Blog Post

14 Sep
By: Ferdinand Musungu 0

PRIVATE SECTOR ENDORSES OPERATIONALIZATION OF THE ONE-STOP PLATFORM FOR CLIMATE CHANGE ADAPTATION IN KENYA – CBIN-K

The Kenyan private sector has endorsed the operationalization of the Climate Business Information Network Kenya (CBIN-K), a one-stop shop for Climate Change Adaptation Solutions in Kenya. The endorsement happened during a stakeholders’ virtual meeting held on 10th September 2020.

During the meeting, the Food and Agriculture Organization of the United Nations (FAO), the Head of Resilience and Livelihoods Systems Unit, Dr. Barrack Okoba remarked that the agriculture sector is most vulnerable to climate shocks and there is, therefore, a need to enhance the capacity to address climate risks while ensuring active participation of the private sector in delivering climate solutions. FAO has developed a number of strategies to respond to climate change, but private sector has not been actively engaged in delivery of the solutions.  As an implementing partner for the Green Climate Fund (GCF), under the Kenya National Designated Authority (National Treasury and Planning) and in collaboration with KEPSA, for the GCF Readiness Support Project on “Enhancing Capacity for Planning and Effective Implementation of Climate Change Adaptation in Kenya, ” FAO is seeking to support private sector with strong knowledge base so to accelerate private sector engagement and investments in the adaptation process. FAO has been working on providing evidence-based interventions on climate change adaptation at both national and county level and the identification and establishment of a local network of private entities integrating climate change adaptation in their business will go a long way to strengthen resilience of the country.

 Mr. Hillary Korir, the Economist and Certified Expert in Climate Change Adaptation at The National Treasury and Planning under the Climate Finance Unit, highlighted the role that the National Treasury and Planning had played in supporting mainstreaming and budgeting of adaptation measures and green fiscal reforms in the country. This include development of the National Climate Finance Policy for Kenya, tracking of climate finance through budget coding in the IFMIS systems, Climate Change Public expenditure review for Kenya, development Green fiscal policy tools for providing incentives to green investments, establishment of GCF-National Designated Authority at the National Treasury, design of climate change fund in Kenya and low carbon –green economy resource mobilization strategy. The GCF Readiness Support program was developed by the National Treasury and Planning. Component four of the project is aimed at strengthening the capacity and institutional alignment of the private sector to actively engage in implementation and investment in climate change adaptation in Kenya. 

In her opening remarks, the KEPSA Deputy CEO, Eng. Martha Cheruto highlighted that, for a long time, the climate change adaptation is still seen as more of a public sector agenda in comparison to mitigation.  Often in many private sector entities, climate change is perceived as an extension of the Corporate Social Responsibility (CSR) rather than an integrated model to business operations and strategy. Addressing climate change as a business strategy rather than a corporate social responsibility can go a long way in helping businesses to prepare for and reduce these risks, innovate adaptation opportunities. To integrate and deliver climate change solutions at scale though, the private sector faces several challenges.  One significant constraint in the private sector is the lack of capacity and technical support to develop or evaluate projects with a climate change lens. This lack of understanding of specific types of climate change investments and their risk profiles means that private sector strategists and financial institutions often find it difficult to develop and structure appropriate programs and products. KEPSA has a critical role to create awareness to its members on climate change adaptation and mitigation interventions as well as emerging business opportunities.  KEPSA lauded the support and the collaboration of GCF through National Designated Authority (National Treasury and Planning), Ministry of Environment and Forestry (Climate Change Directorate), the NAP Global Network and the Food and Agriculture Organization of the United National in establishment an operationalization of  Climate Business Information Network as a collaborative cross-sectoral platform that will provide exclusive engagement of private sector in climate change solutions by providing information, capacity building and technical support especially in development and design of GCF proposals.

The Chief Operating Officer of the Kenya National Chamber of Commerce and Industry (KNCCI), Mr. Patrick Nyangweso in his remarks observed that one of the greatest global challenges today is the need to integrated environmental sustainability with economic growth.  With appropriate policy frameworks, it is possible to creating jobs, safeguarding energy access and security. There is a need to ensure effective private sector engagement in meeting constraints that engaging the private sector is crucial is the employment of preventive measures for climate change’, to leveraging public resources by tapping into private sector capacities and to promote innovative and adaptive products for climate change. The small and micro enterprises are critical players in climate change and hence their capacity needs to be enhanced in realizing sustainable development as guided by sustainable development goals in this regards SDG 13. The Kenya National Chamber of Commerce, therefore, welcomed and supported the establishment of the CBIN-K for the realization of coordination of adaptation solutions and policy coherence, strengthening education and training and collaboration of stakeholders to enhancing the country’s resilience to climate change. 

The Head of Consulting and Business Development at Kenya Association of Manufacturers (KAM) Ms. Joyce Njogu, gave highlight on the role and progress made by the manufacturers in implementing green growth and climate change solutions’. Since 2001, KAM has supported its members and enhanced their capacity in investing and providing solutions’ for resource efficiency i.e energy efficiency, water efficiency, waste management, technical support, development of 50 bankable projects and financing of 27 projects through the SUNREF project, certification of 400 energy managers, organization of energy management awards.   KAM had conducted a total of 1300 energy audits and 50% of the recommendations adopted by the participating companies, conducted 30 Waste Water Audits. The energy audits impact assessment indicated that 51 companies had combined savings of 11,800 Megawatt per hour from grid electricity, resulting in a reduction of 1.34 megawatt of power demand,  savings of  23300 tones’ of biomass and reduced the demand for 651 kilograms of liquefied gas. This has resulted in a reduction of 15,800 tones’ of carbon emissions. KAM has developed an environmental compliance support program for the industry to help build compliance of industry and increase energy efficiency and conservation measures’ that enhance compliance and training of 50 certified measurements and verification protocols’ personnel.  KAM, therefore, supports the establishment of Climate Business Information Network Kenya and will offer some of her learning’s to the network to help propel climate change solutions for the other sectors of the economy and the country as a whole.

The National Adaptation Processes (NAP) Global Network Senior Policy Advisor, and Lead, Resilience Program, Mr. Alec Crawford and the Manager of the NAP Global Network, Mr. Christian Ledwell, shared NAP Global Network Approach in driving climate change adaptation solutions across countries and the global trends in integrating private sector in adaptation processes. NAP is a domestic process of integrating climate change adaptation into developing planning and budgeting at national, sectoral and sub-national levels.  A total of 120 countries have NAP underway including Rwanda, Ghana, St Lucia, among others.

The Network offers Support is through Peer Learning Forums and The Government of Kenya and KEPSA were part of the Peer Learning Summit held in the year 2018 in the Netherlands. NAP global network also supports national-level actions and knowledge analysis in engaging the private sector in NAP processes.  The engagement of the private sector in the adaptation process is very significant both as a reputational strategy and as a business strategy. In addition, private sector engagement in NAP process is required for the creation of jobs needed to support adaptation, development of goods and services needed for societies to become more climate-resilient and the need for direct and indirect financing of adaptation actions.  Some of the drivers and also on the flip side barriers can generally be categorized as capacity development, financing, institutional arrangements, and information sharing. NAP Global Network has developed a tool kit on how governments can engage the private sector in the NAP process. The tool kit was launched early in the year 2020.  It is highly recommended to develop a private sector engagement strategy for NAP, to articulate the business case for adaptation and to identify and cultivate private sector champions that can share their success stories and failure to promote crowding in. CBIN-K will therefore be a key catalytic platform for Kenya’s private sector engagement in climate change adaptation.

The CBIN-K Coordinator, Ms. Faith Ngige, highlighted the approach of CBIN-K as a local network of private sector entities and businesses that are integrating climate change in their business models and strategies. It is operationalized under the GCF Readiness and Preparatory Support for strengthening private sector engagement and investment in adaptation process in Kenya. It is designed to build the capacity of the private sector to unpack the climate change and the country’s adaptation frameworks through the private sector lens. It is a cross-sectorial platform and will develop capacity building and awareness programs, undertake empirical evidence on the business case for private sector engagement in adaptation and facilitate the development of private sector strategy and took kit for the GCF funding concepts’. It will be an information and best practice sharing platform for climate adaptation solutions and will forge strong linkages and collaboration with the government. 

In Kenya, there exists a best practice in climate change adaptation integration in the business value chain as shared by The Head of Sustainability for Kenya Breweries Limited; Ms. Arnolda Shiundu   Kenya Breweries Limited has integrated Climate Change Adaptation as part of the Growing Value Together with Value Chain Actors.  This is in particular focus to support provided to farmers in the provision of adaptive seed varieties for sorghum, contract farming through the “Jilishe Kisha Ukuze Program”, driving of sorghum commercialization, promotion of water stewardship, environmental conservation through forestry. Such case studies will be key in crowding private sector innovations for adaptation in Kenya.

Members present in the meeting included representatives from Government, private sector business associations, Small and Micro and Medium Enterprises’ (SMEs), development partners and community-based organizations’ who endorsed the formation of the Climate Business Information  Network Kenya as a one-stop platform for sharing, capacity building and reporting of climate change adaptation solutions by  Kenyan enterprises.

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