Mobilizing the Private Sector for Adaptation Finance

Private-sector finance has been widely seen as a step to scale up access to resources in order to respond to climate change, but researchers have paid little attention to how the private sector is responding to the risks and opportunities from climate change adaptation. This research project will help fill that gap. Engaging private sector investors The private sector is mostly unaware of the investment opportunities climate change adaptation it might offer. At the same time, the public sector does not know how to package adaptation efforts in ways that attract private sector investment. Through this project, researchers will explore whether and under what conditions private sector financing could be mobilized for climate change adaptation projects in the same way as it has been for mitigation projects. Supporting sub-Saharan Africa The Climate Technology Initiative Private Financing Advisory Network (CTI PFAN) will conduct the research in collaboration with the Frankfurt Business School and existing CTI PFAN networks in targeted sub-Saharan African countries. The research teams will: -assess the barriers to private investment in adaptation projects; -identify areas that attract private sector investment interest; -analyze risks associated with adaptation related projects; and -develop practical metrics for measuring the success and impact of adaptation projects, preferably in the water sector. One of the novel aspects of this project is the objective of developing a portfolio of potential adaptation projects of interest to private sector investment. The project team will present these projects at an investor forum. Investors will have the opportunity to review them for their potential financial sustainability. The forum will also raise investors' awareness about emerging business opportunities and help change the perception that adaptation is difficult to support with commercial finance in sub-Saharan Africa.