Corporate sector expected to minimize significant involvement in climate change adaptation efforts
The Zurich Climate Resilience Alliance (ZCRA), a multi-sector partnership focused on enhancing climate resilience in rural and urban communities worldwide, has published a report that sheds light on the role of the private sector in funding climate adaptation in developing nations.
The report, released on Wednesday by a coalition of climate resilience groups, states that the private sector, under current policies, can only contribute 15% of the climate adaptation needs of developing nations over the next decade. The remaining 85% will have to come from public sources, which can be either the developing nations themselves or the international community.
Contrary to some assumptions, the report does not suggest that the private sector will provide the majority of funds for climate adaptation in developing nations. It also does not indicate that the private sector can fully fund climate adaptation needs in these countries. Instead, the report highlights the need for increased funding from public sources for climate adaptation in developing nations.
The ZCRA, a collaboration between research, nonprofit, and humanitarian organizations, suggests potential for the private sector to help in certain sectors regarding financing and funding gaps. However, the report does not specify which sectors the private sector can potentially help bridge financing and funding gaps in, nor does it mention whether the private sector's potential role will be limited to specific developing nations.
The report does not suggest that the private sector will only be involved in certain types of climate adaptation projects. Rather, it states that the private sector has an important role in preparing developing nations for the consequences of a hotter planet.
The ZCRA was formerly known as the Zurich Flood Resilience Alliance and is funded by the Z Zurich Foundation, linked to Zurich Insurance Group. It operates in several countries such as Afghanistan, Haiti, Bangladesh, Kenya, Malawi, and South Sudan, working through practical interventions to enhance climate resilience.
In conclusion, the Zurich Climate Resilience Alliance's report highlights the limited role of the private sector in funding climate adaptation in developing nations under current policies. It emphasizes the need for increased funding from public sources to meet the climate adaptation needs of these countries over the next decade.
