Enabling private sector adaptation in developing countries and their semi-arid regions â?? case studies of Senegal and Kenya
Grantham Research Institute on Climate Change and the Environment
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Abstract: Climate change poses increasing risks to economic growth and development efforts across the world. Semi-arid regions (SARs) are one of the hotpots that have been identified by the Intergovernmental Panel on Climate Change as being particularly exposed and vulnerable to the impacts of climate change. Indeed,the majority of SARs across the world suffer from the combination of high levels of poverty,lack of development and high climate risk. Many of these issues will be further exacerbated by climate change. In addition,climate change will have significant impacts on economic activity within SARs,as the profits,competitiveness and operations of businesses become affected and production systems are altered to deal with the changing conditions. While a lot of climate change adaptation research in developing countries and semi-arid areas has focused on households and communities,particularly in rural environments,very little research has focused on the private sector. Yet,the private sector plays a critical role in contributing to developing countriesâ?? growth and development efforts and is increasingly recognised as a key actor that can help society successfully adapt and become more resilient to climate change. Indeed,national governments are placing increasing emphasis on private sector action on climate change adaptation. Nevertheless,there is limited research examining how to promote and facilitate private sector adaptation and in particular how governments can create an enabling environment to stimulate and incentivise domestic private sector adaptation. This is especially true for the private sector in developing countries.