Supporting Businesses To Deliver Climate Change Adaptation In Acp Countries: Priority Actions And The Role Of International Capital
Executive Summary
African, Caribbean, and Pacific countries are some of most vulnerable to climate change. Given pressures on public resources, the need is urgent to stimulate business activity, and thus private capital, into areas highly disrupted by climate change —food production, water and the natural environment, infrastructure, and disaster risk management— to generate adaptation solutions. However, business engagement in these areas is often low, particularly in ACP countries, many of which have smaller economies, fewer players, and, in some cases, immature financial and capital markets. This paper highlights three priority actions that, if introduced, can help catalyse enterprise engagement to provide goods and services to build countries’ resilience to climate change.
Key Findings:
1. Translate adaptation priorities into financing strategies:
- Engage stakeholders in adaptation planning
- Develop adaptation targets, pathways, and technologies
- Assess adaptation costs and financing required
- Identify and understand barriers to financing adaptation
2. Develop a pipeline of high-quality, investmentready adaptation projects
- Share climate information and targeted outreach to companies
- Devise project preparation facilities to help develop the investment case
- Support incubators and accelerators to stimulate private sector engagement
3. Offer tailored financial solutions for adaptation
- Provide more risk-tolerant financial instruments
- Structure blended finance vehicles
- Use a portfolio approach (aggregation of deals)
