Building Climate Resilient Value Chains
- 1. Building Climate Resilient Value Chains Session 10 – Enabling Factors, Part IV, Capacity Building Peer Learning Summit, Rotterdam, July 9-11 2019 Delphine Clement, ITC Philippe Alléau, Consultant ITC
- 3. Our project in Morocco and Kenya
- 4. Climate Expert Tool CC impacts Identification of climate change phenomena and their impacts 1 CC adaptation measures Identifying and planning adaptation measures 3 Cost- benefit analysis CC risks and opportunities Assessing climate change risks and opportunities 2 CC adaptation strategy Developing an adaptation strategy 4
- 5. 5Risk assessment Probability: How likely is it that the negative business effect will occur? Magnitude: How extensive is the expected business effect when it occurs? Risk (likelihood * magnitude of negative business effect) # Climate impact Negative business effect Description Timeframe considered P M R Prio Notes and comments 1 2 3 4 5 6 7 RESULTS of the Cost- Benefit Analysis Currency 0 Discount Rate 3% Risk 0 Adaptation measure 0 Year Discount Factor Discounted total costs per year Discounted total benefits per year From To Average From To Average Now (0) 1.00 0.00 0.00 0.00 0.00 0.00 0.00 1 0.97 0.00 0.00 0.00 0.00 0.00 0.00 2 0.94 0.00 0.00 0.00 0.00 0.00 0.00 3 0.92 0.00 0.00 0.00 0.00 0.00 0.00 4 0.89 0.00 0.00 0.00 0.00 0.00 0.00 5 0.86 0.00 0.00 0.00 0.00 0.00 0.00 6 0.84 0.00 0.00 0.00 0.00 0.00 0.00 From To Average 7 0.81 0.00 0.00 0.00 0.00 0.00 0.00 Net Present Value (NPV): - - - 8 0.79 0.00 0.00 0.00 0.00 0.00 0.00 Cost-Benefit-Ratio (CBR) #DIV/0! #DIV/0! #DIV/0! 9 0.77 0.00 0.00 0.00 0.00 0.00 0.00 Internal Rate of Return (IRR): #NUM! #NUM! #NUM! 10 0.74 0.00 0.00 0.00 0.00 0.00 0.00 Return on Investment (RoI): #DIV/0! #DIV/0! #DIV/0! Sum over years: 0.00 0.00 0.00 0.00 0.00 0.00 Payback Time (in years) 1 1 1
- 6. 6 New products and services Analysis of risks and opportunities Directs risks Indirects risks Company growth Business continuity BUSINESS OPPORTUNITIES: Create new products & services COMPETITIVE ADVANTAGE: • Increase efficiency • Anticipate regulations • Improve reputation • Benefit from new financing Manage RISKS: • Be more resilient to current and impacts and avoid potential future costs Adapting is managing risks and seizing opportunities
- 7. Project works along International value chain & business ecosystem Producers SME processors Local subsidiary of buyer International buyer Combined project approach
- 8. Project work with SMEs and TISIs • Beneficiary SMEs: • An online self-evaluation on how prepared they are for climate change risks (hosted on www.sustainabilitymap.org) • Online training on the Climate expert approach • Face-to-face coaching with a trained industry expert on creating an adaptation strategy incl. bankeable measures (in presence of other value chain actors) • Trade and Investment Support Institutions (TISIs): • Training of trainers on the Climate Expert Approach to further implement the approach beyond the duration of the project • Advisory services on integrating the Climate Expert Approach into the offering of the collaborating TISIs 8 Combined project approach
- 9. Lessons learnt 9 1. Adapt approach to value chain needs - sensitization to CC depends a lot on sector – agriculture vs. manufacturing 2. Involvement of a variety of stakeholders – international buyers and suppliers 3. Data availability - integrate climate information and forecast in business strategies and early warning systems for companies 4. Fill the gap in the offerings of TISIs (Trade and Investment Support Institutions) 5. Make the business case for climate adaptation - explore innovative solutions for investment in resilience and green finance 6. Greater promotion of standards and certification that promote CCA