Making Climate Companies’ Business
Summary
The document examines how national governments can engage the private sector to support climate adaptation, noting that business participation depends on a strong business case. It suggests that governments must move beyond treating the private sector as a homogenous unit and instead target specific actors—such as small and medium enterprises or specialized solution providers—whose interests align with public goods. While 'win-win' scenarios exist in sectors like water purification and agriculture, the paper warns of 'negative alignment' where private investments can lead to land grabbing or the displacement of local populations. It recommends a policy mix of incentives, procurement contracts, and collaboration with civil society to ensure private actions support rather than undermine community resilience.
Key insights
- Private sector engagement in climate adaptation is not automatic and depends on the existence of a viable business case for committing resources to long-term resiliency.
- Governments should avoid treating the private sector as a single entity, as it is fragmented by diverse capacities and interests; targeting specific types of businesses, such as small and medium enterprises, can better meet adaptation goals.
- Positive alignment between public and private interests can be found in sectors providing essential adaptation services, such as BASF's stress-tolerant plants for agriculture, Siemens' wastewater purification in Singapore, and Sunlabob's off-grid energy in Lao PDR.
- Private sector activities can negatively impact the public good through 'negative alignment,' including the use of foreign instead of local labor, the marginalization of people with informal land rights, and 'land grabbing' to secure food production in other countries.
- To promote beneficial private investment and discourage harmful actions, governments can use policy tools such as tax breaks, fast-track permitting, government procurement contracts, and partnerships with civil society for transparency.
Cite the original document
- APA
- del Pino, S. P., Kerdeman, M., Metzger, E., & Prowitt, S. (2010). Making Climate Companies’ Business. World Resources Institute. https://files.wri.org/d8/s3fs-public/2023-02/wrr-2010-11-question-8-response-4.pdf
- Chicago
- del Pino, Samantha Putt, Monika Kerdeman, Eliot Metzger, and Sally Prowitt. Making Climate Companies’ Business. World Resources Institute, 2010. https://files.wri.org/d8/s3fs-public/2023-02/wrr-2010-11-question-8-response-4.pdf.
- Wikipedia
- {{cite report |last1=del Pino |first1=Samantha Putt |last2=Kerdeman |first2=Monika |last3=Metzger |first3=Eliot |last4=Prowitt |first4=Sally |title=Making Climate Companies’ Business |publisher=World Resources Institute |date=2010 |url=https://files.wri.org/d8/s3fs-public/2023-02/wrr-2010-11-question-8-response-4.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{delpino2010making, author = {del Pino, Samantha Putt and Kerdeman, Monika and Metzger, Eliot and Prowitt, Sally}, title = {{Making Climate Companies’ Business}}, institution = {World Resources Institute}, year = {2010}, url = {https://files.wri.org/d8/s3fs-public/2023-02/wrr-2010-11-question-8-response-4.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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