University of Ghana http://ugspace.ug.edu.gh UNIVERSITY OF GHANA ADVANCING TOWARDS GREEN ECONOMY: AN ASSESSMENT OF PRIVATE SECTOR LED INITIATIVES IN CLIMATE CHANGE ADAPTATION IN GHANA BY JANE OSEI (10254844) THE THESIS IS SUBMITTED TO THE UNIVERSITY OF GHANA, LEGON IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF MPHIL IN PUBLIC ADMINISTRATION JULY, 2017 University of Ghana http://ugspace.ug.edu.gh DECLARATION I do hereby declare that, this work is the result of my own research and has not been presented by anyone for any academic award in this or any other University. All references in the work have been fully acknowledged. I bear sole responsibility for any shortcomings ………………………………… ………………………… JANE OSEI DATE (10254844) i University of Ghana http://ugspace.ug.edu.gh CERTIFICATION I hereby certify that this thesis was supervised in accordance with procedures laid down by the University of Ghana ……………………………… ………………………. DR. ALBERT AHENKAN DATE (SUPERVISOR) ii University of Ghana http://ugspace.ug.edu.gh DEDICATION This work is dedicated to God Almighty and my entire family. iii University of Ghana http://ugspace.ug.edu.gh ACKNOWLEDGEMENTS First of all, I would like to thank the Almighty God for the strength and guidance given me in the cause of my study. I would like to express my profound gratitude to my supervisor, Dr. Albert Ahenkan for his scholarly guidance, constructive comments and critical revision of the drafts which made it possible for me to complete this study. I also thank Mr. Seth TwumAkwaboah (Chief Executive Officer) and Mr. Stephen Owusu (Membership Development Manager) of the Association of Ghana Industries who did not hesitate to provide me with the necessary information needed for the study. I would also like to appreciate my friends, Joseph AntwiBoasiako and TemmyApemah for their positive influence during my study. I am very grateful to Mr. Richard Hannis Ansah for his love and support during my study. To my sisters and mum, Josephine Osei, Eunice Osei and Mrs. Beatrice Osei, I say thank you for the financial assistance and encouragement during difficult moments. My appreciation also goes to my seminar coordinators, Dr. Daniel Appiah and Dr. Francis Adzei for their constructive comments and suggestions. To all my colleagues of Public Administration and Health Service class of 2017, I really appreciate your useful comments and invaluable suggestions during our seminar sessions. I would also like to extend my sincere appreciation to all respondents who participated in this study. It wouldn’t have been a success without their corporation. To all who contributed in one way or the other, I say thank you and God bless you all. iv University of Ghana http://ugspace.ug.edu.gh Table of Contents DECLARATION .......................................................................................................................................... i CERTIFICATION ........................................................................................................................................ ii DEDICATION ........................................................................................................................................... iii ACKNOWLEDGEMENTS .......................................................................................................................... iv LIST OF FIGURES ................................................................................................................................... viii LIST OF TABLES ....................................................................................................................................... ix LIST OF ABBREVIATIONS ......................................................................................................................... x ABSTRACT .............................................................................................................................................. xii CHAPTER ONE ......................................................................................................................................... 1 1.1. Background ................................................................................................................................. 1 1.2. Definition of Green Economy........................................................................................................... 1 1.3. Definition of Climate change ........................................................................................................... 2 1.5. General objective ........................................................................................................................... 10 1.6. Specific objective ........................................................................................................................... 10 1.7. Research questions ........................................................................................................................ 10 1.8. Significance of the study ................................................................................................................ 11 1.9. Chapter disposition/organization .................................................................................................. 11 CHAPTER TWO ...................................................................................................................................... 13 LITERATURE REVIEW ............................................................................................................................. 13 2.1. The concept of green economy ................................................................................................. 13 2.2. The concept of climate change adaptation ............................................................................... 15 2.3. The need for private sector participation in climate change adaptation .................................. 18 2.4. Private sector adaptation challenges ......................................................................................... 21 2.5. Incentives for private sector participation ................................................................................. 23 2.6. Climate adaptation financing ..................................................................................................... 26 2.7. Private sector initiatives towards adaptation ............................................................................ 30 2.8. Theoretical framework .............................................................................................................. 32 2.9. Conceptual framework .............................................................................................................. 33 CHAPTER THREE .................................................................................................................................... 35 METHODOLOGY .................................................................................................................................... 35 3.1. Introduction ............................................................................................................................... 35 3.2. Research approach..................................................................................................................... 35 3.3. Research design ......................................................................................................................... 37 3.4. Scope of the study ..................................................................................................................... 38 v University of Ghana http://ugspace.ug.edu.gh 3.6. Sampling design and techniques................................................................................................ 39 3.7. Data collection instruments ....................................................................................................... 39 3.7.1. In-depth interviews ............................................................................................................. 40 3.7.2. Informal discussions ............................................................................................................ 40 3.7.3. Direct observation ............................................................................................................... 40 3.8. Sources of data collection .......................................................................................................... 41 3.9. Primary sources of data collection ............................................................................................. 41 3.10. Secondary sources of data ....................................................................................................... 41 3.11. Data management and analysis ............................................................................................... 42 3.12. Validity and reliability .............................................................................................................. 43 3.13. Ethical consideration ................................................................................................................ 43 3.14. Conclusion ................................................................................................................................ 43 3.15. Profile of Selected Companies ................................................................................................. 45 CHAPTER FOUR ..................................................................................................................................... 46 DATA PRESENTATION AND ANALYSIS OF FINDINGS ............................................................................. 46 4.1. Introduction ............................................................................................................................... 46 4.2. Various initiatives by the private sector towards climate change adaptation in Ghana ........... 46 4.2.1. Introduction ........................................................................................................................ 46 4.2.2. Environmental and Social risk policy .................................................................................. 47 4.2.3. Advocacy ............................................................................................................................. 49 4.2.4. Green initiatives .................................................................................................................. 50 4.2.5. Corporate social responsibility (CSR) .................................................................................. 53 4.2.6. Awards system .................................................................................................................... 55 4.2.7. Sustainability and Impact of Initiatives ............................................................................... 56 4.3. Various incentives available for the private sector initiatives towards climate change adaptation in Ghana. ........................................................................................................................ 57 4.3.1. The challenge that climate change risk/threat is real......................................................... 58 4.3.2. Corporate social responsibility (CSR) .................................................................................. 60 4.3.3. High cost of production due to climate change impacts .................................................... 60 4.3.4. Project viability ................................................................................................................... 61 4.3.5.Partnerships ......................................................................................................................... 62 4.3.6. Motivation to do something good ...................................................................................... 63 4.4. Challenges of private sector-led initiatives on climate change adaptation in Ghana ............... 64 4.4.1. Financial challenges ............................................................................................................ 64 4.4.2. Poor Knowledge base.......................................................................................................... 65 4.4.3. Absence of clear cut government policy ............................................................................. 66 vi University of Ghana http://ugspace.ug.edu.gh 4.4.4. Unattractive Government incentives .................................................................................. 69 4.4.5. Inadequate collaborative effort .......................................................................................... 70 4.4.6. Absence of Recognition and Standardization ..................................................................... 71 4.4.7. Government’s Perspective .................................................................................................. 72 4.4.8. Conclusion ........................................................................................................................... 74 CHAPTER FIVE ....................................................................................................................................... 78 SUMMARY, CONCLUSION AND RECOMMENDATIONS ......................................................................... 78 5.1. Introduction ............................................................................................................................... 78 5.2. Synopsis of research problem and objectives ........................................................................... 78 5.3. Summary of Research Findings .................................................................................................. 80 5.3.1. The various initiatives by the private sector towards climate change adaptation in Ghana ...................................................................................................................................................... 80 5.3.2. The incentives for the private sector initiatives towards climate change adaptation in Ghana. ........................................................................................................................................... 82 5.3.3. The challenges of private sector-led initiatives in climate change adaptation .................. 83 5.4. Conclusion .................................................................................................................................. 84 5.5. Recommendations ..................................................................................................................... 86 5.6. Areas for further studies ............................................................................................................ 88 REFERENCES .......................................................................................................................................... 90 APPENDIX ............................................................................................................................................ 104 INTERVIEW GUIDE ............................................................................................................................... 104 Field Photos of some projects by the private sector ...................................................................... 108 vii University of Ghana http://ugspace.ug.edu.gh LIST OF FIGURES Figure 1;Stakeholder model of corporation ............................................................................. 34 viii University of Ghana http://ugspace.ug.edu.gh LIST OF TABLES Table 1, Companies profile ...................................................................................................... 45 ix University of Ghana http://ugspace.ug.edu.gh LIST OF ABBREVIATIONS OECD Organisation for Economic Co-operation and Development GE Green Economy PAGE Partnership Agreement on Green Economy UNEP United Nation Environmental Program UNGC United Nation Global Compact IPCC Intergovernmental Panel on Climate Change PwC Price Waterhouse Coopers NGO Non-Governmental Organisation USD United States Dollars MESTI Ministry of Environment, Science, Technology and Innovation UNFCCC United Nation Framework Convention on Climate Change GGKP Green Growth Knowledge Platform PEI Poverty-Environment Initiative GGGI Global Green Growth Institute UN United Nations CDKN Climate and Development Knowledge Network IFC International Financial Corporation UAC United Africa Company LED Light-Emitting Diode EPA Environmental Protection Authority ERDF Électricité Réseau Distribution France NBS Network for Business Sustainability CCSP Climate Change Science Program CSR Corporate Social Responsibility x University of Ghana http://ugspace.ug.edu.gh NAPA National Adaptation Programme of Action GEF Green Economy Fund UNDP United Nation Development Programme NCCP National Climate Change Policy UNISDR United Nations International Strategy for Disaster Reduction CSIRO Commonwealth Scientific and Industrial Research Organisation UNEP United Nations Environment Programme, FI Finance Initiative AGI Association of Ghana Industries ECOWAS Economic Community of West African States ETI Ecobank Transnational Incorporated ROAE Return on Average Equity ROAA Return on Average Asset GGBL Guinness Ghana Breweries Limited SME Small and Medium Enterprises FAO Food and Agriculture Organization BOG Bank of Ghana UN United Nations xi University of Ghana http://ugspace.ug.edu.gh ABSTRACT The study examined the private sector led initiatives on climate change adaptation in Ghana. A paramount message of the study is that, community and social risks of climate change challenges are also business risks. The fact that government cannot fight climate change all by itself requires the involvement of other relevant stakeholders of which the private sector is a part. Many studies have focused their attention on private sector mitigation initiatives and opportunities in climate change hence it was imperative to focus the attention of the study on private sector participation in climate change adaptation. The objective of the study was to assess the various private sector initiatives on climate change adaptation and green economy and also to examine the various incentives and challenges faced by the private sector. An exploratory study design of qualitative research method was adopted for the study. Due to the objectivity of information required for the study, a purposive sampling technique was employed. Data for the study was collected through in-depth interviews with an unstructured interview guide. A total of twenty-four respondents were engaged in the study. The study found out that climate change adaptation initiatives are not well mainstreamed in the private sector. Findings indicated that most companies’ involvement in climate change activities was predominantly carried out through corporate social responsibility (CSR). The study further revealed that government incentives for private sector investment in climate change adaptation are not attractive. The study identified the challenges of private sector investment in climate change adaptation to include; financial challenges, poor knowledge base, weak collaborative effort, inadequate incentive, absence of clear-cut government policy and unsatisfactory recognition. Findings from this study advocates for a collaborative effort among stakeholders to address the immediate to long-term consequences of climate change through partnerships. The study further recommends enhancement of climate change education across all sectors xii University of Ghana http://ugspace.ug.edu.gh CHAPTER ONE INTRODUCTION 1.1.Background Increasingly, countries are shifting their attention to green economy as they face pressing economic and environmental challenges (OECD, 2012). Ghana is not an exception from the countries advancing towards a green economy. In developing countries such as Ghana, green economy is crucial for the achievement of sustainable growth. The green economy (GE) concept necessitates a shift in recent development conceptualization and is against the weak methods to development adopted in the past years (PAGE, 2015). It practically encompasses vagaries in production, consumption and lifestyle towards economic activities that use natural resources efficiently, improve and reserve environmental quality, and remove social disparities. It is therefore uncommon to have numerous working definitions of GE at the countrywide level, since it is the contexts of countries that shape the primacies and goals regarding the sectors to green. 1.2. Definition of Green Economy The concept GE finds space in Ghana as most of the country's development priorities that are in harmony with the concept's key objectives (PAGE, 2015). Green economies may perhaps be defined as economic systems taking into consideration a comprehensive remedial measure en route for fiscal, ecological and societal encounters that halt or reduce economic happenings and growth (Simons, 2010). Dominant to the green economy is the desire to improve people’s lives by contending climate change, energy insecurity and ecological variability. Following this definition, Ghana’s GE as a trail to sustainable development is dependent on the possibility of addressing the interdependence between comprehensive 1 University of Ghana http://ugspace.ug.edu.gh economic development, social protection and natural ecologies. United Nations Environmental Programme (UNEP) defines GE as an action that brings about an enhancement of human welfare and social justice, though meaningfully minimizing environmental risks and ecological sacrifices (UNEP, 2011). By this, GE can be described as one that is low carbon, resource efficient and socially inclusive. Ghana’s long-term vision - Ghana-Vision 2020 -is towards the achievement of a stable economy, middle-income country status and the standard of living with a level of development close to the current level in Singapore (Government of Ghana, 1995). For the purpose of this study, the operational definition of green economy is the preferment of actions that have a tendency to make the living conditions of people better through the judicious use of natural resources by way of reducing environmental dangers. 1.3. Definition of Climate change Climate Change as it were, is not a distant threat and its impact is threatening to global economic stability and security. Climate change concept has been defined by a group under the United Nations Global Compact (UNGC) as ‘initiatives and measures that decrease the susceptibility of natural and human systems against real or expected climate change effects (UNGC, 2011). There is no doubt that all countries across the globe are faced with the impacts of climate change, however communities in developing countries are most vulnerable. It is against this backdrop that the world’s powerful leaders suggest green economy as a solution to both the climate and the economic crises (Cock, 2014). The emergence of Climate change dates back to the 1990s and has since been identified with one of the world’s most threatening environment (IPCC, 2007). Climate change signals a ‘wake-up call’ warning to the effect that the predominant economic model is not sustainable. Climate change is the disparity in the earth weather condition for a period of time i.e. over 2 University of Ghana http://ugspace.ug.edu.gh 10years (Huber and Gulledge, 2011). Issues on climate change worldwide, are in two segments i.e. mitigation and adaptation. Initially, interventions focused on mitigation of climate change solicited technologically advanced countries to minimize their emissions (Seck et al. 2005). However, in recent times, most especially in developing countries, adaptation has been identified as pertinent and balancing response to mitigation (Gagnon- Lebrun & Agrawala, 2006). According to Burton et al. (2002), climate change adaptation helps to reduce considerably the negative impacts of climate change and, in some cases, improve the beneficiary impacts. Adaptation has been well-defined by the Intergovernmental Panel on Climate Change (IPCC) as modifications in environmental, societal or financial schemes in responding to real or anticipated climatic provocations and their implications (Smith et al. 2001).It comprises the adjustments of moderating harm from, or benefiting from, existing climate inconsistency as well as expected climate change. Climate change adaptation has been described by West and Gawith (2005) as the events which enable individuals to acclimatise to an extremely challenged weather and climatic disorderliness. The need for private sector participation in climate change adaptation in Ghana is very relevant. Actions taken by the private sector to help communities acclimatise to climate change can also be useful to promote a transition to a green economy. Consequently, governments have acknowledged it as one of the underlying themes of Rio+20. In as much as companies and businesses have responded to global and national pressures to control their CO2 emissions and invest in mitigation, they have rarely involved themselves in building climate-resilience communities. There is little motivation for investment in an area that is mainly seen as a civic obligation. However, some progress is been made. It is therefore imperative to investigate the private sector led initiatives towards the reduction of emissions and particularly measures to adjust to very severe climatic conditions. 3 University of Ghana http://ugspace.ug.edu.gh UNGC (2011) contends that the climate change adaptation priorities of affected societies are eventually the obligation of the government through the delivery of public finance as well as global, countrywide and indigenous initiatives. Nevertheless, private sector involvement in communities’ adjustment to climate change cannot be overstated. Organizations are beginning to realize the impacts of climate change on their businesses and attention has been shifted to the inferences of climate change on businesses. Businesses are now realising the nature and possible effects of these climate change threats and the inferences of community susceptibility on their own business activities (PWC, 2010).The private sector is also increasingly developing initiatives to help in the fight to end global poverty. This is evident as most private sector organizations are partnering with traditional development players such as National Aid Agencies and NGOs, leveraging supply chain to create economic opportunity for the world’s poorest people as well as the incorporation of corporate social activities into their business activities (Rio+20, 2012). It is important for the private sector to involve in activities which address the needs of vulnerable communities and as such its contributions towards the growth and execution of climate adaption plans, including sector‐specific know- how, technology, funding, competence and entrepreneurial essence cannot be exaggerated (UNGC, 2011). The challenges faced by societies in developing countries due to the impacts of climate change, can directly or indirectly affect businesses. These may include water shortage, deteriorating agricultural production and deprived health. Quite a lot of private businesses have focused their attention on climate change mitigation. This makes it evident that private sector adaptation to climate change has to be very much stimulated in the country. In as much most businesses are able to finance climate change mitigation, only a few small and medium enterprises have the capacity to do so. This is why the need for climate change adaptation is critical in Ghana. It is undoubtedly a fact that governments, communities and individuals 4 University of Ghana http://ugspace.ug.edu.gh have adapted actions to reduce the impacts of climate change in Ghana. Nevertheless, significant analyses of these actions are not really targeted at reducing the vulnerability of climate change-affected people (UNGC, 2010). Measures taken are relatively conservative, tend to be more expensive and therefore could not effectively address the impacts that are long-term anticipated. Terpstra et al. (2013) specifies that the World Bank’s approximation for emerging countries to deal with their present and upcoming climate adaptation requirements is 70 billion USD every year up to 2050. The World Bank estimation however, is that in 2011, only 4.4 billion USD in adaptation finance went to emerging countries (Terpstra et al. 2013). This therefore indicates a gap of about 65.6 billion USD per year between what developing countries require and what is provided. Grants from the international funding for climate change adaptation and mitigation were GHS40,226363 and GHS621,089,710 respectively between 2011 and 2014 (Climate change data hub, 2017), representing a lower grant for adaptation. Based on this, it is highly demanded that the private sector gets actively involved in climate change adaptation investments. Certainly, many researchers have conducted a study in the area of green economy and climate change adaptation in Ghana, however, little has been researched into the private sector led initiatives on green economy and climate change adaptation. For instance, in the works of Asante et al. (2012) and Bawakyillenuo et al. (2014) on climate change adaptation, their focus was on the agricultural sector. As indicated in the background of this research, the private sector has focused its attention on mitigation of climate change but for the purposes of this study, climate change adaptation and the private sector was the focus. This study assessed the private sector initiatives towards building the resilience of vulnerable communities in Ghana. The study also sought to identify the various strategies and initiatives used by the private sector in dealing with climate change adaptation in Ghana. The research 5 University of Ghana http://ugspace.ug.edu.gh further investigated the incentives available to the private sector for initiating climate change adaptation measures in Ghana. The private sector, by directing their investments into climate change adaption opportunities, can accelerate a green economy. The study also investigated challenges private sector encounter in implementing green and climate change adaptation initiatives and also the business case for making their businesses go green and become environmentally friendly. 1.4. Problem Statement Ghana’s economy faces enormous vulnerability due to severe impact of climate change on businesses and communities in general (PWC, 2010). The climate change challenges encountered by communities in developing nations of which Ghana is not an exception is more frequent and intense. Among the obstacles that seriously threaten businesses and communities are floods, heavy storms, water scarcity and declining agricultural productivity. The risks faced by businesses are equally faced by the communities in which they operate. Local and international firms are mostly reliant on resources, amenities and infrastructure from the societies in which they operate. They also rely on the host community for human resources such as suppliers, clients and personnel. Separating community well-being from companies’ viability and economic growth is difficult. Businesses who take steps to adapt to climate change with their focus on community expectations are likely to have a competitive advantage over their rival companies. Alternatively, businesses whose response to climate change are maladaptive and undermine communities’ efforts to adapt may encounter reputational and brand risks and sometimes may lose their capacity to function in certain places. Ghana as of today has shown impressive economic development and according to statistics, has currently reached a lower middle- income status (Ghana Statistical Service, 2010). However, Ghana is still susceptible to 6 University of Ghana http://ugspace.ug.edu.gh climate change as a majority of the society are dependent on small-scale agriculture and other vital economic resources that are endangered by climate change including coastal zone and water resources. Rainfall pattern in Ghana has lately become less predictable. It has also been observed that temperatures have risen across all ecological zones (MESTI, 2010). Most emerging states are susceptible to climate change because they mostly are reliant on natural resources for economic growth. In the report of OECD (2012), emphasis is made on how emerging nations are gradually being perpetrators of international economic growth emissions because of their rigorous use of natural resources and Ghana is no exception. UNGC, (2011) have indicated that 83 percent of 72 responding companies from both the advanced and emerging countries have confidence that the impact of climate change on their products or services is severe. Alternatively, a little higher proportion of companies (86 percent) believes that investment in adaptation measures poses a business opportunity for their company (UNGC, 2011). Agrawala et al. (2011) specified that companies’ awareness to climate risks is not doubtful, however, only a few companies evaluate forthcoming hazards and exploit adaptation options. The expectation from the private sector is high since they are at a greater risk. However, most companies implement only soft adaptation measures. In as much as the private sector has appreciable interest in climate change, a well-planned response by the private sector to climate change can facilitate the creation of robust and healthy communities for people and companies’ survival. This research therefore made it a priority to investigate Ghana’s private sector initiatives on green economy and climate change adaptation. As indicated earlier, most private sector businesses are focusing their attention on mitigation measures with only a little focus on climate change adaptation especially in emerging countries (Buchner et al. 2011; Kato et al. 2014; UNFCC, 2007). This presupposes that the private sector needs to be encouraged in climate change adaptation in Ghana. The adaptation 7 University of Ghana http://ugspace.ug.edu.gh accomplishment in most countries is reliant mainly on the private sector choices made (Acclimatise, 2009a; Long, Zadek and Wickerham, 2009; PwC, 2010). Although quite a number of businesses invest in climate change mitigation, only a few small and medium enterprises have the capacity to invest. It is thus imperious that the private sector is motivated to be actively involved in climate change adaptation. UNGC et al. (2011) maintains that it is the role of the public sector to ultimately provide for the climate change adaptation needs in susceptible communities through the public financial means and also through international, nation-wide and indigenous initiatives. Nevertheless, private sector role in communities’ adaption cannot be overstated. The engagement of private sector in climate change adaptation can help decrease the financial burden on government and ensure sustainable development. In Ghana, as part of our sustainable development goals, climate change is emphasised as one of the key areas to be looked at (Goal 13 of Sustainable Development Goals). The scarcity of resources in developing countries make it difficult for governments and local communities to build adequate adaptive capacity for managing climate change impacts on a sustainable basis. A report dubbed “Caring for Climate” in 2010 describes maladaptation as “an action or process that increases vulnerability to climate change-related hazards. Maladaptive actions and processes often include planned development policies and measures that deliver short- term gains or economic benefits but lead to exacerbated vulnerability in the medium to long- term” (Mimura, 2012). For instance, a company may increase the amount of its plantation to compensate for fallen agricultural harvests, and in the process, mislead smallholders to peripheral and degraded land hence putting livelihood at risk. This type of business adaptation practice actually reduces community resilience instead of improving it. It is imperative to assess the initiatives and investments of the private sector to ascertain the risk of maladaptation or otherwise. The private sector is also well informed that risk and 8 University of Ghana http://ugspace.ug.edu.gh opportunity tend to go hand in hand and investment in climate change adaptation will not be an exception. Similarly, the enthusiasm to deal with climate risks via specific technologies or infrastructural changes may sometimes result in neglect of environmental concerns like biodiversity (Næss et al. 2005; Eriksen & O’Brien, 2007; Eriksen & Lind, 2009). Thus, adaptation could have an inadvertent adverse effect on both people and the environment. Due to the fact that not every adaptation initiative to climate change is good, it is important to assess whether the initiatives by the private sector are good ones hence its sustainability (Eriksen & O’Brien, 2007). Terpstra et al. (2013) specifies that the World Bank’s approximation for emerging countries to deal with their present and upcoming climate adaptation requirements is 70 billion USD every year through 2050. The World Bank estimation however, is that in 2011, only 4.4 billion USD in adaptation finance went to developing countries (Terpstra et al. 2013). This therefore indicates a gap of about 65.6 billion USD per year between what developing countries require. Grants from the international funding for climate change adaptation and mitigation were GHS40,226363 and GHS621,089,710 respectively between 2011 and 2014 (Climate change data hub, 2017), representing a lower grant towards adaptation. Based on this, it is highly demanded that the private sector gets actively involved in climate change adaptation investments. Clearly, a lot of has been researched on green economy and climate change adaptation in Ghana. However, little research has been done on the various private sector led initiatives on green economy and climate change adaptation. For instance, in the works of Asante et al. (2012) and Bawakyillenuo et al. (2014) the focus was on agricultural sector. Again, actions taken by the private sector is geared towards mitigation of climate change hence the research focusing the attention of the research on climate change adaptation and the private sector. This study assessed the private sector initiatives towards building the resilience of vulnerable 9 University of Ghana http://ugspace.ug.edu.gh communities in Ghana. The study also sought to assess the strategies and initiatives used by the private sector in dealing with climate change adaptation in Ghana. The research further investigated the various incentives available to the private sector in initiating measures to adapt to climate change in Ghana. It was also important that the study investigated the various challenges by the private sector in implementing green and climate change adaptation initiatives and also the business case for making their businesses go green and become environmentally friendly. 1.5. General objective The general purpose of this research was to assess the private sector led initiative in climate change adaptation in advancing towards green economy. 1.6. Specific objective 1. To assess the initiatives by the private sector on climate change adaptation in Ghana. 2. To examine the various incentives for the private sector initiatives towards climate change adaptation in Ghana. 3. To examine the challenges of private sector led initiatives in climate change adaptation in Ghana. 1.7. Research questions 1. What are the private sector-led initiatives on climate change in Ghana? 2. What are the available incentives for private sector involvement in climate change adaptation? 3. What are the challenges of the private sector led initiatives on climate change adaptation in Ghana? 10 University of Ghana http://ugspace.ug.edu.gh 1.8. Significance of the study The study sought to throw more light on green economy with emphasis on private sector led initiatives on climate change adaptation. Actions taken by the private sector to assist communities adapt to climate change is beneficial to promote a transition to a green economy. The research serves as an important approach to mainstream climate change adaptation in the private sector. The study also serves as a reference in academia for future works. The study will also give the public and stakeholders, a better insight on climate change adaptation and green economy as a whole as well as educate the public on where to be involved in reducing the impact. Even though there is available literature on the area of study, only a few studies have focused on the private sector led initiatives on climate change adaptation and green economy. Some of the initiatives of the private sector, the challenges and available incentives will be identified by the study. The research will also supplement and complement the works of other researches that have been done. It will further serve and serve as a source of reference on climate change issues in Ghana. It will further create awareness for private sector participation in climate change adaptation. 1.9. Chapter disposition/organization  The study was organized in five chapters. Chapter one highlights the background of the study, problem definition, objectives of the study as well as research questions. It also covers the significance of the study.  Chapter two presents an extensive review of literature pertaining to private sector and climate change adaptation placing in perspective the private sector led initiatives to climate change adaptation.  Chapter three outlines a detailed methodology used for this research. 11 University of Ghana http://ugspace.ug.edu.gh  Chapter four presents the results and findings of the study as well as the analysis thereof.  Chapter five also presents the summary, conclusions and preferred recommendations to the study. 12 University of Ghana http://ugspace.ug.edu.gh CHAPTER TWO LITERATURE REVIEW 2.1. The concept of green economy The novel policy wave trending in both advanced and emerging countries is the progression towards green economies. This idea is an invention of the advanced countries and can be traced to the 2008 economic crises. Global leaders realised that neither the augmented greenhouse gases nor the global economic crises possibly will be overturned with the present manufacturing and production systems which had severe impact on the environment. In pursuit to re-invigorate economic growth, global leaders saw the need to find a solution to the economic crisis that served as drivers of the global green economy transition, including energy and climate change (Atkisson, 2012). Later in the year 2012, the outcome of the ‘Rio+20’ summit was a document titled “The Future We Want” and this recognised “green economy” as a prerequisite for the attainment of sustainable development and poverty eradication (Atkissin, 2012). A high and increasing number of countries have ever since been actively pursuing “green economy” pathway in collaboration with United Nations agencies and other relevant stakeholders including the Partnership for Action on Green Economy (PAGE), the Poverty-Environment Initiative (PEI), the Green Growth Knowledge Platform (GGKP) and the Global Green Growth Institute (GGGI) just to mention a few. Currently, a little over 65 countries have advanced towards green economy and related strategies (Cameron & Stuart, 2012). About 48 of these countries, including Ghana, have begun to develop National green economy plans as the centrepiece of these strategies. “Green economies” have been defined by Simons (2010), as economic scheme that considers a comprehensive remedial or corrective action incorporating economic, environmental (including ecological) and social challenges that halt or decrease economic activities and growth. The desire to improve the well-being of people through combating climate change, 13 University of Ghana http://ugspace.ug.edu.gh energy uncertainty and environmental variability is dominant to the “green economy” (Kaggwa et al. 2013). Over the past few years, the concept has gained significant international attention by way of addressing the 2008 fiscal crises and also doubled as one of the two themes for the 2012 UN conference on sustainable development (Rio+20 Conference). There has since been a swift expansion of literature such as novel publications on “green economy” from several important global organizations, state administration, think tanks, specialists, non-profit organisations and other investors. Irrespective of the growing global attention to “green economy”, consultations between affiliate nations on the notion that led to Rio+20 Conference was stimulating. This was somewhat as a result of the absence of a global consensus on the meaning or general values for “green economy”. In recent times, there has been the advent of interconnected but diverse vocabulary and concepts such as “green growth”, “low carbon development”, “sustainable economy”, “steady-state economy” etc. Green economy has no exact policy measures and how they can be factored into nation-wide urgencies and objectives concerning economic development and poverty alleviation is a major issue. Along with this is an apparent absence of knowledge or skill in scheming, executing and revising the costs and benefits of “green economy policies” (Allen & Clouth, 2012). In 2012, the “Rio+20 Conference” recognized “green economy” in the sustainable development and poverty alleviation framework, as a means for attaining social, economic and ecological sustainable development. A report by United Nations Environmental Programme (UNEP, 2011) indicates that there has been a completion of an examination of the probable “green economy” and the finalization of a draft “green economy” scoping study which focuses on agriculture, cocoa, energy and forestry. Provision is now being made for the emergence of an action plan towards the export of renewable energy in line with the transition to green economy with supports from PAGE (UNEP, 2015). 14 University of Ghana http://ugspace.ug.edu.gh The GE concept necessitates a shift in recent development conceptualization and contrasts the dangers posed by the unsustainable approaches to development during the past decades (PAGE, 2015). It practically involves changes in production, consumption and lifestyle toward economic activities that use natural resources efficiently, enhance and preserve environmental quality, and remove social inequalities. It is therefore very common to have numerous working definitions of GE at the national level, since the national contexts shape the priorities and goals regarding the sectors to green. Although Ghana has no current working definition of GE, the concept finds space in the country as most of Ghana's development priorities that are in harmony with the concept's key objectives (PAGE, 2015). United Nations Environment Programme (UNEP) has initiated a neo-liberal green economy which was mainly championed in “The Future we want” statement delivered by the heads of state subsequent to the Rio+20 conferences. Among the significant documents published lately to endorse this neo-liberal version are the UNEP’s preparatory report for the Rio+20 conference are: “Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication” (2011), an extensive document (630 pages), which has been labelled as ‘a radically conservative vision’ (Brockington, 2012). The three other leading documents are the UNEP’s “The Economics of Ecosystems and Biodiversity” (TEEB 2011), the 27 World Bank’s report on “Inclusive Green Growth: The Pathway to Sustainable Development” (2012) and the European Commission’s “Innovating for Sustainable Growth: A Bio economy for Europe” (2012). 2.2. The concept of climate change adaptation Climate change adaptation has been defined by a representative group of the United Nations Global Compact as ‘initiatives and actions to decrease the vulnerability of natural and human arrangements contrary to real or anticipated climate change consequences (UNGC et al. 2011). There is no doubt that all countries are faced with climate change impacts however, 15 University of Ghana http://ugspace.ug.edu.gh communities in developing countries are most vulnerable. The emergence of climate change dates back to the 1990s and has since been known as one of the world’s most threatening environment (IPCC, 2007). Adaptation on the other hand is defined by the “Intergovernmental Panel on Climate Change (IPCC)” as alterations in environmental, societal or financial systems in response to real or anticipated climatic stimuli and their effects (Smith et al. 2001). It comprises changes that will help restrain the damage or advantage from present climate inconsistency and expected climate change. There have been several grouping of “adaptation” choices (concise in Smit et al. 2000). These are built on things like the drive, method of application, or on the institutional method they take. For the purposes of this research, a better explanation of “adaptation” will focus on the initiatives, challenges and the incentives. West and Gawith (2005) describe climate change adaptation as those activities that allow people to adapt to an extremely challenged weather and climatic condition. The need for private sector involvement in climate change adaptation in Ghana is very relevant. Actions taken by the private sector to help communities acclimatise to climate change can also be useful to promote a transition to a “green economy”. Adaptation may comprise of either the building of adaptive capacity by way of cumulating the capability of persons, groups, or organisations to acclimatize to variations, or the implementation of adaptation decisions by converting that ability into action. Either of the scopes of adaptation can be applied for preventive purposes otherwise responsive to effects caused by altering climate. Adaptation is therefore seen as an unceasing process where actions, decisions and attitudes touches all facets of life and echoes prevailing societal standards and procedures. In Ghana, the two major plans used in response to climate change are the mitigation and adaptation policies. Whereas mitigation focuses on the root causes, by reducing greenhouse gas emissions, adaptation focuses on lowering the dangers posed by the implications of climatic change (The Guardian news, 2012). There is the need to adopt both 16 University of Ghana http://ugspace.ug.edu.gh methods in dealing with climate change issues. Even though there is the possibility of diminishing emissions in the next decade, the need for adaptation is very important to address international variations that have been set in motion before now. People have developed strategies, cultures, practices and livelihood in order to adapt to their environment throughout history. Such practices normally are suitable for their local conditions. However, the increasingly threatening climate change predicts that existing societies are likely to be affected by climatic swings in temperature, storm frequency, flooding and other issues which their earlier knowledge may not have equipped them for. Planned actions to adapt can be put in place as well as measures to spontaneously adapt to local pressures that may occur. Such measures may comprise extensive infrastructure vagaries in the likes of structuring defences to guard against “sea-level rise” or refining the quality of road surfaces to endure hotter temperatures in addition to behavioural shifts such as individuals using less water, farmers planting diverse crops and more households and businesses buying flood insurance. The IPCC has identified three factors as the determinants of climate change vulnerability. These factors are: “exposure to hazards (such as reduced rainfall)”, “sensitivity to those hazards (such as an economy dominated by rain-fed agriculture)”, and “the capacity to adapt to those hazards (for example, whether farmers have the money or skills to grow more drought-resistant crops)”. In order to reduce such vulnerabilities, adaptation measures such as dropping compassion or building adaptive capacity and also permitting inhabitants to gain from prospects of climatic changes can be used. Cultivating fresh yields in zones that were hitherto inappropriate could be adopted too. Adaptation to climate has currently developed into a more evident and persistent issue. Irrespective of the reductions in greenhouse gas emissions as a result of current inactiveness of oceans and the prolonged atmospheric era of carbon dioxide and other “greenhouse gases”, it is acknowledged that climate scheme is likely to experience some variations in the 17 University of Ghana http://ugspace.ug.edu.gh approaching century (Matthews and Caldeira, 2008). According to Parry et al. (2009) and Schellnhuber (2009), rarely will an emission reduction decline at the proportion and extent essential to inhibit climate change that is hazardous to many. Adaptation is consequently recognized as an important tool for reducing dangerous climate change vulnerability. Although, there is the possibility of adaptation reducing the adverse impact of climate change, attention given to its practices is very slight. Sometimes, what appears to be an effective approach to climate change might dent the social, financial and ecological purposes. Initiatives that are successful in one perspective may concurrently reduce the living conditions as well as the resources of others. 2.3. The need for private sector participation in climate change adaptation Despite the fact that, the success of adaptation in many countries is dependent profoundly on the choices made within the private sector, attention paid to the private sector involvement in adaptation is very little. According to the CDKN (2016), leaving out the private sector in the management of climate change can hinder a transformational change. It is thus imperative to appreciate how the private sector is reacting to the fears and prospects emanating from climate change. This can be helpful towards the development of policy agendas that are constructive for adaptation and also help in identifying the current barriers and share lessons learnt. The works on private sector and climate change are comparatively new and until now, there has been inadequate scrutiny of real adaptation. Studies have largely remained keen on establishing the argument and justifying private sector participation in adaptation (Acclimatise, 2009; Pew Centre on Global Climate Change, 2008; PwC, 2010). Only a handful early movers have begun divisional scrutinises delineating corporate commendations for adaptation. Notable amongst these works, have shifted their attention to cross-sectorial scrutinise ranking the dangers of climate change by business sector (KPMG, 2008; NBS, 2009). It has been affirmed by David Suzuki Foundation (2009) and Acclimatise (2009, 18 University of Ghana http://ugspace.ug.edu.gh 2010) that others have measured precise industries such as, the mining industry, the oil and gas sector, and power efficacies ports as well as financial institutions (IFC, 2010, 2011). The energy creation and transmission divisions in the United States (CCSP, 2007) and Australia (Parsons Brinckerhoff, 2009), and the construction and water sector in the UK (Berkhout, Hertin and Arnell, 2004) cannot be left out. In an attempt to measure these dangers, research have also considered (IFC, 2010) businesses’ attitude towards adaptation (Ipsos MORI, 2010) and general climate change tendencies relative to private sector adaptation, such as water scarcity (Ceres, 2009). According to Agrawala et al. (2011), most private sector companies in Ghana are not interested in implementing hard adaptation measures like infrastructural investment. Companies would rather implement mitigation measures than adaptation measures as they argue that it is only companies who depend mainly on long-term fixed assets that may be better of financing adaptation measures. Per their findings, such companies are more likely to pass on adaptation cost to their customers than the other companies. Most businesses do not tag their activities as adaptation, rather their movements are intended to advance business pliability, or to manage ecological or climate perils which may not be considered as adaptation (Agrawala et al. 2011). Also, since the benefit of adaptation is frequently local and private and typically only profits the business itself, adaptation does not fall under normal Corporate Social Responsibility (CSR) stories. This makes it tougher for businesses to efficiently communicate their ways of adapting to climate change. In a report by PWC (2010), there is a distinction amid direct and indirect climate change dangers to the private sector. It is direct when there is an uninterrupted exposure of central business activities to climate change impact and otherwise. A typical example is an extreme weather condition which can progressively result in business disruption and impairment to physical assets. The impact on staff health, crop and livestock productivity as a result of 19 University of Ghana http://ugspace.ug.edu.gh change in temperature cannot be overstated. Scarcity of water may also pose some challenges to industrial cooling, river, transport, and hydro-electricity. PWC (2010) have noted sectors that are likely to be predominantly affected to include agriculture, infrastructure operators and tourism. A significant share of the wider “green economy” pattern is the private sector reserves that supports helpless individuals and societies to adapt to climate change effects, most importantly, those that ease better usage of progressively scarce resources, or to reintroduce and re-establish them. The complex relations amid humanoid and ecological welfare, financial and social firmness, and the lasting success of the private sector provide the basis for green economic development. It will be in the interest of businesses to initiate adaptation measures that will contribute towards sustainable development and also safeguard their adaptation choices in order not to impede communities’ long-term pliability. Industries therefore may have to organise their resources, inventive capacity and proficiency to develop effective adaptation resolutions, and by this have the duty to review their current models and risk management structures. Also, it is important for companies to work in direct partnership with nation-wide, regional and local-level investors to be sure that these adaptation resolutions address urgent needs. The involvement of the private sector cannot be supplementary for disparagingly desirable public investment and policies, but it can be an essential part of an all-inclusive approach to addressing climate impacts. Private sector role in adaptation will be substantial especially in the provision of both essential services in order to better appreciate climate hazards and the technologies and business models that will make present and upcoming investments climate resilient. Fruitful involvement of private sector adaptation will facilitate bigger and additional recurrent investments, which possibly will minimize the expenses, fast-track the reproduction 20 University of Ghana http://ugspace.ug.edu.gh of climate-resilient technologies and methods in fundamental development areas, especially in developing countries. Accordingly, climate change may present an opportunity that will attract private sector stakeholders in countries with small economies whose interest would not be typically fascinated by these kinds of interventions. The private sector ought to be a dynamic partner and, in several occurrences, the foremost basis of efforts to adapt to climate change. Many activities are pertinent for the private sector to completely engage in adaptation and effectively respond to climate change in emerging countries. Miller (2014) has emphatically called for the participation of private sector in climate change adaptation. According to him, the need to progress in the fight against climate change and its effects must include private sector especially assisting in building a resilient nation and adapt to climate change, what government needs to do and who should pay what has been the focus. However, engaging the private sector has its own vital reasons. Miller (2014) further indicates that, private sector involvement in climate change adaptation can help “mobilize financial resources and technical capabilities, leverage the efforts of governments, engage civil society and community efforts, and develop innovative climate services and adaptation technologies.”It is essential for the private sector to participate in adaptation because, the financial bearings in relation to downpours, famines, storms, high temperatures, and other weather-related disasters have increased progressively as a result of climate change (Biagni and Miller, 2013). In addition, the German Development Institute (2016) indicates that private sector investment in adaptation is needed because the cost of adaptation is too high to be met by only government. 2.4. Private sector adaptation challenges Private sector adaptation has encountered several challenges. Many enterprises have inadequate knowledge of the anticipated impact particularly in emerging countries where information might not exist. The UNGC (2011) have identified that challenges faced by 21 University of Ghana http://ugspace.ug.edu.gh companies for integrating scientific data is typically covered by a huge geographic zone and lasting tendencies and information relevant to cite specific decision-making. The multifaceted nature of climate change however, indicates that the anticipated effects are themselves liable to modification. Adding to this, in various emerging countries, adaptation markets and tragedy risk consultancy facilities as well as expert knowledge and skill level are gradually evolving. Mostly those who are less likely to have access to some of these specialists’ advice are the small and medium enterprises (SMEs) with reduced budget and enterprises in isolated rural areas. Another challenge identified by the PWC (2010) is the lack of clear government policy towards climate change adaptation in Ghana which has led many businesses to choose to “wait and see”. UNGC (2011) has further added that the reservations about climate impacts on businesses are likely to pose difficulty in securing financing for adaptation investments especially for SMEs within the private sector. One major challenge government face is how to design policies that effectively influence private investment and expertise to carry out operational modalities and mechanisms to address green and inclusive growth and improvement at the scale and pace needed (Rio+20 Conference, 2012). One other challenge that is identified by PWC (2010) is the lack of appropriate incentives for the private sector. The benefits of many adaptation measures may be realised later even though investment is required now. However, businesses are focused on short-term costs and profits. According to the UNEP (2016), investments in adaptation have a cost-saving nature hence may not be attractive enough unlike revenue generating investments. In the view of Fry (2013), it is a challenge for governments to provide incentives for private sector actors to mainstream climate change adaptation into their normal business activities. 22 University of Ghana http://ugspace.ug.edu.gh According to Climate Investment Funds (2016), financial constraints can also be an impediment to private sector adaptation. The investment in adaptation can be very high. A typical example is the evaluation of climate risks which can increase the average cost of an environmental and impact statement by 25 percent. As a matter of fact, operational constraints and the cost of doing business can be as a result of other generic investments including political, economic and institutional weaknesses that are likely to limit private sector adaptation investment (Climate Investment Funds, 2016). CDKN (2016) have also identified challenges such as lack of capacity, awareness, knowledge and skills within the private sector. It further concludes that a business can only adapt when it understands the threat climate change poses to their businesses. The World Resource Institute (2013) also identified financial and technical challenges, lack of better and more actionable information on climate change and its anticipated impact. Further to the above-mentioned challenges, UNEP (2016) has identified budget constraint and inaccessibility to credit, knowledge and information gaps, improper institutional arrangement, negative impact of policy and regulations on business drive for investing in adaption, limited access to advanced technologies, structures as well as tools and lastly, reaction of stakeholders to climate change with respect to their social and cultural processes. 2.5. Incentives for private sector participation Adaptation incentives according to Flatt & Huang, (2012) can be categorised into two i.e. in the case of government, legislations, incentives, regulations and policies; the other aspect is by forces like recognition by private sector response to market signals, public opinion, utilities, and commodities prices. Private sector adaptation may also be lacking proper motivations. 23 University of Ghana http://ugspace.ug.edu.gh PWC (2010) asserts that several adaptation events necessitate investment with benefits to be realised later. Nevertheless, the priorities of many businesses are subjugated by short-term costs and cash flows. The work of the UNGC (2011) cannot be overlooked as it emphasises the fact that, considerable number of adaptation investment has a public good component in the likes of enhanced deluge defences, disheartening investment by solo companies, incapable of accumulating the full benefits. Most businesses are likewise inexperienced with regards to enumerating how bionetworks contribute to their businesses and might as well underestimate the natural resources in addition the ecosystems they hinge on and under-invest in adaptive actions. There are a number of complications associated with the strategy and regulatory environment that companies function in. Again, PWC (2010) have maintained the opinion that, many industries could hold back rather than anticipate pronouncements on climate change adaptation due to the likelihood of the absence of clear policy direction from government. In line with this, CDKN (2016) have suggested that, government should engage with businesses by sending clear policy signals that the private sector is critical when it comes to the achievement of climate compatible growth. Meanwhile, the “National Adaptation Programme of Actions (NAPAs)” is frequently established entirely by government with only slight private sector participation regardless of private sector activities being limited in specific sectors. The Green Economy Fund (2012) records for example that weather and storm warnings in most countries have over the years remained public roles managed by pertinent “hydro-meteorological” agencies and that substitute private sector agencies have emerged lately. UNGC (2011) also notes the issue regarding plans that do not properly apportion natural resources such as water to safeguard acceptable access for all users. They further propose that the danger and doubt about climate impacts might be a hindrance to companies’ 24 University of Ghana http://ugspace.ug.edu.gh ability to acquire funding for adaptation investments with lengthier return horizon or dependent on proactive risk management plans. This is particularly identified with SMEs who are before now faced with inadequate access to credit. Reservations about climate impacts could hinder businesses’ investment in adaptation. Firms’ investment choices are built on valuations of cost vs. benefit hence might be unwilling to oblige to substantial and sincere investments given reservations about the extent of the end benefit. Based on this literature, there is therefore less incentive for businesses to capitalise on adaptation when the “climate change” impacts it defends are uncertain or when there is a huge ambiguity in the probable brutality of impacts. This issue is pertinent across the whole private sector but is particularly obvious when impacts are anticipated only to happen in the long-term or when adaptation necessitates important investments. This may be an explanation to the rationale behind the many instances of adaptation measures executed by businesses alarmed with happenings concerning low uncertainty climate influences such as rising temperatures and growing rate of heat waves. The involvement of the private sector in identifying and adapting to climate change in developing countries is very important for several reasons. These may include the mobilization of monetary resources and technical capacity, influencing the hard work of governments, engaging civil society and community, private sector engagement in adaptation to climate change in developing countries efforts and develop innovative climate services and adaptation technologies (Miller, 2014). Many decisions crucial to adaptation is controlled by private entities. A typical example is “the location and design of roads, buildings and other infrastructural investment, which are often minimally regulated by codes”; “developing more drought-resistant seeds”; water administration set-up and technologies; financial commitment, much of which will inevitably have to be generated from private sources; the 25 University of Ghana http://ugspace.ug.edu.gh development of adaptive technologies in all development sectors; and the expansion and propagation of adaptation products and services. The desire for private sector to invest is induced by regulatory wheels, financial earnings and investment risks. There should be room for private sector access to reliable and strong channel of bankable and highly excellent investment. PWC (2010) states however that, it is a major constraint for developing resilient initiatives where constraints of invention and transition are made part of the investment blockades that hinders the progress of many emerging markets. Businesses are most likely to react to mitigating their own perils and therefore hardly will they engage in issues that does not affect their direct operations. In order for businesses to act within their external environments, they require proper evidence and gratitude of the business situation intended for investment. KPMG (2012) has also identified some drivers for private sector adaptation in climate change. These include; “business opportunity, wider social advantage, reputation, reduced operational costs, reduced disruption to production/service, improved ability to do business and changing demands for goods/services”. 2.6. Climate adaptation financing As a way of recognizing the irreparable variations to the climate change system, adaptation has been focused on how to address the damages instigated by climate change. According to the IPCC (2007), climate susceptibilities have not been fairly distributed as countries who have contributed less to greenhouse emissions are the most vulnerable. The probable measure of climate change and the likely adaptation costs have become extra ostensible (Oxfam International, 2007; UNDP, 2007; Behrens, 2008). The burden of adaptation cost sharing has become a crucial global policy query (Baer et al. 2008) regardless of the fact that it has established inadequate attention compared to mitigation (Paavola and Adger, 2006; Klinsky 26 University of Ghana http://ugspace.ug.edu.gh and Dowlatabadi, 2009). This is particularly critical because the greatest effects for the imminent decade are the consequence of previous emissions produced mainly by advanced countries (UNDP, 2007). In a broader perspective, while mitigation effort (emissions reductions) is rigorous in more affluent countries, adaptation efforts are likely to be desirable in both developed and developing countries. Nevertheless, these emerging nations have rare resources which may be helpful to withstand their nations’ climate change effect or even to lessen such impacts through adaptation measures. A report by Terpstra et al. (2013) on the topic “Adapting to Climate Change: Private Sector’s Role” specifies that, the world bank’s estimation for emerging countries to meet their current and forthcoming climate adaptation needs each year through 2050 is 70 billion USD respectively. In 2011, the National Climate Change Policy Initiative’s estimation showed that only 4.4 billion USD went to emerging countries in adaptation finance (Terpstra et al. 2013). This indicates a gap of about USD 65.6 billion each year between what advanced countries are giving and what is required by emerging countries. The private sector is by this notion needed to actively participate in climate change adaptation activities. The “National Climate Change Policy (NCCP)” which was openly launched by the then President of Ghana, in July 2014 to give policy direction to the government’s response on climate change is to be implemented at a cost. The NCCP has a vision of ensuring a climate- resilient and climate-compatible economy at the same time attaining sustainable development through equitable low-carbon economic growth. The NCCP and its supporting master plan make extra demands on public spending as this is a new area of public policy. The general execution of the NCCP is projected to cost approximately USD 9.3 billion (GH₵ 35 billion) over the period 2014-2020 (Asante et al. 2015). The NCCP has identified four focal areas 27 University of Ghana http://ugspace.ug.edu.gh within the social growing policy area, namely human health, access to water and sanitation, gender issues, and migration (Tumushabe et al. 2016). These received the maximum projected distribution of funds in the NCCP (at 47 percent of total funding). Between 2011 and 2014, fourteen MDAs were identified as having climate change relevant spending in the national budget. Budget allocations are however, very minor, with a total budgeted expenditure of GH₵ 637 million (approximately USD 210 million) in 2014 (Asante et al. 2015). Climate change relevant expenditure is approximately two percent of government expenditure and 0.5 percent of GDP. This level of budget distribution signifies a very little base upon which the NCCP has to build over the next five years to achieve its policy objectives. By comparing the planned annual budget under the NCCP Master Plan of GH₵ 4,127 million with the 2014 budget figure of GH₵ 637 million, reveals a six-fold increase in the figures (Adjei et al. 2013). A report “Investment and financial flows to address climate change: an update” by the UNFCCC (2008) noted that, “the private sector, too, already invests significantly in many vulnerable sectors. Ensuring that private-sector investments help to reduce vulnerability and exposure to climate risks and contribute to effective adaptation can channel a large source of funding towards climate-resilient outcomes. In addition, the private sector can be engaged in developing and implementing financial risk management mechanisms, including insurance, that encourage more adaptive behaviour.” However, the estimates for the scale of financing needed for climate change adaptation is enormous and undoubtedly underscores the necessity of leveraging private sector resources. The UNFCCC secretariat have estimated that the extra investment and financial flows needed worldwide is USD 60–182 billion in 2030 (UNFCCC, 2007) some USD 28–67 billion of which would be needed in developing countries. The foremost uncertainty about these estimates is in the cost of adapting infrastructure, which might entail anything between USD 8–130 billion in 2030, 28 University of Ghana http://ugspace.ug.edu.gh one-third of which would be for emerging countries. It was also projected by the UNFCCC secretariat that an extra USD 52–62 billion would be needed for agriculture, water, health, ecosystem protection and coastal zone protection, most of which would be used in developing countries (UNFCCC, 2007). The World Bank (2006) resolved that the incremental costs of adapting to the projected impacts of climate change in developing countries are likely to be in the order of USD 9–41 billion per year, while Oxfam International (2007) projected this number to be over USD 50 billion per year. UNDP made the utmost negative approximation so far in suggesting that by 2015 the financing requirements for adaptation in emerging countries could amount to USD 86–109 billion per year (Watkins, 2007). The “Stern Report” also notes that at higher temperatures, the costs of adaptation will rise sharply and the residual damages remain large. The additional costs of making new infrastructure and buildings resilient to climate change in OECD countries could be $15 – 150 billion each year (0.05 – 0.5% of GDP). The understanding and adoption of good adaptation practices can be proven and nurtured by climate finance. In some sectors, most especially the agriculture sector, climate change resilience can be a source of competitive advantage. A UN report has described this insight as a way that can generate new market opportunities in emerging economies (UNISDR, 2013). The moment approximations of the financial needs for adapting to climate change increases, the essence of identifying extra sources of funding also points to the much larger financial resources under private control. There are numerous reasons to emphasise on private sector financing of adaptation. One is the need to recognize supplementary sources of funds to complement and improve the effectiveness of donor funding. The UNFCCC Green Climate Fund obligates donor nations to assemble $100 billion a year in “new and additional” resources for climate change mitigation and adaptation by 2020 from a combination of public and private sources (UNFCCC, 2011). Gaining this sum from traditional commitments of 29 University of Ghana http://ugspace.ug.edu.gh bilateral and multilateral aid is very unlikely and other sources will need to be found (OECD, 2012). It is evident that the present sources of funding available to climate change adaptation are far below the expected. It is thus imperative that a novel and supplementary funds are provided to support adaptation needs (UNDP, 2010).There has been a growing concern for private sector engagement in climate change adaptation. The private sector knowingly is the main pivot for economic growth and its exposure to climate risk through its supply chains and assets cannot be disregarded. In as much as it should protect itself, it must also bind new business openings emanating from the necessitating communities’ adaptation. It has also been revealed that investing in adaptation otherwise preparedness towards climate change signifies value for money and better living conditions for development rather than a post-catastrophe humanitarian response. The estimated cost in the “Adaptation Finance Gap” report by UNEP (2016) is that, the annual cost for climate change adaptation is USD 300 billion by 2030. This is a serious case for the private sector to be involved as the public sector cannot generate it all. 2.7. Private sector initiatives towards adaptation A report by Agrawala et al. (2011) indicates that whereas most businesses recognise existing and forthcoming dangers that climate change are likely to pose on their operations, much less engross in other activities relating to awareness. Some businesses make use of their websites in exhibiting the level of their awareness of climate change and engross themselves in several awareness-raising aerobics through the illustration of climate change matters, highlighting their initiatives to address them, and in some instances publicising the outcomes of their awareness-raising crusades. Per the report, a chemical and medicinal company called Bayer has established initiatives to increase consciousness of climate change impacts amongst children. This was done through the publication of a book written for children titled “What’s up with the Earth: The mystery of early spring”. Other initiatives taken by this company is 30 University of Ghana http://ugspace.ug.edu.gh the support in educating climate change affected regions (for instance, they assist the CSIRO Carbon kids educational programme in Australia); and they co-organise the “International Children’s Painting Competition on the Environment” with the UNEP (Bayer, 2010). Initiatives by the private sector to raise climate awareness may also be drawn from the effort and support from partnership and global organisations. For instance, the working group of the UNEP with its finance initiative on climate change has synchronized several monetary groups to endorse their involvement in adaptation to climate change. For example, as part of their adaptation plans, the German Sustainable Business Institute and UNEP finance initiative in their quest to understand the climate information requirements of the financial sector surveyed sixty financial institutions about their information needs (UNEP FI, 2011). Some companies also focus on firming up community livelihoods in the African context (Fujikura and Kawanishi, 2011). Others engage in corporate social responsibilities (CSR) and tag them as adaptation initiatives. Levy (2015) has however, concluded that CSR is not a likely remedy to climate change. A little of the present resilience initiatives are premeditated for private sector. Government with the support of a number of programmes, in developing their policy and regulatory frameworks for resilience often does not engage the private sector and there is also the absence of a serious attention to creating an enabling environment for business to invest and thrive. Generally, the private sector does not engage in concrete adaptation actions due to the absence of public interventions (PWC, 2013). Even though there is evidence for which government interventions work best in supporting private sector involvement and investments, they are very limited and a few publicly funded initiatives exists with private sector adaptation as a target objective. It is critical because many adaptation responses will essentially require the private sector in order to reach scale (PWC, 2013). As part of the private sector initiatives of the Nairobi work programme, the website of the UNFCCC keeps a record of adaptation cases. These cases are a reflection of climate change adaptation 31 University of Ghana http://ugspace.ug.edu.gh activities assumed by private sector companies across a variety of sectors and regions (KPMG, 2012). As at 2012, there were only fifteen initiatives undertaken across Africa and Middle East (Maplecroft, 2012). Most of the initiatives too were identified with consulting organisations and partnerships with NGOs with focus on water and agriculture. Some of the initiatives included; “Constructing cyclone-proof schools; Water efficient technologies used in coal-fired power stations (dry-cooling); Flood catastrophe bonds and micro-insurance products to reduce flood risk; Construction of sustainable infrastructure; Climate project screening tools to identify risks in climate-sensitive sectors; Dissemination of weather information and early warning systems to small-scale farmers, fishermen and communities; Insurance, micro-credit and savings schemes to assist small-scale farmers; Spatial development planning in areas surrounding company operation to reduce prevalence of malaria; Improved agricultural and water management practices in food and beverage company supply chain” (KPMG, 2012). 2.8. Theoretical framework This research is located within the framework of the stakeholder theory and the rational actor model. According to Mitchell et al. (1997) and Grimble (1998), stakeholders are the actors who have a stake in relation to a specific issue and in this context, climate change adaptation because they may either influence or be affected by it (Freeman, 1984). There are two perspectives of stakeholders. i.e. mandatory and permissive stakeholders. Mandatory stakeholders are those directed by authority or law to be stakeholders in a policy or governmental actions i.e. the public sector in the case of climate adaptation. Permissive stakeholders are in two forms namely interest wielders and interest advocates. Interest wielders are those who are directly affected by a policy and are permitted to participate in policy process whereas interest advocates are those stakeholders who are purported to fight for the interest wielders who cannot fight for themselves (Ahenkan et al. 2013). 32 University of Ghana http://ugspace.ug.edu.gh In this case, the private sector in climate change adaptation are permissive stakeholders who are not mandated but can be involved in one way or the other as the effects may directly or indirectly affect their business. This research adopts the permissive framework as a yardstick for private sector participation in adaptation. To have an effective climate change adaptation, there is the need for stakeholder participation (Bohensky et al. 2016) of which the private sector is part. Private sector has its businesses to uphold when the issue of climate change comes to bear just as other stakeholders do. In the quest to address the problem of climate change, all stakeholders must be involved. However, the private sector is seen as a rational actor under the rational actor model which was proposed by neo-realists under the rationality theory (Aniagyei, 2015). In view of this, the conduct of the private sector in relation to climate change adaptation is explained by the rationality theory as carefully considering their interests by doing a cost benefit analysis before undertaking any adaptive action. 2.9. Conceptual framework In order to better explain the stakeholder theory to climate change adaptation, a conceptual framework is designed. This framework highlights a number of stakeholders, both mandatory and permissive forming allegiance to respond to climate through adaptation means. The framework depicts private sector as a permissive stakeholder and affirms a collaborative stakeholder role towards building climate change adaptation. It reaffirms the stakeholder model of corporation where every stakeholder is brought on board to help overcome the pressures of climate change through adaptation. The conceptual framework; stakeholder model of corporation presented in figure 1.0 is intended to address the issue of stakeholder involvement in climate change adaptation. First and foremost, emphasis is placed on a collaborative representation for effective climate 33 University of Ghana http://ugspace.ug.edu.gh change adaptation. Even though government is seen as a mandatory authority for climate change adaptation, other permissive stakeholders like the private sector cannot be left out. In order to fight against the most threatening issue in recent times (climate change), it is important that all stakeholders get involved especially in adaptation as it has come to complement mitigation. This has been explained as complementary to mitigation due to its relevance to development. Secondly, the model also shows that, regardless of government being a mandatory authority, it cannot do it all. The support and synergy of the other stakeholders of which the private sector is key can make an effective climate change adaptation in Ghana. The stakeholder model of corporation below represents this idea (Freeman et al, 2010) Private sector (Permissive stakeholder) Other stakeholders (Development Effective Climate Government partners, citizens, (Mandatory etc.) Permissive change adaptation Stakeholder) stakeholder Civil societies (Permissive stakeholder) Figure 1; Stakeholder model of corporation. Source: Researchers conceptualization (2017) 34 University of Ghana http://ugspace.ug.edu.gh CHAPTER THREE METHODOLOGY 3.1. Introduction A research methodology is dictated by the nature of data and the problem of the study (Leedy, 1993). The section outlines the method used for this study. It discusses the research approach, research design, population and sample size as well as the sampling technique used for the research. It further discusses the sources of data used, procedure for data collection and the data management and analysis tools. 3.2. Research approach There are three types of research approaches i.e. qualitative, quantitative and mixed method. However, the study adopted the qualitative approach on the basis that this approach stresses the quality rather than quantity. It also gives a social representation rather than a mere statistical data. This approach helps the researcher to provide detailed assessment of people’s perception, gestures, emotions, beliefs, experiences and behaviors (Branen, 1992; Cresswell, 2013; Cresswell, 2014). For instance, Cresswell (2014:34) posits that “…qualitative approach uses strategies of inquiry such as narratives, phenomenologies, ethnographies, grounded theory studies, or case studies”. The adoption of qualitative method helped in providing an understanding of green economy and expressing the underlying initiatives, challenges and incentives for climate change adaptation. It also provided an insight into the problem with private sector and climate change adaptation and also helped to develop ideas for potential qualitative research. A one on one interview was conducted during the collection of primary data. This helped to understand better, respondents’ ideas and drew meanings from their gestures. This was 35 University of Ghana http://ugspace.ug.edu.gh supported by the use of an interview guide which helped in asking specific questions relating to the objectives of the study. Informal discussions were also held with identified private sector institutions. The language of qualitative research tends to revolve around case studies and social contexts instead of variables and hypothesis as the case in quantitative. As noted by (Holloway, 1997:80), “qualitative research involves the interpretation of data whereby the researcher analyses cases in their social and cultural context over a specific period of time”. It may also develop theories that lay emphasis on tracing process and sequence of events in specific settings (Grix, 2004). It also provides an approach whereby interaction with respondents will generate a valid information thereby gathering data that is ‘rich’ and ‘deep’ (Miller and Brewer, 2003:238). In view of the above, this research collected data that is rich and deep by forwarding interview guide in the form of questionnaire to respondents who could not make time for one on one interview. Patton (2002) has described the paradigm of qualitative approach as one that provides an important opportunity where expectations, disciplines and interpretation of activities by actors with diverse roles in specific context are required. This research considered diverse sectors representing the private sector and information from people occupying different roles particularly top managers. It has further been asserted by Newman (2007) that, a qualitative research includes using soft data that presents itself in the form of impressions, symbols and questions of participants/respondents. This research presented an opportunity for the use of such data through the making of relevant interpretations and drawing pertinent meanings from gestures during interaction with respondents from different industries which also facilitated the use of qualitative approach and made it ideal and more convenient. This research adopted 36 University of Ghana http://ugspace.ug.edu.gh qualitative approach in order to have a clear understanding of and deeper information on how private sector is contributing to supporting the financing of climate change adaptation and how they are incentivized to initiate climate change adaptation projects and to green their economy. 3.3. Research design The purpose of the research was to investigate the private sector led initiatives on climate change adaptation. In order to achieve this purpose, an exploratory approach was employed. An exploratory approach is defined as the preliminary research into a hypothetical or theoretical idea (Kowkzyk, 2015). This is where a researcher has an idea or has observed something and seeks to understand more about it. An exploratory research project is an attempt to lay the foundation for future studies, or to determine if what is being observed might be explained by a presently existing theory. Most often, exploratory research lays the initial groundwork for future research (Kowkzyk, 2015). In view of this, the study sought to explore the various initiatives, challenges and incentives of the private sector on climate change adaptation and green economy. More of private sector focus is focused on climate change mitigation, hence it is in the interest of this research to understand why private sector does not focus much on adaptation, are there incentives and what are the challenges. According to Baxter & Jack (2008) qualitative approach to research facilitates exploration of a phenomenon within its context using a variety of data sources. This ensures that the issue is not explored through one lens, but rather a variety of lenses which allows for multiple facets of the phenomenon to be revealed and understood. In view of this, eight different companies selected from four industries i.e. financial, manufacturing, mining and oil and gas were explored to get a variety of information about the area of study. These companies included, Ecobank Ghana Limited, Guineas Ghana Limited, Newmont 37 University of Ghana http://ugspace.ug.edu.gh Ghana Limited, Association of Ghana Industries, Tullow Oil Limited, Unilever Ghana Limited, African Energy Consortium Limited and Peace Petroleum Limited. Other companies contacted included Coca cola Ghana Limited and Unibank Ghana Limited. 3.4. Scope of the study The scope of the study is restricted to only the Greater Accra Region of Ghana specifically private organizations under the umbrella of the Association of Ghana Industries (AGI). Although there are a number of private sector associations in Ghana, the AGI has been selected as the focus of this research because, AGI covers over 70% of the private sector industries in Ghana and has over 1200 registered members from across the regions of Ghana with about 25% as medium and large-scale industries. AGI as the focal point of this research helped to collate different views from a number of private sector institutions in the area of study (mentioned in the research design). The AGI who was the main focus of this research also provided relevant information on the private sector organisations. 3.5. Study population/sample size One of the most relevant attributes of any empirical study in which the objective is to make inferences about a population is the sample size. The choice of sample size is as important as is the choice of sampling scheme because it determines the extent to which the researcher can make statistical and/or analytic generalizations (Onwuegbuzie, & Collins, 2007). The population for this study comprises of the top managers and environmental officers of the selected companies under the Association of Ghana Industries (AGI). A total of twenty- four respondents were selected from across various private sector organizations and public and business associations. Data was also collected from policy makers and implementers to 38 University of Ghana http://ugspace.ug.edu.gh enrich the study i.e. Ministry of Environment, Science, Technology and Innovation and the Environmental Protection Agency. 3.6. Sampling design and techniques Sampling design depicts the approach, methodology and process adopted in choosing respondents for the attainment of the study objectives. The three main sampling designs postulated by Kumar et al. (1999) are the random sampling, non-random sampling and the mixed sampling techniques. The study however, adopted a purposive sampling (non-random sampling). A purposive sampling helps select the sample based on the researchers’ judgment about some appropriate characteristics required of the sample (Neuman, 2011 and Zikmund, 2003). This was used to select companies who have been involved in climate change adaptation either directly or indirectly over the years. Before arriving at the number of organizations and respondents, several organizations were contacted to ascertain their interest in the study. However, most of those that were contacted had no interest or little knowledge about climate change adaptation and felt whatever their activities are, did not have any relationship with climate change let alone adaptation. Some organizations on the other hand demonstrated a high level of knowledge in the area and were willing to participate in the study. Interviews were conducted with the adoption of purposive sampling technique. According to Boateng, (2014:137) “purposeful sampling techniques are ‘information rich’ and illuminative as it offers useful manifestations of the phenomenon of interest”. Pertaining to the level of information required for the study, respondents were purposefully selected. 3.7. Data collection instruments Data collection instrument refers to the technique used to gather data from respondents. The reliability of a research is dependent on the instruments employed. Telephone interviews 39 University of Ghana http://ugspace.ug.edu.gh were first conducted to ascertain the interest of the AGI and also identify companies in the study. A one on one interview was conducted to engage respondents more actively than is possible in more structured survey. An unstructured interview guide was used to conduct in- depth interviews personally by the researcher. 3.7.1. In-depth interviews Babie (2013), have asserted that, it is ideal for researchers to adopt in-depth interviews as it helps to avoid lead on situations. Researchers are able to ask follow up questions and respondents are also able to answer questions freely and extensively when in-depth interview technique is deployed. The adoption of in-depth interviews helped to gather detailed information about companies’ contribution to climate change adaptation. The interview was guided by an unstructured interview guide with open-ended questions. The duration of each interview was between sixty (60) to ninety (90) minutes. This helped the researcher to gather detailed information on the study area by voice recording discussions, taking notes as well as drawing meanings from gestures and behaviors of respondents. In order to assess the incentives available to the private sector, in-depth interviews were conducted with the Environmental Protection Agency (EPA) and the Ministry of Environment, Science, Technology and Innovation. 3.7.2. Informal discussions There were also informal discussions with personnel of AGI and other personnel from the selected companies. The AGI was mainly relied upon for contacts of selected private sector companies in this study. 3.7.3. Direct observation 40 University of Ghana http://ugspace.ug.edu.gh In addition to the interviews, field observations were made in order to provide supporting evidence of the various initiatives and projects undertaken by these companies. Pictures of some of these projects were taken and researcher was able to gather enough evidence to support information earlier given by interviewees. 3.8. Sources of data collection Primary and secondary sources of data were both adopted in order to achieve the objectives of this study. The primary sources of data were gathered from the AGI, Ecobank Ghana Limited, Unilever Ghana Limited, Guineas Ghana Limited, Newmont Ghana Limited, African Energy Consortium Limited, Tullow Ghana, Coca-Cola Ghana limited, the EPA and MESTI. A systematic research of the secondary data was undertaken prior to conducting the primary research. The secondary information provided a useful background and identified key questions and issues needed to be addressed by the research. 3.9. Primary sources of data collection The research used in-depth interviews to collect primary data from respondents. This tool was used as a result of its flexibility attribute that allows the researcher to create questions during the interview process. It further allows the researcher to probe for details and more insight into issues based on responses given. The in-depth interview helped to tap into the knowledge of respondents about the study area irrespective of the questions prepared ahead for the interview. Face to face interviewing technique was used because it gave the researcher the opportunity to explain questions very well for respondents to get the main import and a better understanding of the questions. This technique helped the researcher to ask follow up questions for further clarification of issues raised. 3.10. Secondary sources of data 41 University of Ghana http://ugspace.ug.edu.gh A variety of secondary sources of data used included journal articles, annual reports, magazines, newspapers, periodicals and business reports. Other books on climate change adaptation and previous researches were reviewed for deeper insight into the underlying concepts of the study as well as companies’ website. Appropriate and relevant literature on climate change and related issues were consulted. Finally, the internet was a very important source from which secondary data was collected for the study. 3.11. Data management and analysis Data analysis in this research consisted of ‘three concurrent flow of activity: data reduction, data display and conclusion drawings or verifications’ (Miles and Huberman, 1994: 11). In other words, the section focused on the entire management of the data through the analysis stage to the presentation of the major conclusions of the study. Qualitative analysis involves sorting and sifting of data, identifying types, classes, sequences, patterns with the goal to put together data that is meaningful and understandable (Jorgensen, 1989). Content analysis was used to analyze the interview transcripts. Content analysis is a technique that is used to organize transcribed material by coding interview data into chunks representing a common theme or new themes that emerge from the interviewee quotes (Côte, Salmela, Baria & Russell, 1993). Deductive reasoning was also employed to arrive at conclusions in the final analysis. Data collected through in-depth interviews were transcribed, sorted out and presented in themes such that it clearly addresses the objectives and questions of the study. Data for this qualitative study were transcribed and the results presented according to the initiatives, challenges and incentives for private sector involvement in climate change adaptation. Coding was done manually by the researcher. First and foremost, an open coding was used to identify key concepts and categories in the data. Data was categorised into main and sub- 42 University of Ghana http://ugspace.ug.edu.gh headings. An axial coding was further used to confirm that concepts and categories were accurately captured in line with findings. 3.12. Validity and reliability Babie (2013) explains validity and reliability in research as a pertinent element of every research since they highlight the strengths of data in order to draw final conclusions. In view of this, data was collected in two folds. The first step was to interview respondents on phone, followed by a face to face interview where respondents were recorded. Questions that were asked on phone were repeatedly asked and voice recorded. Even though some respondents were unwilling to grant the face to face interview, the researcher managed to convince them to this effect. This allowed the researcher to compare and draw conclusions as to whether there are variations in the responses of the same respondent. 3.13. Ethical consideration It has been recommended by Fraenkel and Wallen (2000) that researchers should give assurance of highest confidentiality for data provided by respondents for any study. People requested to participate in the study were asked for their informed consent before they were interviewed. They were also well-versed on their liberty to pull out from the study as they wish. The purpose of the study was explained to the respondents who were aslo assured of confidentiality. The data were treated as aggregates hence personal identities were not revealed. The assurance is believed to make respondents as open and honest as possible. It also sought to minimize the tendency of responses that may not be reliable. 3.14. Conclusion This chapter has sufficiently discussed the methodology used for this study. It presented details of how the research was undertaken. It discussed the research approach, research 43 University of Ghana http://ugspace.ug.edu.gh design, scope of the study, study population/sample size, sampling design and procedure, sampling techniques, sources of data, data collection instruments, collection and data analysis. 44 University of Ghana http://ugspace.ug.edu.gh 3.15. Profile of Selected Companies Table 1, Companies profile Name of Company Year of incorporation Areas of Operation in Ghana Ecobank Ghana  19th February, 1990, as a  77 branches in Ghana Limited Merchant Bank  2003 as a Universal bank Guinness Ghana  Incorporated in the year,  Headquarters, Kaasi located Breweries Limited 1991 in the Ashanti Region and Achimota, in the Greater Accra Region with about 1,200 labour force. Newmont Ghana Gold  Initiated in 1921 and has  Operations in the United Limited openly traded since 1925 States, Australia, Ghana, Peru, and Suriname Tullow Oil Limited  Founded in 1985  Jubilee fields  TEN fields (Tweneboa, Enyenra and Ntomme) The Association of  Established in 1957  Based in Accra with Ghana Industries companies cutting across all industries in Ghana African Energy  Established in 2007  Operates in Ghana and Consortium Limited across Africa Unilever Ghana  Established in July 1992  Operates in Ghana and Limited across Africa MESTI  Established in 1993  Operates across Ghana EPA  Established in May 1973  Operates across Ghana Source: Researchers own construct (2017) 45 University of Ghana http://ugspace.ug.edu.gh CHAPTER FOUR DATA PRESENTATION AND ANALYSIS OF FINDINGS 4.1. Introduction This chapter presents the analysis of the research data collected from the selected private sector organizations. The structure of the chapter is presented in themes. The thematic presentation is in line with the objectives of the study: the adaptation strategies and initiatives used by private sector to deal with the consequences of climate change; the incentives available for private sector involvement in climate change adaptation by government and the challenges of the private sector led initiatives to climate change adaptation in Ghana. Emphases have been placed on direct assertions by respondents where necessary. In order to meet the objectives of the study, data collected has been analysed and organised into themes. The themes include; environmental and social risk policy, advocacy, corporate social responsibility, awards systems, green initiatives, motivation to do something good, challenge that climate change risk is real, attraction from partnerships, projects viability, high cost of production, Unattractive Government incentives, inadequate collaborative efforts, private sector initiatives, financial challenges, absence of clear cut policy, lack of recognition and standardization and poor knowledge base. 4.2. Various initiatives by the private sector towards climate change adaptation in Ghana 4.2.1. Introduction Interestingly, the qualitative data collected from respondents depicted that, companies from diverse sectors are involved in different adaptation and green initiatives whereas others are not interested in climate change or anything related to it. Each of the sectors considered in 46 University of Ghana http://ugspace.ug.edu.gh this research had some climate change adaptation measures been undertaken and others yet to be implemented. Some of these measures include the establishment of environmental and social risk policy, advocacy, green initiatives, corporate social responsibility, awards system, funding green projects and sustainability. 4.2.2. Environmental and Social risk policy Across the sectors touched in this research, only two institutions interviewed from the financial and mining sectors had clear cut policies towards environmental and social risks which ensure effective environmental management practices in their line of activities and processes. According to these respondents, they give recognition to the impact of climate change and the changing environment hence the need for them to be more conscious about their environment. For instance, when a question on whether companies have a policy on climate change adaptation or green economy was asked, one respondent from the financial sector retorted; “Oh yes, in accordance with our environmental and social (E&S) risk policy, we ensure effective environmental management practices exist in all our activities. We finance projects that are consistent with our E & S risk management policy guidelines. We do not have a specific policy on climate change adaptation but it is actually incorporated in our E&S policy. But like I said we are not project implementers so the policy we have is geared towards financing viable and bankable projects. We have specific guidelines that a proposed project is required to meet. So, we do have a policy just that it is not an independent one.” Other respondents who were interviewed face to face from the sectors other than the financial and mining sectors did not have a clear-cut policy. One respondent when asked the same question responded as; “We do not have a blueprint or a clear policy but we involve in climate change activities even though not direct. We discuss with our members especially those in the agric sector and agro processing the right way to reduce our impact on climate change and the adaptation initiatives they can take. But we have incentives for our members to 47 University of Ghana http://ugspace.ug.edu.gh get involved in climate change adaptation. Though we may not have a clear policy, we concern ourselves with climate change issues.” This indicates that though some organizations have initiatives and strategies towards green economy, they do not pay much attention to establishing a policy that will serve as a blueprint for their operations. This therefore supports the argument of PWC (2010) that many businesses could hold back rather than pre-empt decisions on climate change adaptation due to the likelihood of the absence of clear policy direction from government. If government being a mandatory stakeholder does not have a clear policy direction, how then will the private sector in their capacity as a permissive stakeholder have one? One respondent from the oil and gas sector passed a funny but sensitive comment. He asserted that; “My dear did you by any chance hear of anything climate change or green economy in the recent budget read by the Finance Minister? So, if government is not even considering it, why will a profit-making organization like mine consider a policy on it? We do not have a policy on climate change adaptation but we do some corporate social responsibilities that have probably a bit of adaptation in it. I don’t think even the government will expect me to have a policy for only climate change. When you went to the companies, how many of them did you find with climate change adaptation policy. Well I am sure, some may have an environmental and sustainability policy may be because of the government environment regulatory bodies but how strong are these institutions. So, you see, it’s about time the governments take the lead in some of these things so the private sector can follow.” Evidence is therefore pointing to the fact that most of the private sector organizations do not have a clear policy on mainstreaming climate change adaptation in their activities. Clearly, findings indicate that about 80% of these private sector companies are not aware of government policies towards climate change adaptation in Ghana. Findings also have shown that the few companies who have policies do not have ones that are specific or independent but rather incorporated in their environmental policies. According to the PwC (2010), the lack of clear policy direction from government has resulted in most companies laying back and “waiting to see” what will happen. They (PwC) further state that private sector activities 48 University of Ghana http://ugspace.ug.edu.gh in climate change adaptation are limited in key sectors. This is evident from the findings of this research which depicted that sectors like the financial and manufacturing have some climate change adaptation initiatives to show most especially the financial sector. 4.2.3. Advocacy The findings from the field indicated that some private sector organizations do not have direct climate change adaptation projects, however, they engage in climate change adaptation through sensitization, awareness creation and advocacy. This is done through the organization of workshops, seminars and public lectures to educate participants on the impacts of climate change on their businesses and the economy in general. They also educate them on the need for climate change adaptation and green economy. The Association of Ghana Industries being the umbrella body for private sector industries in Ghana and key advocacy association revealed that though they do not have adaptation projects, they constantly educate their members and encourage them to support the course to fight climate change by integrating adaptation measures. They further revealed that, their members are motivated to involve in climate change adaptation through an award system. In explaining this, the respondent said; “We discuss with our members about climate change and even though we do not directly involve in adaptation projects, we organise workshops for our members to discuss on how to improve their environment compliance systems especially for those in the agriculture sector. We have an award system that includes categories for best environmental compliance company, best manufacturing company and so on. This is to encourage members who already have such initiatives to do more and for those who do not involve to get involved. Our members who receive such awards are very much encouraged because it gives them some kind of recognition.” Drawing from these findings, it could be clearly seen that a large number of the private sector organizations are not having specific projects to show for climate change adaptation, however some of them are using other means such as advocacy to sensitize the public against the 49 University of Ghana http://ugspace.ug.edu.gh impact of climate change. This is in line with the findings of Bayer (2010), where it was evident that companies take other initiatives to support in educating climate change affected regions as well as organize environmental painting competitions. 4.2.4. Green initiatives About 80% of the sectors considered in this research had project initiatives in green economy. This is termed as green initiatives in this study. The financial and mining sector once again had something to show in this perspective. For instance, within the financial sector, a respondent revealed that, the company launched an initiative to reduce waste by substituting non-degradable polythene “cash bag” for bio-degradable paper “cash bag” to be used by staff specifically tellers for customers with substantial cash withdrawals over counters. It was further revealed the company established collaboration with some paper recycling companies within the private sector to collect the companies waste shredded paper material for reuse. Again, findings from the financial sector depicted that most of the companies do not have green initiatives with specific projects but rather provide funding for adaptation projects that are geared towards green economy. Some of these initiatives include partnership with government institutions like the Ministries, Departments and Agencies. For instance, respondent from the financial sector revealed that their company had provided funding for some adaptive initiatives by government institutions. The likes of the Volta River Authority, Energy Commission and the Ghana gas have received funding from this financial institution. About 90% of respondents from the mining sector confirmed that the company has green initiatives. However, according to them, these initiatives some of which are yet to be implemented are only a few. The respondents made mention of reforestation and biodiversity as some of the initiatives that are being implemented and further hit on certain strategies yet 50 University of Ghana http://ugspace.ug.edu.gh to be implemented. These strategies include; reduction in carbon footprint, building a collaborative effort to adapt both internally and externally and develop an implementation plan to partner with other stakeholders. In order for the researcher to get a clear understanding of these adaptive initiatives and strategies, the respondents were asked to describe the type of initiative. It was gathered that, the company has initiatives like reforestation around disturbed areas of their operations and these are done through the donation of seedlings. According to a respondent, one area which has benefited from this adaptation initiative is the Bui catchment community. He added that the company also takes care of biodiversity which enhances the environment and in effect avoid variations in climate. It was also revealed by the respondent that the company has done a baseline report of weather patterns in order to adjust to it. The respondent said in his words; “We have done a study to know the weather-related patterns for the past fifteen years and because we depend on Akosombo for electricity which is hydro, it is important to know the weather patterns in order to move into the future. So, we have a baseline report on weather patterns to help us adjust as well as predict the weather in future. There is also a team we have set up to conduct these researches. We have a number of projects in the pipeline that has the adaptation bit in it. We also have done projects in the communities of our operation and even outside but what we haven’t done is mapping up all such projects that are adaptation projects.” Other projects that were in the pipeline included water stewardship which involved the revegetation of buffer zones. The respondent added that their company has a number of initiatives they are about to implement. In his words, he asserted that; “We have other projects that we have done within the communities of our operation; it is left for us to map it up into climate change. We need to educate people and this is something we planning to do. We have signed a Memorandum of Understanding with the Forestry Commission to do a reforestation project for about 300 hectares of land in Akyem. So, if you ask me, we have a lot of initiatives just that we are yet to map them up. If you can see from my computer (turning the computer for researchers view), you will notice we have a plan for 51 University of Ghana http://ugspace.ug.edu.gh your climate change adaptation as part of our environment and sustainability plans.” Findings gathered from the manufacturing and oil and gas sectors indicated that, little was being done by companies in these sectors on climate change adaptation and green economy. Even though the company representing the manufacturing sector in this research had few initiatives to show, other companies within the sector did not involve themselves in climate change adaptation and green economy. Some of these initiatives included; recovery of biogas from waste water treatment processes for combustion in boiler, thereby reducing the use of residual fuel oil, replacement of high consuming fluorescent tubes with bright but low wattage LED lights. According to the respondents, all these are towards reducing greenhouse gas emissions which in turn improves carbon footprint. It has clearly confirmed from this finding that this manufacturing company does not have initiatives within their communities of operation however, contributing to climate change adaptation indirectly and internally. It is also evident from these findings that, though some of these initiatives are mitigation measures, its co-benefits are adaptation elements. Findings from the oil and gas sector revealed that, even though a few of these companies involve in climate change adaptation, some are also unconcerned. To verify this, some of the companies that could not be reached for a face to face interview, had information gleaned from their websites on the initiatives and strategies in climate change adaptation. In page 46 of the Tullow Oil 2015 annual report and accounts, concerns about climate change were raised by the company. According to Tullow, they give recognition to the worldwide threat posed by climate change and therefore acknowledge the need to reduce greenhouse gas emissions. They admitted that indeed their activities and products contribute to climate change and hence accepts the responsibility to comply with legislations and regulations in that direction. 52 University of Ghana http://ugspace.ug.edu.gh One initiative identified with the company as part of their annual report was a crises management system initiative. This was tested in Ghana in the year 2015 when their Accra offices were flooded during some extreme weather. It was successfully tested as the company was able to resume full operations within twenty-four hours. It is important to reiterate the fact that, though some of these companies are adapting to climate change, others are not really concerned. This is evident as findings revealed that, the refinery companies do not actively involve in climate change adaptation and green economy. Respondent from this sector indicated that, the company does not implement climate change adaptation initiatives. When asked whether the company actively involve in climate change adaptation, he retorted; “The issue about climate change has never come up in our line of operation. We are a refinery oil company and our impact on climate change is insignificant and so I don’t think I can help you with any initiative. Moreover, there is no money in the system to even think about climate change initiative. We are busy looking for money.” This however contradicts with the view of IPIECA, 2016 (a non-profit global association) that the oil and gas industry must be a key stakeholder of climate change solutions. In addition, this report further revealed that, a “Paris Puzzle” i.e. papers envisioned to address the key components of efforts to solve climate change, established the commitment of oil and gas companies to reduce their greenhouse gas emissions and address climate change challenge. 4.2.5. Corporate social responsibility (CSR) Information gathered from primary data collected indicates that, about 90% of these private sector companies focus on corporate social responsibility which has only a slight aspect of adaptation and green economy. For instance, findings from the financial sector revealed that, the company in 2014 partnered with the J. A. Kufuor foundation to provide a solar pump for 53 University of Ghana http://ugspace.ug.edu.gh the people of Kojo Ashong in the Greater Accra Region of Ghana. In the Ga Rural Area, the company has also provided a solar system for a clinic to support community members. Irrespective of the fact that these were corporate social activities undertaken by the company, the solar panel and solar system for both communities will help reduce the impact of the absence of hydro power on those areas due to inadequate rainfall which is as a result of climate change. These though are adaptation initiatives advancing towards green economy, were not specifically captured as so. All the sectors considered in this research have engaged in CSR activities with the aim to improve the lifestyle of people. These activities may not be captured as adaptation initiatives or strategies or better still a green initiative. Even though it improves the lifestyle of people, it does not necessarily reduce environmental risk. Activities like monetary donations, funding malaria projects, digging boreholes, water and sanitation projects, building schools, toilet facilities and hospitals (CSR activities cutting across the sectors) may not be considered as climate change adaptation projects regardless of the fact that it improves the lifestyle of people. This is in line with Prabhakar’s assertion concise in (Fujikura and Kawanishi, 2011) which highlights that, in the context of Africa, the involvements of the private sector are focused on firming up community livelihoods. Prabhakar further notes that, such initiatives face the challenge of scaling them up and their sustainability impacts too are uncertain. After an examination of the worldwide economic environment, Levy (2015) concluded that the CSR is not a likely remedy to the crises of climate change. He explained that, as the basic equation of economic life increases the worldwide population and in turn increases consumption, businesses will always opt for a short-term approach rather than a long-term one so far as this paradigm exists. 54 University of Ghana http://ugspace.ug.edu.gh Levy’s assertion has been affirmed by Agrawala et al. (2011) who also states that, most businesses do not tag their activities as adaptation, rather their movements are intended to advance business pliability, or to manage ecological or climate perils which may not be considered as adaptation. Since the benefit of adaptation is frequently local and private and mostly profits only the company itself, adaptation does not fall under standard Corporate Social Responsibility (CSR). A respondent from the financial sector in answering the question as to whether their company has an initiative asserted that; “We do a lot of CSR activities which have climate change adaptation piece in it. For instance, we provided a solar pump for the people of Kojo Ashong and have also provided a solar system for a clinic within the Ga Rural area recently. I can even show you pictures of these projects and those we have done in the past. The projects though not categorised as a climate change adaptation projects, have improved the lifestyle of people and served as a supplementary to the use of energy so in a way we have initiated some adaptation projects but like I said we are mainly project financiers.” 4.2.6. Awards system The study revealed that, about 40% of the private sector companies have other initiatives that are geared towards motivation to initiate climate change adaptation projects. Just as some cities are awarded for addressing climate change impacts i.e. C40 awards, some private industry associations in Ghana also have taken the initiative to award their members who have climate change adaptation initiatives. For instance, the Association of Ghana Industries (AGI) has an award system where their members are awarded for categories like the best environmental compliance company, best manufacturing company among others. This according to the AGI is purposed to encourage members to get actively involved in issues relating to climate change adaptation and abide by the environmental compliance legislations and regulations. For example, in the United Kingdom, a body known as climate leadership awards in collaboration with Non-Governmental Organizational partners have an award 55 University of Ghana http://ugspace.ug.edu.gh system with categories for organizational leadership in climate change adaptation, individual leadership award, supply chain leadership award, excellence in greenhouse gas management and innovative partnership among others (EPA Centre for Corporate Leadership, 2017). This accordingly, is meant to recognize and incentivise corporate organizations and individuals to respond to climate change. It is important for the study to draw the attention of other associations, development agencies, government and the entire private sector body to initiate such award systems in order to drive their interest towards climate change adaptation. 4.2.7. Sustainability and Impact of Initiatives In line with the argument of (Eriksen & O’Brien, 2007) that not every adaptation initiative to climate change is good, it is important to assess whether the initiatives by the private sector are good hence their sustainability. Indeed, about 50% of the sectors have concrete sustainability mechanism to climate change adaptation. Respondent from the financial sector for instance, confirmed that the company has a sustainability mechanism even though they are not project implementers. Adding to this, the respondent explained that though the company provide funding for projects, the concern is on projects that are viable. He asserted that; “In as much as we are not project implementers or developers, we monitor the projects we fund. We have a project monitoring unit that monitors all our projects. We are in essence lenders but of course, we do not fund just any project, the project brought in by clients must be viable for us to fund. Our team monitors the progress of projects in every three months. So indeed, we are able to sustain projects and the impacts are great” Regarding the manufacturing sector, respondent addressed the issue of sustainability as through the stretching of key performance indicators and also through projects aimed at reducing carbon foot print. Seeking further clarification as to what the respondent really meant, he explained they ensure that, there is a reduction in their greenhouse emissions which 56 University of Ghana http://ugspace.ug.edu.gh in turn improves carbon foot print. It was also revealed from findings that the company has a sustainability department in charge of project sustainability. On the other hand, respondents from the mining sector revealed that, the company sustains the few initiatives they have through a tracking mechanism. They indicated that the company’s yet to be implemented projects have action plans that support the tracking as well as work plans, setting Key Performance Indicators and targets for adaptation initiatives. The oil and gas sector also saw compliance to emerging regulations and legislations of climate change as a mechanism to sustain their initiative. Information gathered from the 2015 annual report of Tullow Oil revealed that as part of their climate change adaptation mechanisms though not an initiative, they seek to conform to all existing and emerging regulations and legislations in order to reduce their greenhouse gas emissions and measures to adjust to highly challenged weather conditions. The primary data collected from this sector indicated the absence of climate change initiative hence the absence of sustainability. Findings from the study further revealed that, climate change adaptation initiatives by companies across these sectors had a little impact within their host communities. Respondents from all the sectors but the financial sector could not tell the kind of impact their initiatives have within the communities of implementation. One respondent from the mining sector mentioned that, the company is yet to create awareness in their communities so the impact of their initiative is not yet realized. 4.3. Various incentives available for the private sector initiatives towards climate change adaptation in Ghana. Private sector could be influenced to initiate climate change adaptation mechanisms and many investment options. This is corroborated by Flatt & Huang, (2012) who have categorised adaptation incentives into; one that can be influenced or in certain cases 57 University of Ghana http://ugspace.ug.edu.gh constrained by government, legislations and regulations as well as incentives and policies. The other aspect is the one that is influenced by forces like recognition of private sector response to market signals, public opinion, utilities, commodities prices and so on. According to the UNGC (2011), the issue of danger and doubt about climate change impacts by some companies might be a hindrance to companies’ ability to access funding for adaptation investments with proactive risk management plans. This assertion presumes that some companies are not pushed to initiate climate change adaptation mechanisms because they have doubts about climate change impacts on their businesses. Findings from the study have confirmed that about 60% of the companies believe their impacts on climate change and the impact of climate change on their businesses is insignificant hence there is no need for adaptation initiatives. This objective sought to identify the available incentives for private sector adaption and the expected incentive to push them to invest in climate change adaption and green economy. The assumption is that, when incentives are identified, it will inform other permissive stakeholders to get involved in the cause to fight climate change in Ghana. It will also inform mandatory stakeholders in this case, government about the expected incentives that can push the private sector and other stakeholders to invest in climate change adaptation. It will also guide government on the kind of policies to make in this regard. Data gathered in respect of private sector incentives have been arranged in themes according to the most frequently given answers. The study identified the following incentives cutting across all sectors; the challenge that climate change risk is real, corporate social responsibility, motivation to do something good, attraction from partnerships, projects viability and high cost of production due to climate change impacts. 4.3.1. The challenge that climate change risk/threat is real 58 University of Ghana http://ugspace.ug.edu.gh It was revealed from findings that, the push factor for some private sector companies is the reality of the risks associated with climate change. According to UNGC (2011), private sector companies from both developed and developing countries believe that, the impact of climate change is risky to their businesses. It therefore supports the findings that, companies are incentivise to adapt due to the risk it poses on their businesses. This is in line with the findings of Agrawala et al. (2011) in their OECD environment working papers where Électricité Réseau Distribution France (ERDF)’s involvement in adaptation was catalysed by experiences of adverse climate impact on their businesses. They further note that motivations for engagement in climate change vary, indicating one instance as due to the previous losses as a result of climate events and risks. For instance, a review of the Tullow Oil plc 2015 annual report indicated that, the drive for their involvement in climate change adaptation is as a result of their recognition for the global threat posed by climate change and therefore acknowledges the need to reduce their greenhouse emissions. It was also evident from respondents in the mining sector that, obvious threats of climate change like droughts and floods could severely affect their operations. The respondents also corroborated the recognition of the global threat of climate change as stated by Tullow Oil plc in their 2015 annual report. This was also evident in the other sectors considered in this study except for the few companies who did not prioritize climate change adaptation in their line of operation. A theory developed by Kahneman and Tversky (1979) called the “prospect theory” affirms that decisions could be made under the conditions of risk and normally viewed as choice between “prospects and gambles”. This theory therefore supports the findings of the study that, reality of climate change risks/threats challenges some private sector companies to adapt. 59 University of Ghana http://ugspace.ug.edu.gh 4.3.2. Corporate social responsibility (CSR) Even though Agrawala et al. (2011) and Levy (2015) have concluded that, climate change adaptation does not fall under CSR; findings from the study indicate that, contrary to this view, some companies feel climate change adaptation is their CSR. They are therefore incentivised to adapt as it is seen as their CSR. Respondents were of the view that, the CSR activity of which adaptation initiatives are incorporated is a way of giving back to society. Findings across the sectors revealed that, most of the adaptation initiatives were captured as part of the companies’ CSR. For instance, in the financial sector, solar projects and energy renewable projects were all included in their CSR activities. For instance, the respondent from the financial sector said; (earlier quote) “We do a lot of CSR activities which have climate change adaptation piece in it. For instance, we provided a solar pump for the people of Kojo Ashong and have also provided a solar system for a clinic within the Ga Rural area recently. I can even show you pictures of these projects and those we have done in the past. The projects though not categorised as a climate change adaptation project, has improved the lifestyle of people and served as a supplementary to the use of energy so in a way we have initiated some adaptation projects but like I said we are mainly project financiers.” 4.3.3. High cost of production due to climate change impacts Primary data collected depicts that companies’ motivation/incentive to adapt is driven by the high cost of production as a result of climate change impact on their businesses. The mining sector for instance finds this incentive very eminent to their investment in climate change adaptation. A respondent was emphatic when he said this; “We are challenged to implement adaptation initiatives due to the high cost of production stemming from the impact of climate change. The alternate cost of energy for our operation is high. Since we depend on Akosombo for electricity which is hydro, we will be highly affected if there is the absence of hydroelectricity as a result of climate change. Solar energy is very expensive. That is why as part of 60 University of Ghana http://ugspace.ug.edu.gh our initiatives, we do studies on weather related patterns which gives us a baseline report on weather patterns to help us adjust as well as predict weather in the future.” Again, it was revealed that companies engage in adaptation in order to protect their value. The mining sector especially engages in practices that are intended to protect their value of existing and potential assets. In support, Nelson (2009) postulates that, mining companies pursue a range of adaptation practices in response to present and future disruptions tied to climate change by way of protecting the value of existing or potential assets. He further identifies some health and safety risks associated with climate change impact on businesses. This will induce cost on companies as they may have to implement health and safety measures for employees at a cost. Respondents from sectors other than the mining sector mentioned that the motivation to adapt is also as a result of the higher cost of production due to climate change. The manufacturing sector also admitted that energy is a major contributor to their operational cost hence their investment in energy efficiency can save them some money. The respondents from the oil and gas sector retorted that though their company does not get actively involved in climate change adaptation, they engage in some soft adaptation practices like energy efficiency in order to improve their market competitiveness. This is in line with the rational choice theory adopted in this study. It is obvious that relating to the theory, most of the companies does a cost and benefit analysis before initiating any adaptation measure. All the respondents were concerned about their cost of production and the kind of returns they get hence influences their decision making on the environment. 4.3.4. Project viability The study revealed that, the drive for some companies to invest in climate change adaptation is the feasibility of the projects being initiated. Specific to the financial sector, respondent indicated that as project financiers and lenders, their interest lies with projects that are 61 University of Ghana http://ugspace.ug.edu.gh bankable and viable. Other sectors also revealed that, before partnering to do adaptation projects, they consider the viability of the project. For instance, a respondent from the mining sector said; “We look forward to partnering with government and other Non- Governmental Organisations but we are also particular about the feasibility of the kind of adaption initiative. There should be an attraction from partnership. Projects under partnerships must be viable and standardised. We do not accept to finance just any project and this is why we hire experts to examine the viability of projects that we finance. It’s a rigorous process in order to be sure that we are investing in the right projects” It can be drawn from the above findings that, some private sector companies are incentivised to initiate adaptation projects, partner or provide funding for such projects if those projects are seen to be viable. 4.3.5.Partnerships Findings from all the sectors revealed that the private sector is moved by opportunities for partnerships with governments, donor agencies and development partners. Respondents from across the sectors indicated that, in as much as they do not receive no or attractive incentives from government to initiate adaptation projects, they will be pushed to invest if government partners with them on certain adaptation projects. According to respondents, adaptation financing is quite expensive hence looking forward to more partnerships with government and donor agencies. Respondent from the financial sector expressed their interest in adaptation and was concerned about their recognition as a “taught leader” in the private sector. Further to this issue of partnership, respondents across expressed their displeasure about the fact that, incentives from government were limited. They mentioned also that, quite apart from their own personal drives, the incentives for adaptation should come from government. 62 University of Ghana http://ugspace.ug.edu.gh Concerns raised included the involvement of private sector in climate policies and plans. Other concerns were about how a financial scheme can be set up to implement climate change actions by development partners and other businesses such as the Non-Governmental Organisations and business associations. Following the above concerns raised the views of Asia’s Climate and Development Knowledge Network (CDKN) cannot be overemphasised. The CDKN (2016) asserts that, to leave out the private sector in the management of climate change is an opportunity missed and this can prevent a transformational change. A suggestion made by the CDKN (2016) was that, in order for the country to build on its reputation as an innovator on climate change issues, it is important to deepen government’s engagement with businesses by sending clear policy signals that the private sector is a critical partner towards the achievement of climate compatible growth with respect to adaptation. 4.3.6. Motivation to do something good Another interesting finding from this study is that, companies engage in climate change adaptation because they want to do something good. About 90% of the private sector organisations do not see their initiatives as a responsibility even though their activities may directly or indirectly impact the climate change. Across the sectors studied, respondents were excited when they said that, the one thing that brings them joy and satisfaction is when they are able to impact the lives of people. Some of the respondents who had no specific projects revealed that if all things being equal, their adaptation would have been driven by the will to do something good. For instance, a respondent from the financial sector noted that, their company wants to be seen internationally as a green conscious company as well as create a good impression about themselves. So indeed, doing something good as a motivation for 63 University of Ghana http://ugspace.ug.edu.gh companies’ adaptation does not end there. However, companies look forward to recognition for their good done. 4.4. Challenges of private sector-led initiatives on climate change adaptation in Ghana Irrespective of the fact that most studies have concluded that the involvement and investment of the private sector in climate change adaptation is low (Agrawala et al. 2011; Buchner et al, 2011; Kato et al. 2014; UNFCC, 2007; UNGC et al. 2011; PWC, 2010), some factors have been identified as a constraint for those who have appreciable level of investments in climate change adaptation. The section seeks to find out the challenges faced by private sector companies in initiating climate change adaptation actions. The study revealed the financial challenges, lack of recognition, lack of clear cut government policy, lack of collaborative effort, lack of standardisation, absence of government incentives and poor knowledge base as some of the challenges. 4.4.1. Financial challenges Financial challenge was identified as a major constraint to private sector investment in climate change adaptation. Presented in different ways, some respondents said; there were limited funds, others said they do not have enough funds and therefore are in expectation of funds from donor partners and partnerships with government. Others raised concern that in as much as they are willing to initiate adaptation measures and projects; the absence of tax incentives has become an obstacle to private sector adaptation. According to Terpstra and Ofstedahi (2013), in cases where private sector investments are unlikely may be as a result of the nature of adaptation need. According to them, some investments are seen as a public good and not profitable. Funding projects like water infrastructure, flood protection, disaster management is quite expensive hence the need for public-private partnerships. One of the key concerns raised by a respondent from the mining 64 University of Ghana http://ugspace.ug.edu.gh sector is that, the company cannot do much in financing climate change adaptation due to lack of finance. In his words, he said; “It would have been good for us to do much regarding adaptation but we can only do so little. Doing so little, if you go out there and you tell people you want to do energy and climate change, people go like wow. You create a different interpretation, now everybody thinks it’s you and the government so they going to sell all their climate issues so there is that high expectation to come and do your bit, so sometimes you are mindful of how you articulate it to people and you don’t get bombarded with commitments” It can be deduced from this assertion that no one stakeholder can take up the mantle to fight climate change by itself. Due to the cost involved in financing climate change adaptation, and just as the government cannot do it all, the private sector cannot do it all too. Another respondent from the financial sector revealed that since they are not mainly project initiators and implementers, financing adaptation projects that are bankable comes with extra cost. In explaining this, the respondent said that, in view of their little knowledge in the area because of their sector of operation, it becomes apparent to hire an expert who would help them select which projects are bankable. He said in doing this, the company incurs extra cost. Respondents for the AGI talked about the inability of some of their members especially the small and medium scale enterprises (SMEs) to access funding for crucial adaptation investment. This is in line with the findings of CDKN (2015) who identified lack of finance as one of the challenges to climate change adaptation. 4.4.2. Poor Knowledge base One issue raised by majority of the respondents is the issue about knowledge. According to these respondents, most of the private sector companies know little about climate change and its impact as well as adaptation. This is in line with the findings of UNGC et al. (2011) who note that, the difficulty for companies to factor scientific data is high especially regarding 65 University of Ghana http://ugspace.ug.edu.gh long-term trends over large areas into local decision making. The challenge according to respondent from the mining sector is quoted below; “The challenge basically is the social i.e. how people seek to understand what climate change is. They do not have the basic understanding especially the adaptation piece so we have the duty to educate them and I think that is the basic challenge for us. For instance, the communities in which we have done a few adaptation projects have not really appreciated the impact because they do not understand anything. But we will gradually get there.” Respondents from the financial sector explained that due to their level of expertise and field in which they operate, they are challenged with the knowledge about new technologies in the field of climate change. In choosing projects for financing, they are always challenged to hire an expert who has adequate knowledge in climate change. In explaining this, he said; “If we do not have much knowledge in the field of climate change, the challenge is that we are a bank and how to get the experts in the field to advice the bank on the kind of projects to finance. Even with that, how do we get the assurance that the expert has what it takes since he/she may not have a track record? There are new technologies that are coming out. We have experts but some entities may bring in initiatives that are entirely new, how to check the viability/how bankable the project is, requires an expert knowledge which comes at a cost and this is the challenge.” This study will agree to the issue of poor knowledge base raised by respondents as it was observed that most of the respondents did not have much knowledge about climate change adaptation and green economy. 4.4.3. Absence of clear cut government policy According to CDKN (2015), laws, regulations and policies can be provided as an economic incentive for climate change adaptation. The absence of this will hinder or inhibit private sector investment in adaptation. PWC (2010) is of the view that the lack of clear policy direction from government has resulted in most companies laying back and “waiting to see”. “A country's development planning policies also have a very important role to play in the 66 University of Ghana http://ugspace.ug.edu.gh reduction of greenhouse gas emissions and the adaptation to climate change” (Mansanet- Bataller, 2010). This is in line with the findings of this research where the issue of lack of clear policy direction has been raised. Respondents across the sectors made mention of the fact that the absence of a policy direction from government affects their interest to invest. A respondent from the mining sector for instance mentioned lack of clear policy direction and vision strategy for private sector to support. In his words, he said; “The government does not have a clear policy direction and vision strategy that we can follow to support. Knowing what government is doing will guide the private sector as to which adaptation need to implement and what directions to take. And you know a lot of these policies are probably sitting on the ministries table. Yes, they are because we have heard time without number that government is coming up with a policy. There have been several stakeholders meeting we have attended to come up with a policy but we go sit and talk plenty yet no proper policy on climate change has come out. If really the private sector can be actively involved then government must sit up.” Gogo (2015) indicated that contrary to the finding above, failure to build climate resilience in a country will not be as a result of a lack of policy. The manufacturing sector however, confirmed the concern raised by the mining sector. In the view of the respondent, there is no framework or policy that will make resources available to drive attainment. In his words, he said; “There is the unavailability of a national tool and logistics for the private sector to get involved. Government does not have a clear policy or framework that will make resources available to push us to invest in climate change adaptation. Most of the policies available are International policies. It is about time government comes up with a blueprint that will encourage the private sector to invest. Yes, we know the government needs the support of the private sector due to how costly financing adaptation can be. But you know we are a profit-making organisation and in as much as we would want to invest, we need the enabling environment to do so. For instance, the government can lay down policies and regulations that will serve as a benchmark for private sector adaptation. So, when you go tell 67 University of Ghana http://ugspace.ug.edu.gh government we need to be incentivised. We always make it look like the private sector is sitting unconcerned but all these must be driven by the government” It did not end here as respondent from the oil and gas sector highlighted the absence of government policy as a challenge to private sector adaptation. When the respondent was asked if his company has a policy on climate change, he retorted; “My dear did you by any chance hear of anything climate change or green economy in the recent budget read by the Finance Minister? So, if government is not even considering it, why will a profit-making organization like mine consider a policy on it. We do not have a policy on climate change adaptation but we do some corporate social responsibilities. Government is supposed to be the leader for us to be followers. We are in business to make profit so if government wants us to support climate change adaptation, it has to provide us with incentives like these. The government itself does not have any clear- cut policy so it’s about time the government considers having one. You have to understand we the private sector does not really pay attention to some of these things so in order for us to be involved, we have to be motivated. Government regulations towards adaption must be clear in order for us to know where to invest our monies.” Relating to all the assertions made by respondents above it is clear that the private sector wants government to come up with a clear policy directive that will influence their investment and initiatives towards climate change adaptation and green economy. This concern has also been raised in other studies by the PWC (2010), GEF (2012), and UNGC et al. (2011). The finding therefore is in line with the issues raised by these studies. What it means is that though the private sector is the engine of growth, they can only operate when government creates an enabling environment with a clear policy direction. As it has been consistently and repeatedly talked about by respondents from the study as well as several other studies, it is important for government to consider their thoughts. 68 University of Ghana http://ugspace.ug.edu.gh 4.4.4. Unattractive Government incentives Aside the issue of lack of clear cut government policy raised by respondents as a challenge to their investment in adaptation, several other incentives have been identified by respondents to be a hindrance to their minimal involvement in climate change adaptation. Most of the respondents could not tell any direct incentive they receive from government. They all expressed their unhappiness about the absence of government incentives yet more is expected from them. Most of them made a business case for the few initiatives they have. Just like the financial sector, the Association of Ghana Industries when asked if they were incentivised by the government said “NO” out rightly, not even an indirect one. A respondent from the financial sector mentioned certain incentives that government can give to the private sector for their investment in adaptation. He said; “Who give incentives; probably it should come from government right? No, we do not have any incentive from government. One recommendation I have always talked about is probably for government to give us tax incentives for specific projects that financial institutions go out to finance. The other incentive I can think of is the bank being seen as a taught leader in the area of sustainable issues. That comes up when you are seen as the one who is in the forefront of financing certain adaptation project. Looking at it from, I mean good impression and seen to be green or green conscious, it is likely that you will make yourself attractive. If you ask me for direct incentives, like what? Government is going to give us money? Not at all, there are no incentives but of course the other thing is that you get attraction from international partnerships. For example, we have a partnership with the UNEP, we have signed onto the equator principle and by doing that and satisfying their requirements, we clearly are able to establish within the international community that, we are at that level of operation. I believe in the side of government they have to strengthen regulation.” Respondents from the mining sector also expressed their concern for government incentives. In the words of one respondent, when asked about the availability of government incentives to the private sector, he retorted; 69 University of Ghana http://ugspace.ug.edu.gh “If you ask me about a business case for doing climate change adaptation, then I could give you a number of them but if you ask for incentives from government, then I will say there are no incentives as we speak. But for our business case, we believe that climate change adaptation is real and because of the cost of energy for our operations also pushes us to adapt. We will appreciate tax incentives from and partnerships with government.” The manufacturing sector also was concerned about the absence of government incentives. When asked the same question, one of the respondents asserted that; “Well I can say that the incentive is kind of indirect through Environmental Protection Agency’s Akoben report assuming your good performance to the media. Other than that, I cannot place my finger on any incentive from government. However, there is a mandatory requirement from mother company, Diageo PLC to improve and this is used to judge country and site’s performance through the adoption of our Global Risk Management Standards. So, we have a standardization mechanism that influences our adaptation initiatives. But it is important for government to give incentives to attract the private sector. The issue about climate change is critical and we are all aware so government should be able to incentivise us to come up with such initiatives.” In the work of Flatt & Huang (2012), one of the categories for adaptation incentives identified is the one that is influenced or in certain cases constrained by government legislation and regulations, incentives and policies. In the case of this study, it is revealed that the private sector is constrained by government incentive. 4.4.5. Inadequate collaborative effort One other challenge identified by respondents is the lack of collaborative effort. A respondent from the financial sector when asked about the challenge the private sector faces in implementing adaptation initiatives said; “There is the absence of collaboration and for me; I think there should be more collaboration by people who are in similar fields. If I should say, there should be some consultants who should bring together small organizations to form a consolidation to be able to go out to do things that can attract funding. A typical example is India, where a company called SELCO solar, supply solar energy for very 70 University of Ghana http://ugspace.ug.edu.gh poor communities and there are people who for instance, take on one panel that provides solution for one board. So, the moneys that are used by communities to buy kerosene or the means of energy will be used to pay for that solar. The communities come together to form corporative that regulate the collection of fees.” The assertion by this respondent is in line with a report by FAO of UN (2010). It is indicated in their report that, climate change adaptation or mitigation is a call for the involvement of different uses of information and knowledge at different levels by different stakeholders. It further says that, indigenous adaptation practices must integrate local knowledge with scientific know-how. In this same vein, the private sector requires a collaborative effort from other stakeholders in their field of operation to come together to push the agenda of climate change adaptation forward. 4.4.6. Absence of Recognition and Standardization Findings from the study also revealed that, the absence of recognition and proper standardisation affects private sector adaptation. According to respondents from the financial and oil and gas sectors, there should be a clear standard that can test project viability and the equipment for the projects that goes in for financing. A respondent from the financial sector in explaining this said; “The projects that apply for funding come with their own risks. For instance, regarding solar projects, there are new technologies that are coming up which have not been tried and tested in our part of the world. Although they work efficiently in the template regions, they may not function properly in tropical conditions and these are big risks because some of that equipment can be expensive. If you bring it down and it fails, that can be a challenge. It is important for government regulatory institutions like the Energy Commission and the Ghana Standards Authority to do quality testing and clearly establish standards that is based on scientific research to ensure that for example, if you go in to fund a solar project with 10-20 million dollars, you don’t end up getting your figures because panels have failed to work as they should be. It is important for the standards authority to certify that equipment brought in have a track record to meet the necessary standards. We as a bank cannot certify the kind of equipment that comes in.” 71 University of Ghana http://ugspace.ug.edu.gh The mining and manufacturing sectors were also concerned with standardization though not a major challenge to them. Respondents also spoke about the fact that their little initiatives are not recognised by government. 4.4.7. Government’s Perspective The research also felt the need to involve policy makers and implementers about the available incentives for the private sector participation in climate change in Ghana. Respondents from the Ministry of Environment, Science, Technology and Innovation (MESTI) revealed that, a number of incentives are available for private sector initiatives in climate change and the unawares of the private sector does not mean there are no incentives. Respondents further highlighted the availability of policies guiding private sector involvement in climate change to include; the Environment Fiscal Reform Policy, Nationally Appropriate Mitigation Action (NAMA) Investor Guide, Green Climate Fund, Clean Development Mechanism, Red+ (reducing emission through deforestation and land degradation) among others. Concerns raised were that, irrespective of the fact that all these and more policies and incentives are available to the private sector, only a few are aware and benefit from it. According to respondents, the private sector in general are profit oriented hence anything that will not inure to their immediate benefit is not significant to them. Respondent further indicated that, efforts to create awareness across all sectors have not really been successful. This is because workshops, seminars and other relevant meetings organised for private sector in order to be informed about government policies and incentives in this direction has witnessed minimum attendance by the private sector. The Private Enterprise Federation (PEF) being the focal point for the private sector is constantly fed with information in this regard and made part of policy making process. It was further revealed by respondents that there isn’t much participation of private sector in adaptation, most of who are focused on mitigation with co- benefits of adaptation. They said, in as much as adaptation is important for developing 72 University of Ghana http://ugspace.ug.edu.gh countries, it is very expensive and government is not getting international funding for adaptation. This assertion is confirmed by information garnered from Ghana’s climate change data hub which revealed that, from 2011 to 2014, the international financial flows in the form of grants for climate change adaptation and mitigation were GHS40,226,363 and GHS621,089,710 respectively (Climate Change Data Hub, 2017). This therefore makes relevant the assertion by (Acclimatise, 2009a; Long, Zadek and Wickerham, 2009; PwC, 2010) that, every countries’ accomplishment in adaptation is reliant mainly on the choices made within the private sector. The involvement of private sector in climate change is key to government but efforts to get their participation in adaptation is challenging. This is because adaptation benefits are long-term and the private sector being profit oriented do not feel the need to invest. Respondents further indicated that the cost of adaptation is high and therefore most governments have not been able put in the right and enabling policies for the private sector to thrive. This according to respondents is why the participation of the private sector is minimal and this transcends from the international level as much of the funding goes into mitigation. However, there are a number of Non-Governmental organizations who are participating in climate change adaptation especially in the agriculture sector. Respondents also indicated that, government partners with the private sector to undertake adaptation initiatives. For instance, the environmental impact assessment by the Environmental Protection Agency ensures that, institutions’ use of environmental resources is in compliance with environmental laws and that is a form of partnership. According to respondents, adaptation is very critical to government despite the financial challenges. In view of this, government has introduced the Ghana Intended Nationally Determined Contributions (GINDC) which has eleven components of adaptation in it with incentives for private sector involvement. Respondents from the implementing agency also indicated a number of incentives available to the agriculture, forestry, manufacturing and other sectors in the 73 University of Ghana http://ugspace.ug.edu.gh country. Specifically, respondents revealed that the government provides insurance packages for farmers within the agricultural sector and pay companies or individuals who plant trees to protect the hill side i.e. the Forestry Investment Plan (FIP). Government also provides the private sector with incentives such as right technologies and enabling environment for them to operate. For instance, respondents revealed that, in the manufacturing sector, government provide incentives in the form of awards i.e. the Akoben system which is used to rate companies and those environmentally friendly ones are given tax rebates. Impressions from these findings indicate the focus of government incentives on mitigation and most especially for the agricultural and forestry sectors. When respondents were asked to address the issues of ‘awareness’ raised by private sector, they indicated that all the incentives for climate change adaptation and mitigation are available to the private sector as government raise awareness through the PEF which is the umbrella body for the private sector. According to them, it is the responsibility of PEF to educate its members about the various incentives available to the private sector. Respondents further revealed that the issue of unattractiveness of or lack of government incentives raised by the private sector is because of their lack of knowledge for the available incentives. It was further revealed that, government creates awareness among the private sector; however information flow becomes a barrier. This, respondents said is because most of these associations do not communicate the information by government to their members and the companies on the other hand do not attend workshops and meetings organized in this regard. According to respondents, as an implementing agency, the EPA ensures compliance of environmental policies through monitoring, reporting and verification. 4.4.8. Conclusion Reports by several studies relating to this study have revealed that, private sector focus on climate change adaptation is minimal though they have a long-standing focus on 74 University of Ghana http://ugspace.ug.edu.gh environmental sustainability. For instance, the works of UNGC et al. (2011) and PWC (2010) affirms this statement. In line with this assertion, findings from the study have revealed that, the initiatives by the private sector towards climate change adaptation are now evolving. It is vivid from the findings that, most of the companies have certain initiatives which may not be considered as adaptation but turns out to be in the direction of green economy. Several others have initiatives that are not in line with climate change adaptation yet inform the research as an adaptation initiative. Several of these companies do not engage in hard climate change adaptation investments. Most of the companies across the sectors focus more on reducing greenhouse gas emissions to mitigate climate change rather than focusing on how to deal with emerging climate risks and impacts. Findings showed that all the initiatives identified did not have strong impact on community members but mostly to protect and secure the companies’ future. Initiatives that were meant for communities though improve the lifestyle of people do not have direct impact on reducing or sustaining climate change. It was also not surprising to find that, companies did not have clear cut policies for climate change adaptation. Whereas some companies have concerned themselves with climate change issues hence doing little investments to guide their companies against the impact of climate change on their businesses, others are also unconcerned. Several others also indicated the support from government as their drive to initiate climate change adaptation projects. Regardless of all these, the study identified some initiatives such as reforestation, biodiversity, waste reduction through the use of bio-degradable paper, provision of funding for viable adaptation projects, partnerships, and research on weather patterns, crises management system initiative and other strategies adopted. Several studies have identified various incentives for private sector participation in climate change adaptation. Among these incentives are investment risks, financial earnings and regulatory wheels (PWC, 2010). Investments through communication of risks, incentives for 75 University of Ghana http://ugspace.ug.edu.gh resilience enhancing measures, regulation to avoid shifting risks onto the public and public- private partnerships (Biagini and Miller, 2013). Findings from the study is in line with that of the OECD which identified “factors like ability to finance adaptation that involves considerable upfront expenditure and medium to long- term benefits, capacity and expertise to carry out climate risks, opportunities and adaptation assessments, existence of research institutions and partnerships with government and policies, laws and regulations to encourage climate change adaptation”. This study, adding up to the already existing incentives from other related studies have identified attraction from partnerships, projects viability, corporate social responsibility, the challenge that climate change is real and the motivation to do something good. Based on these findings, the study argues for government to provide attractive incentives for the private sector involvement in climate change adaptation. It is clear from the concerns of these private sector companies that, government incentives are not attractive for private sector investment in climate change adaptation. Various studies have elaborated on several challenges faced by the private sector in climate change adaptation. Initial works of PWC (2013), IFC (2013), Masanet-Bantaller (2010), UGNC et al. (2011) Terpstra et al. (2013) and CDKN (2015), identified the followings as challenges of climate change adaptation; information gap, policy gap, lack of financial resources, limited expertise, lack of awareness of both risk and opportunities, lack of capacity, knowledge and skills in the private sector and lack of incentives. This study has also identified some challenges adding to the already above-mentioned. The study interestingly found out some obstacles to climate change adaptation that are rare in literature. Among them were; lack of collaborative effort, financial challenges, lack of recognition and lack of standardisation. These challenges go a long way to affect the decision 76 University of Ghana http://ugspace.ug.edu.gh of the private sector to develop initiatives that will help them to adapt. Key among these concerns raised are the issues of absence of government incentives and clear government policy direction. In view of these challenges, it will be in the interest of government to consider filling in these gaps to allow the private sector invest in adaptation. Regardless of these challenges and more, some private sector companies are seen to be implementing climate change adaptation initiatives and greening their economies whiles others sit back to “wait and see” 77 University of Ghana http://ugspace.ug.edu.gh CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMENDATIONS 5.1. Introduction The study was focused on the private sector led initiatives to climate change adaptation in Ghana with the main objective of advancing towards green economy. This chapter gives a summary of the study, conclusion and also recommendations based on findings from this research. The chapter is structured into four sections. The first section highlights the research problem and methodology adopted for the study. The second presents a summary and evaluation of research objectives and follows with recommendations to government, the private sector organizations themselves and development agencies. The last section concludes and suggests areas for further studies. 5.2. Synopsis of research problem and objectives Even though green economy and climate change adaptation are popular in recent times, most of the private sector has not effectively mainstream adaptation actions in their activities. Although the private sector is aware of the risks and opportunities of climate change to their businesses, (UNGC et al. 2011, Agrawala et al. 2011) many of them are not investing in climate change adaptation or greening their economies. It is evident from literature that some companies have few initiatives that are been rolled out but the issue of sustainability and viability of those initiatives cannot be overemphasised. It is also clear that the impact of climate change in developing countries like Ghana is intense and these impacts pose serious threats to businesses and their communities of operation. Taking steps to adapt gives companies competitive advantage over their counterpart companies. According to MESTI (2010), rain patterns in Ghana have become unpredictable and also temperatures have risen across all ecological zones. Emerging body of literature emphasises 78 University of Ghana http://ugspace.ug.edu.gh private sector investment in climate change mitigation and there is a great disparity in terms of studies that focused on adaptation and green economy specific to the private sector in developing countries and in this case Ghana (Kato et al. 2014). Existing literature has not focused on private sector initiatives, incentives and their challenges in climate change especially the adaptation bit. It was therefore important to contribute to literature by filling the gap. The UNGC et al. (2011) in their report argues that climate change adaptation needs of vulnerable communities are ultimately the responsibility of the public sector through the provision of public finance and also through International, National and Local Initiatives but the role of the private sector cannot be overemphasised. Again, the World Bank’s estimation for developing countries to cater for their immediate and long-term climate adaptation needs is 70 to 100 billion USD per year through 2050. The National Climate Change Policy Initiative’s estimation, however, is that, in the year 2011, only 4.4 billion USD in adaptation finance was apportioned to developing countries. There is therefore a gap from about 65.6 to 95.6 billion USD per year between what developing countries require and what developed nations are contributing. This is why it is important for the private sector to be actively involved in climate change adaptation activities in order to reduce the financial burden on government. The theory adopted for the research was the stakeholder model of corporation which was intended to address the issue of stakeholder involvement in climate change adaptation with emphasis on a collaborative representation for effective climate change adaptation. Mitchell et al. (1997) and Grimble (1998) noted that stakeholders are the actors who have a stake in relation to a specific issue and in this context, climate change adaptation because they may either influence or be affected by it (Freeman, 1984). 79 University of Ghana http://ugspace.ug.edu.gh Another theory adopted was the Rational Actor model. The private sector is seen as a rational actor under the rational actor model which was proposed by neo-realists under the rationality theory (Aniagyei, 2015). By way of achieving the objectives of the research, the qualitative approach was adopted. It helped in providing an understanding of green economy and expressing the underlying initiatives, challenges and incentives for climate change adaptation. It also provided an insight into the problem with private sector and climate change adaptation and also helped to develop ideas for potential qualitative research. Respondents were sampled purposively. This was used to select companies who have been involved in climate change adaptation either directly or indirectly. It helped to carefully select respondents, due to the level of information that was required. The research invited the participation of eight private sector companies in Accra cutting across the mining, manufacturing, financial and oil and gas sectors with four key respondents from each company across these sectors. 5.3. Summary of Research Findings The sector of this chapter presents the summary of finding. The summary is based on each of the objectives. The first sub-section presents a summary of the first objective, the next presents a summary of the second objective and the last sub-section presents the third objective. 5.3.1. The various initiatives by the private sector towards climate change adaptation in Ghana It was revealed by the study that diverse sectors engaged in different kinds of adaptation and green initiatives while others also were not involved at all. However, some initiatives cutting across all the sectors were; corporate social responsibility whereas the remaining initiatives varied across the sectors. Unfortunately, 80% of the initiatives expressed by respondents as 80 University of Ghana http://ugspace.ug.edu.gh adaptation initiatives were in actual fact mitigation measures. This confirms the findings from literature that most private sector focus is on mitigation. It was evident from findings that 90% of the companies engage in CSR activities with an element of adaptation in it. Companies that were unable to specify initiatives or projects they have invested in are currently having CSR projects that have the adaptation bit in it. In line with this finding, Levy (2015) concluded that CSR is not a likely remedy to the crises of climate change. Other initiatives the research identified included green initiatives, award systems, environmental and risk policy and advocacy. With respect to environment and risk policy, findings revealed that about 95% of the private sector does not have a clear-cut policy on climate change adaptation and green economy. However, the few who engage in climate change adaptation and green economy have an environment and risk policy that factors issues of climate change and its adaptation bit into it. It was also evident from findings that, though some companies are unconcerned, others give recognition to its impact and the changing environment. Organisations do not pay much attention to establishing a climate change adaptation policy. Some issues raised by respondents were the fact that, government does not have a clear-cut policy direction which the private sector can draw their policies from. In terms of advocacy, it was revealed that, 60% of the companies advocate for the participation of private sector investment in adaptation. This is done through workshops, seminars and public lectures. Key among these companies was the Association of Ghana Industries. Most of them do not have specific projects but rather using other medium to sensitize the public against the impact of climate change adaptation. 81 University of Ghana http://ugspace.ug.edu.gh On the other hand, about 50% of the companies had specific projects which include waste reduction, reforestation, biodiversity, water stewardship, re-vegetation of buffer zones, crises management, recovery of biogas from waste water treatment etc. Some respondents also revealed that, they engage in activities such as an award system geared towards motivating companies to initiate adaptation projects. Some categories of the award system include; best environmental compliance company, best manufacturing company etc. 5.3.2. The incentives for the private sector initiatives towards climate change adaptation in Ghana. The second objective was to query the available incentives for private sector adaptation investment in Ghana. Findings from this research have revealed several motivating factors for private sector initiatives in climate change adaptation and green economy. Frequent among these factors are the reality of the threats or risks of climate change to their businesses. Almost all companies interviewed were concerned about the risk climate change poses to their business. In view of this, the one common thing that pushes them to initiate climate change adaptation and green economy measures is the risk of climate change on their business. The finding is affirmed by Agrawala et al. (2011) and Kahneman and Tversky (1979) in their “prospect theory” which indicates that decisions can sometimes be made under conditions of risk. It was also revealed by respondents that, investment in climate change adaptation is their corporate social responsibility as it is a feeling of giving back to society. Also, findings indicated opportunities for partnerships as an encouragement for private sector investment in climate change adaptation and green economy. Respondents advocated for more partnerships with government, donor agencies and development partners. 82 University of Ghana http://ugspace.ug.edu.gh Other incentives identified by the respondent included; motivation to do something good, project viability and high cost of production due to climate change impacts. Collectively, respondents have expressed their concern for government to provide attractive incentives for private sector involvement in climate change adaptation. This is in line with the findings of OECD mentioned in the analysis above. 5.3.3. The challenges of private sector-led initiatives in climate change adaptation It is obvious from findings that, in line with (Agrawala et al. 2011; Buchner et al. 2011; Kato et al. 2014; UNFCCC, 2007), there is low participation of private sector in climate change adaptation and green investment. However, the few who invest are faced with a number of challenges. Adding to the already existing challenges identified by the works of PWC (2013), IFC (2013), UGNC et al. (2011) Terpstra et al. (2013) and CDKN (2015), this study has identified some constraints that are rare in literature. These include; financial constraints which most of the respondent see as a major challenge to their investment to climate change and green economy. Issues raised included cost of acquiring license for carrying out some adaptation projects and the absence of tax incentives. This is in line with CDKN (2016) who identified lack of finance as one of the challenges to climate change adaptation. Another challenge identified is the poor knowledge base of climate change adaptation. Findings indicated that most of the companies do not know what climate change adaptation is about and interpreted their mitigation measures to be adaptation initiative. This was confirmed by some respondents as they identified it as one of the challenges to their investment in the study area. Findings further indicated that, about 90% of the companies are not aware what they stand to gain from investing in climate change adaptation hence do not find investing profitable. 83 University of Ghana http://ugspace.ug.edu.gh Another concern raised by respondents is the absence of clear policy from government. This issue cuts across all respondents interviewed and this was expressed with sentiments. According to respondents, the absence of a clear policy direction and vision strategy from government affects their interest to invest. Findings also revealed unattractive government incentives as one of the challenges to private sector investment. Respondents expressed that the absence of government incentives demoralises their desire to do more. The few initiatives they have rolled out has only a business case for their investment. Another challenge was the inadequate collaborative effort from other stakeholders. These challenges influence the decisions of private sector to initiate measures to adapt to climate change adaptation. 5.4. Conclusion The essence of private sector participation in climate change adaptation has been highlighted by researchers and at a number of forums such as conference of parties, Rio+20 conferences among others. The vital issue raised is that all stakeholders must be brought on board to fight climate change issues in Ghana. In order for this to materialize, incentives and policy direction must be available to motivate stakeholder’s participation. The private sector being a key permissive stakeholder is ultimately required for financing and investing in climate change adaptation and green economy. However, only a few private sector companies are fighting for this course. Contributions in the form of financing adaptation projects, initiating green and adaptation measures, award systems, advocacy and so on have been identified with the private sector in this research. Much is expected from the private sector, however the study established that though the private sector is willing to invest in climate change adaptation and green economy, the push factors are not available especially that from government. The study identified a few 84 University of Ghana http://ugspace.ug.edu.gh incentives available for private sector participation in climate change adaptation and these are high cost of production due to climate change risk, the reality of climate change risk, motivation to do something good, project viability among others. It is also worthy to note that, across all the sectors under studied, the absence of a clear-cut policy direction and vision strategy from government which accordingly limits their level of participation in climate change adaptation and green economy was identified as a key challenge. Regardless of some companies’ initiatives, they cannot be recognized as adaptation. Others also mentioned a few corporate social responsibility projects which have an element of adaptation in it. Some other initiatives which respondents presented as adaptation or green initiatives were nothing like it. Irrespective of the fact that private sector adaptation investment is low, the few who invest do not succeed without facing any challenges. The study identified a number of challenges including unattractive government incentives, financial challenges, poor knowledge base, absence of standardization and inadequate collaborative effort. Respondents emphasized the absence of government incentives and financial challenges as key among the challenges listed above. It was established that, there are currently unattractive incentives from government for private sector investment in adaptation. It was further drawn from findings that most of the companies are financially constrained and are unwilling to venture into any activity that will not yield them any profits. It was also revealed that, most of the companies did not understand the need for their investment in climate change adaptation. Some believed that though they stand at a risk, their activities do not have any impact on climate change hence do not think it is necessary for them to invest. Based on these findings the study has come out with a number of 85 University of Ghana http://ugspace.ug.edu.gh recommendations for government in particular to consider in their policy making process and other key stakeholders. 5.5. Recommendations This sub-section provides recommendation for the central government and its institutions and other key stakeholders based on the findings and conclusions of the study. To begin with, it is imperative to get private sector to invest in climate change adaptation. Having met the objectives of this research, certain challenges and concerns raised in the study have been noted and recommendations made.  A major recommendation derived from the study is the call for a collaborative effort among all stakeholders. Both mandatory and permissive stakeholders must come together to agree on how to deal with climate change issues. Just as the stakeholder theory adopted in this research suggests, it is important to work in collaboration in order to achieve a set objective. The risk of climate change is real and the fact that only one stakeholder cannot do it all, it will be more efficient to have all stakeholders come on board to address the issue. Remaining unconcerned and “waiting to see” will not improve the subject.  Even though some private sector companies are doing their best to support government effort to fight climate change in Ghana, the study suggests a more collaborative effort including partnerships will be efficient. It is evident from findings that some companies have partnered with other government agencies and a few other stakeholders in this regard but it requires more effort towards this direction. Partnerships between private sector companies should be encouraged because this will help reduce the financial burden on companies and the government itself.It will be 86 University of Ghana http://ugspace.ug.edu.gh meaningful to have private sector actors partnering and jointly initiating climate change and green projects.  It is further recommended that efforts should be made to enhance climate change education and its adaptation bit. One of the challenges raised was the poor knowledge on climate change issues and adaptation in particular. It is therefore highly recommended that, public education on climate change and green economy should be intensified across all sectors. The importance of private sector engagement in adaptation must be clear to companies. Despite the level of climate change education in the country, most private sector companies are not aware of its implications on their business and the need for their involvement. Measures taken by private sector have been focused on mitigation with limited attention paid to adaptation. It is therefore important for government to enhance adaptation education among the private sector.  Another recommendation based on the findings of the study is the fact that there should be a policy direction and a vision strategy from government. Respondents raised a concern for a clear-cut policy direction from government. The policy environments in which companies operate have influence on their corporate decision. Some policies can explicitly force companies to take adaptation initiatives. A typical example is the UK’s Adaptation Reporting Power. Government should have a clear- cut policy which will guide the private sector to identify areas that require adaptation needs. Some of these policies can serve as an economic incentive for the private sector. As suggested by PWC (2010), the absence of a clear policy direction makes the private sector lay back.  The study also recommends a mechanism for standardisation. As revealed in the findings of the study, there should be a clear standard that will measure projects 87 University of Ghana http://ugspace.ug.edu.gh viability. Government regulatory institutions like the Energy Commission and Ghana Standards Authority must do a quality testing of equipment that are brought into the country to fight climate change e.g. for solar projects. The absence of standardization will result in issues of maladaptation. Some companies may have adaptation initiatives that rather worsens the situation of livelihoods than improve them.  Based on findings from the government in the study, policies and incentives are available for private sector investments in climate change adaptation. However, majority of the private sector are unaware of such policies and incentives. The study therefore recommends that, government should be concerned with information flow and awareness creation. In order to efficiently send information across the private sector, government should go to the extreme to make use of other mediums such as the media to inform the private sector about government incentives towards adaptation. Clear incentives must be instituted by government accompanied with sufficient information sharing to motivate private sector investment in climate change adaptation and green economy.  The last but not least is the issue of funding. Concerns raised suggested that, a financial scheme be set up by development partners, donor agencies and other key stakeholders to implement climate change actions. This will help private sector to get involved in climate change adaptation. The little support from this scheme will enable the private sector to also pledge with the little funds they have to fight climate change in Ghana. As the sector has raised issues like financial constraints, it will be of great benefit to have such a scheme to support private sector efforts. 5.6. Areas for further studies The topic could explore communities that are challenged with climate change due to the impact of activities of businesses within their communities. It could further look into the 88 University of Ghana http://ugspace.ug.edu.gh various initiatives within communities and their viability. The research due to limited time could not cover all sectors. 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Adapting to Climate Change: The Private Sector Role. 102 University of Ghana http://ugspace.ug.edu.gh Zahari, R. K. (2007). Urban Environmental Hazards: A Case Study of Flood Hazards in Kuala Lumpur, Malaysia. Unpublished PHD Thesis Submitted to the University of Nottingham. Zikmund W. G., (2003). Business Research Methods, 7thedition. Thompson/South-Western. 103 University of Ghana http://ugspace.ug.edu.gh APPENDIX INTERVIEW GUIDE Date of Interview: ……………………………. Interviewee Information Gender: Male/Female Name of Organization: .................................................. Job title: ……………………………………………....... Purpose of the Study The main purpose of the study is to assess the private sector led climate change adaptation initiatives in Ghana towards green economy. This research is in partial fulfilment of a Master of Philosophy degree in Public Administration at University of Ghana Business School. Being a purely academic exercise, the research is not intended to probe your organization nor people’s private lives, neither is it intended to collect any information for government or any of its agencies. It is an independent academic research designed and executed by the researcher. Any information provided shall be treated with strict confidentiality. Thanks for your cooperation. Interview Guiding Questions 1. What adaptation strategies and initiatives are used by the private sector to deal with the consequences of climate change? a) Does your organization get actively involved in climate change adaptation? b) Do you have climate change adaptation initiatives and strategies you are implementing or have implemented? c) Which areas are these initiatives being implemented? d) Kindly describe them. e) How do you sustain the initiative being implemented? f) What impact does the initiative make within the community of operation and on your business? 104 University of Ghana http://ugspace.ug.edu.gh g) How does your initiative influence green economy? 2. Are there incentives for private sector involvement in climate change adaptation by the government? a) If yes, what are some of these policy incentives? b) What incentivise you to implement these initiatives? c) Are the incentives attractive for private sector investment in adaptation? d) What other incentives do you hope to get? 3. What are the challenges of the private sector led initiatives in climate change adaptation in Ghana? a) What are some of the challenges that your organisation face in implementing adaptation initiative? b) How can these challenges be addressed? 105 University of Ghana http://ugspace.ug.edu.gh INTERVIEW GUIDE Date of Interview: ……………………………. Interviewee Information Gender: Male/Female Name of Organization: .................................................. Job title: ……………………………………………....... Purpose of the Study This interview guide is purposed to collect data from policy makers and implementers on the available government incentives for private sector led climate change adaptation initiatives in Ghana. This research is in partial fulfilment of a Master of Philosophy degree in Public Administration at University of Ghana Business School. Being a purely academic exercise, the research is not intended to probe your organization nor people’s private lives, neither is it intended to collect any information for the private sector. It is an independent academic research designed and executed by the researcher. Any information provided shall be treated with strict confidentiality. Thanks for your cooperation. Interview Guiding Questions 4. How do you see private sector participation in climate change in Ghana? 5. As government, do you recognise the private sector as partners in climate change mitigation and adaptation? (in terms of finance, technology and capacity building) 6. Do you engage the private sector in the formulation of climate change policies? 7. Are there incentives for private sector involvement in climate change by the government? (Policy makers) e) Do you have specific incentives for private sector investment in climate change  Mitigation  Adaptation? Kindly mention them f) Is the private sector aware of these incentives? 106 University of Ghana http://ugspace.ug.edu.gh g) If they are aware, do you think the incentives from government are attractive for private sector investment in adaptation? 8. Are there incentives for the private sector led initiatives in climate change adaptation in Ghana? (Policy Implementers) c) How do you effectively implement these policies? d) Do you think those policy incentives are attractive to the private sector? 107 University of Ghana http://ugspace.ug.edu.gh Field Photos of some projects by the private sector 108 University of Ghana http://ugspace.ug.edu.gh Source: Ecobank Ghana Limited 109