The paper identifies factors that can drive the private sector to invest in climate change adaptation. Climate change poses both risks and opportunities to private actors. Business assets (tangible and intangible), operations, supply chains and markets are at risk from climate change, threatening companies’ revenue and costs while also affecting their financial performance and having a ripple effect on their financiers. It also presents opportunities to mitigate existing and emerging climate risks, as well as develop and market new goods and services, that companies and financial institutions’ clients will increasingly demand.
This paper presents a framework for identifying key enabling factors for the private sector to invest in climate change adaptation. This framework offers a comprehensive approach to thinking about how policy makers, practitioners and donors can engage the private sector in adaptation, including drivers, barriers and enablers. The work is illustrated by the approach used, and the lessons learnt from the £23 million ACT programme. ACT is a UK government-funded regional programme, working in partnership with national and sub-national governments in Afghanistan, Bangladesh, India, Nepal and Pakistan to integrate climate change adaptation into development planning and delivery, including leveraging of private finance.