This document discusses identifying business opportunities that arise from climate change. It provides an agenda for a summit on the topic, including opportunities presented by climate change, the GIZ Climate Expert approach, and an exercise. The GIZ approach is a 4-step climate risk assessment tool for small and medium enterprises. It identifies 7 impact areas and provides an assessment grid and Excel tool. The document outlines types of climate-related business opportunities for various sectors like consumer goods, building materials, agriculture, and services. It also presents real case studies of companies in Morocco, Rwanda, and Costa Rica that have identified climate-related opportunities.

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Na-Hyeon Shin,
Peer Learning Summit Rotterdam
11.07.2019
Identifying Climate Change
Business Opportunities

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Agenda
I. Opportunities of climate change
II. GIZ Climate Expert Approach
III. Exercise: Identification of business opportunities

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I. Opportunities of climate change
ToC - Session 4

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Why should MSMEs adapt?
• Build resilience
and avoid future
costs
• Create new products/services
New
products/
services
Direct risks
Risk and
Opportunity
Assessment
Indirect risks
Growth
Survival
• Increase efficiency
• Anticipate regulation
• Improve reputation
• Tap into new funding
streams
Risk
Management
Competitive
Advantage
Business
Opportunity

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Beneficial effects of climate change
Business Opportunity
New market opportunities for products and
services in response to adaptation
Easier-to-manufacture products due to more
favourable climate conditions
ToC - Session 4
Competitive
Advantage
(= positive side effects
of good adaptation
measures)
Cost reductions in operations
Reputational gains among key stakeholders
Development of skills that will become more
important in the future
Anticipation of regulation

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Two types of business opportunities:
• Business opportunities in new markets for adaptation
products and services
Strategic development of innovations that tap into a new
niche in the market that opens up due to climate change.
1. Market
Business
opportunity
• Easier-to-manufacture products or services due to
changed climate conditions
Making use of changed climate conditions. This can
happen without major efforts from the company but in
some cases a shift of input sources is required.
2. Production condition
Business
opportunity
ToC - Session 4

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Sector Opportunities
Consumer goods Small-scale cooling systems, etc.
Building materials Disaster resilient building material (e.g. compressed stabilized
earth blocks (CSEB)), insulation foam, etc.
Manufacturing Energy efficient technology, flood protection gear, industrial
cooling systems, etc.
Agriculture Climate smart seeds, drip irrigation systems, disaster resistant
storage facilities, water-proof packaging, etc.
Services Climate and weather forecasts, etc.
Financial services Access to local and international green funds
Promising Prospects for Companies

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• Business opportunities in new markets for adaptation
products and services
Strategic development of innovations that tap into a new
niche in the market that opens up due to climate change.
1. Market
Business
opportunity
• Easier-to-manufacture products or services due to
changed climate conditions
Making use of changed climate conditions. This can
happen without major efforts from the company but in
some cases a shift of input sources is required.
2. Production condition
Business
opportunity
ToC - Session 4

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II. The Climate Expert Approach
ToC - Session 4

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The Climate Expert Approach
• A climate risk assessment tool tailored to SMEs
• Practical 4-step approach and working materials for companies
• The tool can be accessed on www.climate-expert.org

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Climate Expert Approach – 7 Impact Areas
Themencafé G 120

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Climate Expert Assessment Grid and Excel Tool
Climate Expert Assessment Grid and Excel Tool

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www.climate-expert.org

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III. Exercise
Identifying Opportunities for Business from Climate Change
ToC - Session 4

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Risk Management and
Business OpportunitiesClimate
change
phenomenon
& impact on
business
Changes in
markets /
production
conditions
Key activities Target group
Key resources Revenue/ costs
Value
Proposition
Enabling
Conditions
Effectiveness Feasibility
Positive Side
Effects
Negative Side
Effects

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Real Case Studies – Morocco & Rwanda, Costa Rica
Citrus processing and export
cooperative - Morocco
Eco-adventure company –
Costa Rica
Coffee processing company -
Rwanda

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Thank you!
Please visit:
Na-Hyeon Shin
Climate Policy Support Programme
Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ) GmbH
P: +49 228 4460 3980
E: na-hyeon.shin@giz.de
www.climate-expert.org