KEPSA participated in the Peer Learning Summit (PLS), co-hosted by the National Adaptation Plan (NAP) Global Network and the Government of the Netherlands that took place from July 9 to 11th, 2019, in Rotterdam, the Netherlands.
PLSs are highly dynamic and interactive workshops that allow participants to share lessons on what has (and has not) worked as well to expose participants to new ideas and approaches related to national adaptation planning and action. The NAP Global Network is a group of individuals and institutions who come together to enhance bilateral support for the NAP process in developing countries. The national adaptation plan process is a domestic process that integrates climate adaptation into development planning and budgeting at national, sectorial and sub-national levels.
Amb. Carola van Rijnsoever, Director, Inclusive Green Growth, Ministry of Foreign Affairs of the Netherlands, in her opening remarks noted that adapting to the impacts of climate change, whether at the national, sub-national or community level, is not the responsibility of national governments alone. She pointed out that it requires the coordinated input of multiple stakeholders, including private sector, adding that a strategic and well-informed private sector in climate change adaptation planning and activities must be a key part of all countries’ efforts to adapt to the impacts of climate change; hence private sector should be key partners in the design, financing and implementation of adaptation priorities.
In his remarks, Mr. Alec Crawford, Senior Researcher, NAP Global Network Secretariat, highlighted the objectives of the Peer Learning Summit as providing an opportunity to share best practice, insights, country experiences, on engaging the private sector in national adaptation planning processes; to identify enabling factors for private sector engagement in the NAP process; and the needs and gaps for government action from the perspective of private sector actors in key priority sectors such as tourism and agriculture in order to facilitate their engagement in NAP processes. The forum also provide an opportunity to reflect on the role that donors and climate support initiatives can play in fostering greater private sector engagement in NAP processes.
Engaging the Private Sector in NAP processes
Businesses and investors being the key engines of economic growth in developing countries. They account for 60 per cent of gross domestic product, 80 per cent of capital flows and 90 per cent of jobs, are critical stakeholders in adaptation. They are relied upon to create jobs needed to support adaptation, to develop the products and services needed for societies to become more climate-resilient, and to finance—directly or indirectly—many adaptation actions. The National Adaptation Plan process offers a medium- and long-term vision of national adaptation action, aligned with development plans and with a supporting regulatory and policy framework. If properly communicated, it foregrounds a country’s key climate vulnerabilities. It therefore can provide all stakeholders, including the private sector, with a stable and predictable roadmap for a government’s priorities on national adaptation. Adaptation presents an opportunity for business to manage risks for business continuity and reputation, capitalize on new markets and business opportunities as well as enhance compliance with policies, regulations and investors interests.
Enabling Factors for Private Sector Engagement in NAP processes
There are a number of factors that governments, with the support of development partners, civil society and private actors, can put in place or strengthen, enable and incentivize the private sector engagement in the NAP process. This include addressing barriers that commonly inhibit private sector engagement in adaptation processes. The barriers can be informational, financial, technical and institutional. Informational needs can be both on current and future climate conditions and on corresponding adaptation options which need to be generated and shared broadly with private sector actors. Private sector actors may lack a detailed understanding of what climate change is, how it may impact their operations and what adaptation options are available to them to increase their climate resilience.
It is imperative that governments work to break down these barriers to ensure that private enterprises understand the challenges and how to address them. Financing and Capital markets and the allocation of financing can be made to be more efficient, incentives for engagement can be adopted, and the risks associated with adaptation investments can be reduced. The institutional arrangements required to ensure active collaboration on adaptation planning and design among government, private enterprises and financiers can be established, with a strong foundation of policies and regulations that support private engagement in climate adaptation. Technical capacities for private sector can be built among those expected to design, deliver and monitor adaptation actions.
Participants also undertook their individual country assessment and identified key private sector actors to be engaged, institutional arrangements to be develop, engagement strategy to employed and priority actions enabling factors such capacity building, information sharing and financing. Kenya has strong institutional arrangement to engage private sector in climate change and adaptation. KEPSA as the umbrella body of private sector in Kenya, has taken a leading role in shaping the policy and legal framework for addressing climate change and adaptation in Kenya.
Through KEPSA’s public private dialogue engagements, the Government of Kenya was able to closely work with private sector in developing several policies and legislative frameworks including the national climate change action plan( NCCAP) both for year 2013- 2017 and the second NCCAP for the period 2018 – 2022. private sector also made contribution to the adaptation technical analysis report, climate budgeting coding and tracking training manual, Climate Change Act 2016, National Adaptation Plan for (2015-2030), review of environmental audit and impact assessment regulations that mainstreams adaptation and mitigation factors in environmental impact assessment ( EIA’s), as well as the development of the climate change finance regulations. Some of the adaption projects and programs being implemented by private sector in Kenya include:
- The Kenya livestock insurance program, a first one of its kind was piloted by the Government of Kenya in partnership with bilateral partners and Kenya Insurance companies, to pilot in Wajir and Turkana counties the use of satellite based index to offer livestock insurance to support pastoralists’ access and manage risks and losses associated with drought amongst smallholder farmers. The pilot project was a success and has been scaled up. It will also be widened to include crop insurance.
- The First Africa Water Fund known as the Upper Tana Nairobi Water Fund , as established under the Replenish Africa Initiative (RAIN) by Coca-Cola, in partnership with The Nature Conservancy, Nairobi City Water & Sewerage Company, Kenya Electricity Generating Company (KenGen), Pentair Inc, East Africa Breweries Ltd, International Centre for Tropical Agriculture (CIAT), Global Environment Facility (GEF), The Government of Kenya, Water Resources Management Authority (WRMA), Tana & Athi Rivers Development Authority (TARDA), International Fund for Agriculture (IFAD) and Frigoken Kenya Ltd.
- Between years 2017 –2019, the water fund has assisted 596,000 people with improved water access; economically empowered20, 000 women, 24,500 farmers are applying soil conservation and water-saving methods, and an additional 220 Water Pans were excavated.
- The sustainable inclusive business knowledge center established by KEPSA in collaboration with the Government of the Netherlands’ has played a key role in mainstreaming sustainable , resilient and inclusive business models in private sector in Kenya. to date SIB has enhanced capacity of over 2500 business in sustainable and inclusive business models and transition to circular economy in waste management.
- Bidco Africa, has a contract farming arrangement for bamboo tree planting for 1 billion bamboo trees by small scale farmers provides a guaranteed market for farmers while enhancing tree cover for Kenya.
- The “jilishe kisha ukuze,” initiative by Kenya Breweries Limited (KBL), is a local raw material sourcing of sorghum where KBL provides ready market to small holder farmers in arid and semi-arid lands (ASAL), who grow sorghum and millet in Kenya. It’s currently implemented in 6 counties.
- The Safaricom foundation water harvesting program has dug seventeen boreholes have been dug and water harvesting equipment installed across the country. Communities’ have also been trained on water harvesting techniques. 75,200 community members between years 2017 -2019.
- Kenya Bankers Association in partnership with Kenya Green Bonds Program. World Wildlife Fund and in collaboration with KEPSA undertook a research titled, “Assessment of Green Investment Opportunities in Kenya.” The objective of the study was to quantify the investment opportunity for green investments in Kenya, to identify barriers and to propose solutions for creating bankable projects. 3 three key sectors prioritised (1) Agriculture Livestock and Forestry (2) Transport and (3) Manufacturing.
- Trade for Sustainable development hub ( T4SD) was established by the International Trade Center ( ITC) at the Kenya Climate Change Innovation Center( KCIC) to support small and sized enterprises’ for green economy by offering technical assistance for sustainability standards, climate resilience, resource efficiency and building green business strategies to access green finance and international markets. ITC in partnership with GIZ, have also developed the climate change expert tool for assisting business develop their business climate change and adaptation strategy.
To enhance engagement with private sector, governments can engage private sector develop a private sector engagement strategy for the NAP, generate and communicate climate data and information, support research and development for adaptation, articulate the business case for adaptation, Build the capacity to understand and respond to climate vulnerability/risk, Use the NAP process to communicate the country’s medium-to long-term adaptation priorities as well as identify and cultivate private sector champions, and share stories of success and failure to promote crowding-in adaptation.
KEPSA, The Ministry of Environment and Forestry with the support of NAP Global Summit and the International Trade Center (ITC) will work on building capacity of business in adaptation, create awareness and capacity to use the climate expert tool for development of business strategy for climate change that includes assessment of risks caused by floods, drought, increasing temperatures, sea level rise, rainfall variability and how they impact on business. The proposed private sector engagement framework under development by the Ministry of Environment and Forestry and Private sector for the implementation of the Second national climate change action plan (2018 – 2022) and adaptation technical analysis priorities will also be finalised.
The NAP Peer Learning Summit brought together participants from 14 countries including Kenya, Ghana, Sierra Leone , Saint Lucia, Rwanda Morocco, Vietnam, Brazil, Colombia, Jamaica Côte d’Ivoire and Jordan, bilateral partners including the Ministry of Foreign Affairs of the Netherlands, Global Center on Adaptation, Green Climate Fund, NDC Partnership, PIER ( Private Investment for Enhanced Resilience), Climate Finance Advisors, GIZ, Red Cross Red Crescent Climate Centre, UNFCCC and International Trade Centre, the NAP Global Network Secretariat.
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