The Role of International Organisations and Funds in Catalysing Private Finance for Adaptation 3 November, 2013.

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Presentation transcript:

The Role of International Organisations and Funds in Catalysing Private Finance for Adaptation 3 November, 2013

Observation 1 There is limited information available on how international public finance has leveraged private finance towards climate change compatible investments.

Observation 2 MDB instruments to promote private sector engagement (loans, risk guarantees) are directed towards low carbon investments, eg. energy efficiency, renewable energy.

Observation 3 The same is true of key international climate funds. Eg. the GEF’s private sector strategy is mainly focused on climate change mitigation. Significant barriers are acknowledged for adaptation.

Observation 4 A similar story for bilateral support. A recent analysis of private climate finance support (PCFS) provided by a key donor country finds that most went to one sector (solar energy) in one country, (ODI, 2013).

Observation 5 Most companies perceive climate change as a ‘future’ risk and more for the state, and its partners, to manage (OECD, 2010).

Observation 6 However, companies are becoming more aware of climate change related risk, due to extreme events (eg floods in Thailand).

Observation 7 There is a lot more work to be done by International Organisations and Funds to support private sector investment in supporting adaptation and reducing climate risk (GEF, IFC, 2013).

Avenues for IOs Awareness raising and training on potential risks and response measures Support improved climate info and weather forecasting Advice and support for regulatory reforms, eg in coastal development planning Help to develop new adaptation technologies, that could then be commercialised. Risk screening of new investments

Discussion points Integrating adaptation with mitigation in private sector financing? The insurance sector as a viable entry point for developing countries? Role of the GCF (private sector facility)?