Business case for the Bangladeshi private sector to invest in climate change and access international climate finance
A new paper by Acclimatise, IIED and ICCCAD with support from CDKN finds that the private sector in Bangladesh is beginning to recognize that climate change presents a number of significant opportunities. Although several challenges stand in the way of businesses scaling up their climate-related initiatives and seizing further opportunities, steps can be taken to create an enabling investment environment.
This paper is aimed at members of the Bangladeshi private sector, developed based on consultation with in-country stakeholders. It outlines the case for action on climate change by the private sector, specifically, what opportunities are available for businesses to harness as a result of climate change? This includes accessing new sources of finance, particularly the Green Climate Fund (GCF). The report provides a snapshot of the available opportunities focusing on four sectors: energy, agriculture, insurance and banking/finance, including examples of companies at the forefront in developing new products and services and creating new markets in response to climate change. It concludes with guidance for businesses’ next steps in accessing the opportunities available to them now.
The key messages include:
- Climate change presents both risks and opportunities to the private sector. It acts as a stressor to existing risks and impacts business objectives and priorities, presenting a window of opportunity to take action on issues and areas that are already important to a business, such as water stress, logistical response to extreme weather events and waste management. Furthermore, climate change creates the opportunity to develop new products and services, expand and access new markets, benefit from cost savings, protect supply chains and build reputational benefits.
- Bangladeshi businesses are already benefiting from climate related opportunities, for example by developing and marketing climate resilient seeds or by developing a new market for solar home systems.
- Businesses face challenges in scaling up their climate-related initiatives and seizing further opportunities despite recognizing the significant opportunities available due to climate change.
- GCF can help address the barriers businesses face and help them harness opportunities, specifically through its Private Sector Facility (PSF), a dedicated financial window to mobilise and channel private capital and expertise at scale.
- Opportunities can be harnessed by building partnerships with other businesses, associations, NGOs, government agencies and development partners to take advantage of the resources, networks and expertise provided by each. International development partners in particular have the resources to help create and finance market opportunities.