Expansion of the GIZ Climate Expert Tool with financing options for climate change adaptation measures for SMEs

ladder in front of green wall

Heat waves, storm floods, rising sea levels: According to the Intergovernmental Panel on Climate Change (IPCC), the number and magnitude of such climate-related trends and events is increasing. These and related climate change impacts can affect companies and hamper their business activities – for example by damaging capital goods and buildings or by disrupting supply chains and distribution channels. Especially for small and medium-sized enterprises (SMEs), unforeseen climate events can quickly threaten their existence. At the same time, SMEs are the economic backbone of many developing and emerging countries, creating many jobs and providing income for numerous families. Hence, their protection is an important component of international climate cooperation.

The “Climate Expert” tool developed by the Gesellschaft für internationale Zusammenarbeit (GIZ) supports SMEs in identifying climate risks and opportunities for their businesses and in developing and communicating adaptation strategies. Assessments are conducted in a four-step process that also features a cost-benefit analysis. The aim of this project was to develop a fifth step that helps SMEs identify financing options that fit their particular profile and context.

On behalf of GIZ, adelphi developed the fifth step in the Excel-based Climate Expert Tool and created appropriate training materials for consultants, who in turn apply the tool in project countries. The project team drew on adelphi's extensive in-house expertise on SME financing. Interviews with experts from the financial sector and development cooperation provided further insights.