Emerging solutions to drive private investment in climate resilience

Description

Climate change is expected to increase risks to businesses, infrastructure, assets and economies. Understanding how to involve the private sector in responding to these risks – or encouraging them to take advantage of the new business opportunities that may arise from changing climate conditions – is crucial to catalyze greater investment in activities that increase countries, businesses, and communities’ resilience.

This working paper provides emerging insights from the experience of seven Development Finance Institutions (DFIs) in driving private sector investment in climate resilience, and from a workshop on strategies and business models that could help to scale up current efforts. It examines a subset of projects developed by five multilateral, one bilateral and one national development bank over 2011-2014, in both developed and developing countries. In particular, it looks at the tools and approaches designed by these DFIs to address pre-investment and investment stage barriers holding back private investment in measures that would enhance the resilience of infrastructure, water-intensive industries and agriculture. These are the sectors where DFIs have focused their private sector-oriented interventions. It aims to provide governments, their agencies and DFIs with an overview of the strategies employed so far and to identify opportunities to further scale up private investment in climate resilience.

Reference information