Climate change adaptation - what role for the private sector?

Climate change is threatening livelihoods and societies worldwide. Many of the countries partnered within the framework of Germany’s development cooperation efforts are particularly vulnerable to climate change impacts. Their geographic, socio-economic, infrastructural and governmental characteristics contribute to these high vulnerability levels. While reducing the emission of greenhouse gases is high on the international agenda, in these countries, adaptation efforts are of particular importance.

These partner countries’ private sectors are also impacted by climate change, and are often expected to react adequately by public sector bodies. However, the private sector often does not have the capacities necessary to efficiently and effectively adapt to climate change. Companies have yet to find a way to effectively and efficiently adapt to climate change – this is the case both in terms of dealing with the risks brought about by climate change’s impacts and in fully exploiting the economic opportunities brought about by the need for adaptation. This lack of awareness and ability leads to potentially severe consequences for economic development in the partner countries, endangering the development achievements that have been accomplished so far.

It is therefore vital to support companies in developing and emerging countries in recognising and dealing with the risks and opportunities that result from climate change. The instruments of both public and private bodies and those drawn from German development cooperation had to be expanded in order to provide this support.

adelphi offered its support in preparing for a GIZ appraisal mission to lay the foundation for an international German development cooperation project on this topic. As part of its consultancy offerings on this project, adelphi made use of its extensive and long-standing expertise in climate change adaptation and its practical experience in communicating climate change issues to private sector organisations.