Presentation by Julie Dekens, IISD, given at the event "Financing Adaptation: Private Sector Engagement in NAP Processes" held in November 2017 at the German Development Institute's Interconnections Zone 2017.

1. Coordinating
Climate-Resilient
Development
The role of the private
sector in NAP processes
Julie Dekens
November 11, 2017
COP 23, Bonn

2. Financing is needed:
• Throughout the NAP process
• On an on-going basis
The amount of financing needed:
• Will vary from country to country
• Expected to be significant
Financing needs of
the NAP process

3. The NAP Process from a Financing
Perspective

4. Amount of financing required
• Greater financing needed in the
implementation phase
Actors involved
• Development phase: Primarily government
• Implementation phase: Involves a broader
range of government and civil society actors
Differences between
the phases:

5. Potential sources of financing for the
NAP process
PrivatePublic
International
Domestic
Private enterprises
Private financiers
National and sectoral budgets
Sub-national budget
Domestic climate change funds
Bilateral providers
Multilateral climate funds
Non-climate focused multilateral
funds
Multilateral development banks
Countries will need to combine financing from different sources

6. Already making investments in climate
adaptation but largely ‘invisible’
Main reasons for investing in climate
adaptation:
• Business continuity and reputation
• Capitalizing on new markets and business
opportunities
• Compliance with policies, regulations and
investors’ interest
But experience to date is limited
Private sector adaptation
financing

7. Private financiers
(e.g. microfinance
institutions, commercial
banks, institutional
investors)
Financing
What are the different ways of involving the
private sector in the NAP process?
Implementation
of climate adaptation
actions prioritized
through the NAP
process
Private enterprises
(e.g. SMEs, corporations,
multinationals)
Private funds
invested to climate
proof their own
business operations

8. Private enterprises
The role of governments in engaging the
private sector in the NAP process
Implementation
of climate
adaptation actions
prioritized through
the NAP process
Financing
Government
(e.g. national, sub-national)
Develop and implement NAP
priorities
(Can act through budgets, climate funds,
development banks)
Financial and
non-financial
incentives
Public finance
investing to
build its
capacity to
engage the
private sector
Private financiers
Financing

9. Non-financial incentives
» Developing and raising awareness of the
business case for financing climate adaptation
» Providing access to tailored climate data and risk
assessments
» Conducive policies and regulations
Government’s incentives to
meet NAP priorities
Financial incentives
» Mechanisms for increasing national public
revenue from the private sector (e.g. levies, taxes,
royalties)
» Providing the right economic signals (e.g. tax
breaks, risk guarantees, start-up money)
» Funding windows for the development of climate-
resilient products and services

10. Resource
Guidebook on financing NAP processes
• Available in English, French, Spanish
Upcoming…
• Webinar series
• Domestic public finance (September 2017)
• International public finance (November 30th)
• Private finance (January 2018)
• Case studies
• Animated video

11. www.napglobalnetwork.org
info@napglobalnetwork.org
Twitter: @NAP_Network
Financial support provided by Secretariat hosted by

12. Private sector actors, financial instruments
and associated scales of finance