Private sector engagement in climate plans
Adapting to climate change and mitigating greenhouse gas emissions is a joint responsibility of both public and private sector. Nationally determined contributions (NDCs) and national adaptation plans (NAPs) are crucial planning vehicles that offer the potential to scale up climate solutions in the land use agriculture sector. Given the right opportunities, food and agriculture companies and investors can play an instrumental role in meeting these climate action priorities by greening their supply chains, by investing in climate resilient goods and services and crucially by financing climate action.
Financing gap for the agriculture, forestry and other land-use (AFOLU) sectors is clear with less than 1% of private climate finance going to some sub-sectors, including AFOLU while 85 percent goes to renewable energy. This signals scope for a more substantial role from the private sector given the emerging investment opportunities in this space. In addition to helping bridge the financing gap, the private sector is an important source of technical knowledge, human capital, and innovation. By working with the private sector, public sector climate change interventions can target changes at multiple entry points in the agri-food system. Given the right conditions, the private sector can play an important role in implementing NDC/NAP priorities.
Private sector engagement (PSE) is a core component of SCALA’s overall approach, featuring as a cross-cutting theme in each of the three program outcomes, with outcome 3 focusing entirely on engaging the private sector.
The term ‘private sector’ encompasses a range of actors of various size and scope. Within SCALA, different actors have different roles to play, and are targeted based on their relevance to the various activities and interventions. PSE-related activities focus on:
- Mapping NDC/NAP and private sector priorities to identify common areas of interest.
- Facilitating multi-stakeholder collaboration to ensure the private sector can contribute towards developing joint public-private climate action initiatives.
- Assessing opportunities and risks for private sector in AFOLU sectors.
- Identifying de-risking strategies that can incentivize increased private sector engagement and investments in AFOLU sector
These areas build on UNDP’s Private sector strategy, which focuses on supporting governments to establish enabling policy and regulatory environments, while facilitating Multistakeholder partnerships and the guiding pillars of the FAO’s private sector engagement strategy which aims to strengthen strategic partnerships with businesses, as well as scale up and steer all private efforts to support innovation, investments, scientific expertise to achieve sustainable development goals.
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