(3) act as a facilitator for the private sector by providing information and support for
adaptation across different sectors.
(4) provide incentives for adaptation by establishing suitable economic regulatory
frameworks.
(5) address, where relevant, market failures and barriers to infrastructure adaptation
actions.
Without government intervention, there are a number of barriers which can often
inhibit economically efficient outcome. Such barriers include:
(1) Behaviour, when the precise impacts of climate change are uncertain.
(2) Missing climate information, leading to market failure.
(3) Limited action arising from financial, institutional and regulatory barriers.
(4) Externalities, when the infrastructure owner is unaware of the costs incurred by
society whenever infrastructure failure arises from climate extremes.
10.3.3 Private Sector Led Adaptation
The private sector holds the leading role across the infrastructure sectors because its
activities range from investor, owner, operator, lender, insurer to being the major
user as well. From that point of view, it holds the leader’s role for tackling the risks
arising from climate change.
In so doing, the benefits that accrue to the private sector will include:
(1) improved security of supply
(2) reduced costs
(3) enhanced service delivery
(4) infrastructure with better resilience towards climate extremes.
The private sector can approach climate change infrastructure adaptation in at
least two ways:
(1) A risk-based approach. Thus port operators will design their ports after duly
considering climate parameters such as wind speeds, storminess, changing
temperatures, rainfall, etc, because competition demands it.
(2) A business-led approach. Again competition compels infrastructure operators to
adapt forcibly and visibly in order to outdo their peers in terms of climate
resilience. At the same time, they become more reliable and service resilient.
10.3.4 Investors
Investors in infrastructure range from, inter alia, banks, public and private pension
funds, insurance companies, to investment and development banks. These investors
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adaptation across different sectors.
(4) provide incentives for adaptation by establishing suitable economic regulatory
frameworks.
(5) address, where relevant, market failures and barriers to infrastructure adaptation
actions.
Without government intervention, there are a number of barriers which can often
inhibit economically efficient outcome. Such barriers include:
(1) Behaviour, when the precise impacts of climate change are uncertain.
(2) Missing climate information, leading to market failure.
(3) Limited action arising from financial, institutional and regulatory barriers.
(4) Externalities, when the infrastructure owner is unaware of the costs incurred by
society whenever infrastructure failure arises from climate extremes.
10.3.3 Private Sector Led Adaptation
The private sector holds the leading role across the infrastructure sectors because its
activities range from investor, owner, operator, lender, insurer to being the major
user as well. From that point of view, it holds the leader’s role for tackling the risks
arising from climate change.
In so doing, the benefits that accrue to the private sector will include:
(1) improved security of supply
(2) reduced costs
(3) enhanced service delivery
(4) infrastructure with better resilience towards climate extremes.
The private sector can approach climate change infrastructure adaptation in at
least two ways:
(1) A risk-based approach. Thus port operators will design their ports after duly
considering climate parameters such as wind speeds, storminess, changing
temperatures, rainfall, etc, because competition demands it.
(2) A business-led approach. Again competition compels infrastructure operators to
adapt forcibly and visibly in order to outdo their peers in terms of climate
resilience. At the same time, they become more reliable and service resilient.
10.3.4 Investors
Investors in infrastructure range from, inter alia, banks, public and private pension
funds, insurance companies, to investment and development banks. These investors
10.3 Preparing Infrastructure for Climate Change
291