Private Sector Adaptation to Climate Change

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Strengthening private sector capacity to adapt to climate change: focus on micro, small and medium-sized enterprises (MSMEs) in developing countries

Climate change is one of the greatest challenges facing humankind.

Because of their geographical location and weak infrastructure, developing countries and emerging economies bear the brunt of the consequences of rising temperatures, droughts, storms, floods and seasonal irregularities.

The vast majority of employment and income-generation opportunities in developing countries and emerging economies are offered by small and medium-sized enterprises (SMEs) in the retail and manufacturing industries. These SMEs also play a key role in supplying goods and services to the population.

If micro, small and medium-sized enterprises (MSMEs) in developing countries are left exposed to the risks of climate change, then these already weak nations will become even more vulnerable, jeopardising the development progress they have already made.

In response, GIZ is working on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) to assist MSMEs in its partner countries in assessing climate-related risks and opportunities more effectively and in developing adaptation strategies. Thus we consider adaptation for the private sector to be either an additional element of corporate risk management or an opportunity for companies to develop new products and services for other market players.

This project is developing instruments in raising awareness, advising the private sector on adaptation, providing advisory services on adaptation financing and dissemination of knowledge. In order to enrich the programme’s outcome, the sectors involved vary from light engineering, agro-processing, water transport sector to tourism and approaches for Industrial Park adaptation are developed.

Furthermore, the project will explore opportunities, barriers and options for financing adaptation measures in the partner countries. Therefore, a study “Demystifying Private Adaptation Finance” will be launched at the COP 21 in Paris, which was conducted by UNEP-FI and Frankfurt School.

Project Details

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Angelika Frei-Oldenburg