The Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB) Group, and the Nordic Development Fund (NDF) have announced the launch of a $11,865,000 regional facility, PROADAPT, which will support micro, small, and medium enterprises (MSMEs) in building climate resilience and accessing green business opportunities. The agreement establishing PROADAPT was signed March 15 in Panama City, Panama, during the 2013 Annual Meetings of the IDB Board of Governors.
Nancy Lee, general manager of the MIF, said, “Climate change is already posing a serious threat to businesses, their supply and distribution chains, and to the health of local communities. PROADAPT will be an excellent platform to help small businesses respond to the climate risks that threaten their assets, and to foster new business models needed to help households, enterprises and communities seize new opportunities for participating in green growth.”
PROADAPT will work with a projected 2,000 MSMEs to develop new tools, business models, and knowledge that will increase their climate resilience—for example, their ability to anticipate damage from and minimize the effects of extreme weather events, modify production practices and value chains, withstand interruptions in basic services (such as electricity and water), and manage water at production sites. The facility will also work with MSME-related institutions, including local public authorities, to create greater awareness and knowledge of climate resilience among MSMEs.
Participating MSMEs will receive support in identifying and accessing business opportunities that stimulate green growth. These opportunities are driven by the demand for new services and products that households, enterprises and public entities need to protect their businesses, personal property, communities and public assets. Enterprises with the right business models and know-how will tap a growing number of market opportunities as climate threats evolve.
Pasi Hellman, Managing Director, said: “PROADAPT is an innovative and important activity which will enable unique support for the private sector in climate change adaptation – an area which has been largely neglected until now. It will also help firms to create business opportunities in an area of growing importance. Support to PROADAPT will further strengthen the successful collaboration between the MIF and NDF which already covers several financing modalities of innovative nature.”
PROADAPT will leverage lessons learned from recent MIF initiatives related to climate adaptation, such as a project with Caribsave, a Caribbean-based initiative that assists MSMEs and communities in implementing climate adaptation plans; and the Entrepreneurship Center in Tabasco, Mexico, where the MIF helped 500 SMEs in the tourist, retail and food processing sectors to improve their climate resilience.
PROADAPT will also be an important source to fill knowledge and information gaps on climate resilience for MSMEs. The Facility will create a climate adaptation knowledge online platform and network, AdaptAmericas, which will share knowledge, models, methodologies and lessons learned. NDF's participation in this innovative initiative will facilitate the replication and scaling of successful pilot projects in the region, as well as in Africa and Asia, thereby offering opportunities for practical South-South collaboration and knowledge sharing on climate resilience.
About the MIF
The Multilateral Investment Fund (MIF), funded by 39 donors, supports private sector-led development benefitting low-income populations and the poor - their businesses, their farms, and their households. The aim is to give them the tools to boost their incomes: access to markets and the skills to compete in those markets, access to finance, and access to basic services, including green technology. A core MIF mission is to act as a development laboratory - experimenting, pioneering, and taking risks in order to build and support successful micro and SME business models. More information at www.fomin.org
About the Nordic Development Fund
The objective of the Nordic Development Fund's (NDF) operations is to facilitate climate change investments in low-income countries. NDF finances in cooperation with bilateral and multilateral development institutions. NDF’s operations mirror the Nordic countries’ priorities in the areas of climate change and development. The operations are financed from the development cooperation budgets of the five Nordic countries.