Private Sector Engagement in Adaptation to Climate Change: Approaches to Managing Climate Risks

Abstract

There is growing international interest in the planning, financing and implementation of adaptation to climate change. However, the discussion to date has primarily focused on the public sector’s role, with the private sector viewed primarily as a source of funding or financing. Relatively little attention has been paid to how the private sector is responding to the risks and opportunities from climate change. In this context, this analysis aims to contribute to a deeper understanding of private sector’s role. This paper examines the private sector’s progress in adapting to climate change by considering information from sixteen case studies, drawn from a range of industries across the private sector. This is complemented by a high-level analysis of broader private sector adaptation based on responses to the 2009 Carbon Disclosure Project questionnaire. The case studies provide insight into companies’ awareness of potential climate risks and vulnerabilities, their progress in assessing specific impacts on their businesses and possible ways to respond to them, and their implementation of adaptation measures and strategies to manage these risks. The analysis also examines how companies are taking advantage of new business opportunities arising from climate change. The paper explores companies’ motivations for implementing adaptation measures, and establishes common factors which can affect companies’ capacities to adapt, their incentives for action, and their perspectives on the need to adapt. The analysis considers how these factors can both encourage and impede adaptation, and assesses potential public sector roles for eliminating barriers to action, encouraging engagement and incentivising private sector investment in adaptation.climate change, risk management, private sector, adaptation, adaptation, secteur privé, changement climatique, gestion des risques

A Governing Framework for Climate Change Adaptation in the Built Environment

“…To date only a relatively few nonprofit organizations and governing bodies have adopted one or more informational, educational, planning and adaptation activities (Berkhout 2006, California Resources Agency 2009, Levin 2010, Agrawala et al 2011; Local Governments for Sustainability [ICLEI], http://www.iclei.org). As climate change progresses, however, the number of situations calling for collective action will grow in number, as will the pressure on policy makers to respond.…”

The role bonds in financing climate resilient economy

“…They are more interested in current climate variability rather than in the future climate change despite that the level of their awareness in both aspects is high. In this case interaction is very simple: the more uncertainties around climate impacts the more companies' investments are spent on adaptation (Agrawala et al 2011).…”

Mobilising Private Investment in Sustainable Transport

“…In addition, sea-level rise, heightened storm surge and increased delta river-flows will raise flood and salinity risks for coastal transport infrastructure (e.g. risk of road pavement deterioration due to salinity) (ADB, 2011;Agrawala et al, 2011;DEFRA, 2011).…”

“…Government support for research on climate change is essential for providing information and analytical tools to integrate climate change considerations into the public and private decision making process. In particular, climate modelling research, climate change impact analysis, and downscaling from global to regional models, can support the private sector's decision to invest in climateresilient transport infrastructure (Agrawala et al, 2011;Corfee-Morlot et al, 2011). Governments can provide information support by creating climate risk assessment tools to familiarise private investors with the issue or facilitate investors' decisions by filtering and screening bankable projects in their countries, e.g.…”