / Agenda Assessing Climate Change Opportunities Opportunitites
Business Opportunities
Opportunity Assessment
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4. I. Opportunities
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5. I. Opportunities – Promising prospects for companies
Source: C2ES 2013
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6. 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
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7. 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
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8. 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
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9. II. Business Opportunities
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10. 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

11. 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
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12. 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
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13. 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
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14. III. Opportunity Analysis
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15. 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?
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16. 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?
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17. Thank you for your attention!
Company Trainer 1 Telephone number address Homepage
Company
Trainer 2 Telephone number address
Homepage
Knowledge partner
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18. Sources
C2ES 2013: Weathering the Storm: Building Business Resilience to Climate Change. Available at final.pdf GIZ 2014: Trainer‘s Manual. Facing the Impacts of Climate Change: Indian SMEs and Adaptation. Available at:: manual-sme_small.pdf World Bank 2014: New Report Identifies Major Clean-Tech Market Opportunity for Small Businesses in Developing Countries. Available at: businesses-in-developing-countries
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