The Resilience Opportunity Unlocking Climate Resilience through Public Private Collaboration 2025

Page 14 of 28 · WEF_The_Resilience_Opportunity_Unlocking_Climate_Resilience_through_Public_Private_Collaboration_2025.pdf

ARCHETYPE EXAMPLE 2 Strengthening supplier climate resilience A global food and beverage company partnered with smallholder farmers in West Africa to implement climate- smart agricultural practices to enhance both crop resilience and supply chain stability. Background and context The company’s supply chain relies heavily on smallholder farmers producing grains, dairy and coffee. Facing unpredictable rainfall patterns, soil degradation and rising temperatures, these farmers were increasingly unable to meet volume and quality requirements, posing risks to both procurement and climate commitments. The company sought to address this by financing adaptive measures at the farm level. Solutions deployed Through a climate-smart agriculture initiative launched in partnership with a local agricultural non-governmental organization (NGO) and a regional development fund, the company supported thousands of farmers across two states. Interventions included regenerative soil management, drought-tolerant crop varieties, agroforestry systems and digital advisory tools. Farmers received training, on-site demonstrations and access to premium markets through formal purchase agreements, all under a structured “regenerative supply chain” framework. Impact Within the first year, participating farmers reported significantly improved yield stability and resilience to climatic shocks. Income predictability increased due to premium pricing and reduced crop losses. The company achieved secure and traceable supplies for key commodities, enhanced its corporate profile and generated positive local economic outcomes, further supported by recognition from regional agricultural authorities. Source: Nescafé. (2024). Nescafé Plan 2030 Progress Report 2023; TechnoServe. (2025, 6 May). AGRA, Nestlé, and TechnoServe Launch Groundbreaking Climate-Smart Agriculture Initiative in Nigeria [Press release]. ARCHETYPE EXAMPLE 3 Climate-resilient river diversion via structured public-private finance In a flood-prone region of the northern US, a private consortium partnered with a public authority and federal agencies to co-develop the stormwater diversion channel component of a comprehensive flood diversion system protecting an urban corridor. The construction of the stormwater diversion channel used a design-build-finance- operate-maintain (DBFOM) contract model to mobilize long- term private capital for climate resilience infrastructure. Background and context Repeated large-scale flooding events have threatened tens of thousands of homes as well as critical infrastructure across urban and agricultural zones. A traditional public delivery model lacked the speed and financial flexibility to address rising climate risks. To accelerate action and spread cost over time, a hybrid PPP structure was adopted to deliver one-third of the comprehensive project (the stormwater diversion channel). Solutions deployed The private consortium financed the majority of the private capital investment using a mix of private equity and green- labelled infrastructure bonds, alongside federal and local contributions. In return, the consortium receives construction milestone payments and annual availability payments over a 30-year operations and maintenance period, contingent on the infrastructure being operational and maintained to performance standards. These payments are drawn from a dedicated regional authority budget, secured through multi-level governmental agreements. Impact The comprehensive project is projected to protect 260,000 people and billions in economic assets from 100-year and 500-year flood events. Private-sector participants associated with the stormwater diversion channel benefit from reliable, long-term payment flows tied to service delivery, while public actors gain rapid delivery, transferred risk and reduced disaster response costs. The model demonstrates how performance-based financing can support climate resilience at the regional scale. Source: Metro Flood Diversion Authority; U.S. Department of Transportation Federal Highway Administration. (n.d.). Project Profile: Fargo-Moorhead River Flood Diversion P3 Project, North Dakota. https://www.fhwa.dot.gov/ipd/project_profiles/fargo_moorhead_flood diversion.aspx. The Resilience Opportunity: Unlocking Climate Resilience through Public-Private Collaboration 14
Ask AI what this page says about a topic: