In June of 2020, Private Markets for Climate Resilience (PMCR) was announced. It’s the first initiative by a development institution to better understand climate resilience solutions that are provided by the private sector.
The Inter-American Development Bank (IDB, based in Washington, DC) and the Nordic Development Fund (NDF, based in Helsinki, Finland) have funded this assessment that focuses on transport and agriculture, and examines current best practices and opportunities related to climate resilience, by identifying leaders that are shaping the national markets, highlighting products, services, tools and processes. This study is a pioneering effort.
It is a first of its kind inquiry into private climate resilience in three emerging and developing markets. First, the study has found an active market for private climate resilience solutions, albeit very specific to sectors, tasks, climate hazards and geography. The study notes that the hundreds of solutions identified by the team are a tiny fraction of the innovations in just these two sectors, suggesting that the scope of private action in resilience is vast and remains terra incognita.
This assessment has generated a significant amount of insight and data, through interviews, primary and secondary sources, and market intelligence culled from private and public actors. The team found that while many businesses are producing and selling resilience solutions, the “tyranny of the short-term” still hinders the strategic thinking in many firms with respect to resilience in ones own operations and the recognition of opportunities driven by climate risks.
The Private Markets for Climate Resilience (PMCR) study took a frontlines look at how the private sector in six developing countries is addressing climate risk in agriculture and transportation.
Along with identifying a vast range of promising climate resilient business examples and solutions, the study also came up with findings and recommendations on how private stakeholders could become more active, as well as gain a better understanding of the business case for doing so. The working assumptions underlying the PMCR study were that most people recognize that climate is changing, but lack an understanding of the associated risks and uncertainties for implementing practical measures to protect their businesses and communities from these risks.
Moreover, the private sector is already supplying products and services to meet a growing demand for products and services to help buyers better manage their exposure to climate risks, and that this demand represents a business opportunity for firms of all sizes.