Bridging Gaps: Investigating Private Sector Financing of Ecosystem-based Adaptation to Climate Change. A closer look at the Greater Mekong Subregion

Sammanfattning: Tackling the challenge of adaptation to climate change in developing countries will require the mobilization of new and additional funding. Like other adaptation approaches, Ecosystem-based Adaptation (EbA) is threatened by a growing adaptation funding gap. Further private sector involvement, for instance in the context of innovative direct financing models for EbA, is one way to help bridge the gap. This study aims to enhance understanding of direct financing models for EbA that involve the private sector by investigating what motivates and enables private sector engagement in the context of the Greater Mekong Subregion (GMS). To do so, the author adopts an inductive approach supported by a literature review, and two case studies, namely: Microfinance for Ecosystem-based Adaptation (MEbA) and Supply Chain Approach for Ecosystem-based Adaptation (SCA for EbA). To perform an analysis within and between cases, an analytical framework constituted of eight categories of factors is extracted from the findings of the case studies. These are comprised of three categories for motivational factors: (i) Climate change risks; (ii) Business opportunities; and (iii) Societal contribution; and five categories for enabling factors: (a) Stakeholders’ requirements; (b) Market factors; (c) Sustainability awareness and integration in the organisation; (d) Knowledge and resources; and (e) Government support and policy frameworks. The overall results of the study show that some of the unique characteristics of EbA constitute the basis of what motivates and enables private actors involvement in the EbA financing models. In addition, some of the elements that influence private sector adaptation to climate change in general also play a role in engagement of private actors in the context of EbA. While the study mainly focuses on experiences in Cambodia, Vietnam and Thailand, it draws conclusions and recommendations that are likely to be applicable across the GMS.