The document summarizes the International Trade Centre's (ITC) project to build climate resilient value chains in Morocco and Kenya. The project uses a Climate Expert Tool to help small and medium enterprises (SMEs) identify climate risks, develop adaptation strategies, and conduct cost-benefit analyses of adaptation measures. The tool is applied along international value chains with various stakeholders, including producers, processors, buyers, and trade support institutions. The project aims to help SMEs seize business opportunities from adaptation while managing climate risks. Key lessons include tailoring the approach to sector needs, involving multiple stakeholders, improving climate data, addressing gaps in trade support services, demonstrating the business case for adaptation, and promoting relevant standards.

1. Building Climate Resilient Value Chains
Session 10 – Enabling Factors, Part IV, Capacity Building
Peer Learning Summit, Rotterdam, July 9-11 2019
Delphine Clement, ITC
Philippe Alléau, Consultant ITC

2. Who is ITC?
2

3. Our project in Morocco and Kenya

4. Climate Expert Tool
CC
impacts
Identification of climate change phenomena and their
impacts
1
CC
adaptation
measures
Identifying and planning
adaptation measures
3
Cost-
benefit
analysis
CC risks and
opportunities
Assessing climate change risks and
opportunities
2
CC
adaptation
strategy
Developing an
adaptation strategy
4

5. 5Risk assessment
Probability: How
likely is it that the
negative business
effect will occur?
Magnitude: How
extensive is the
expected business
effect when it
occurs?
Risk
(likelihood *
magnitude
of negative
business
effect)
#
Climate impact Negative business effect Description
Timeframe
considered
P M R Prio Notes and comments
1
2
3
4
5
6
7
RESULTS
of the
Cost-
Benefit
Analysis
Currency 0
Discount Rate 3%
Risk 0
Adaptation measure 0
Year
Discount
Factor
Discounted total costs per year Discounted total benefits per year
From To Average From To Average
Now (0) 1.00 0.00 0.00 0.00 0.00 0.00 0.00
1 0.97 0.00 0.00 0.00 0.00 0.00 0.00
2 0.94 0.00 0.00 0.00 0.00 0.00 0.00
3 0.92 0.00 0.00 0.00 0.00 0.00 0.00
4 0.89 0.00 0.00 0.00 0.00 0.00 0.00
5 0.86 0.00 0.00 0.00 0.00 0.00 0.00
6 0.84 0.00 0.00 0.00 0.00 0.00 0.00 From To Average
7 0.81 0.00 0.00 0.00 0.00 0.00 0.00 Net Present Value (NPV): - - -
8 0.79 0.00 0.00 0.00 0.00 0.00 0.00 Cost-Benefit-Ratio (CBR) #DIV/0! #DIV/0! #DIV/0!
9 0.77 0.00 0.00 0.00 0.00 0.00 0.00 Internal Rate of Return (IRR): #NUM! #NUM! #NUM!
10 0.74 0.00 0.00 0.00 0.00 0.00 0.00 Return on Investment (RoI): #DIV/0! #DIV/0! #DIV/0!
Sum over years: 0.00 0.00 0.00 0.00 0.00 0.00 Payback Time (in years) 1 1 1

6. 6
New
products
and
services
Analysis of
risks and
opportunities
Directs
risks
Indirects
risks
Company
growth
Business
continuity
BUSINESS OPPORTUNITIES:
Create new products & services
COMPETITIVE ADVANTAGE:
• Increase efficiency
• Anticipate regulations
• Improve reputation
• Benefit from new financing
Manage RISKS:
• Be more resilient to current and
impacts and avoid potential future
costs
Adapting is managing risks and seizing
opportunities

7. Project works along International value chain & business ecosystem
Producers
SME
processors
Local
subsidiary of
buyer
International
buyer
Combined project approach

8. Project work with SMEs and TISIs
• Beneficiary SMEs:
• An online self-evaluation on how prepared they are for climate
change risks (hosted on www.sustainabilitymap.org)
• Online training on the Climate expert approach
• Face-to-face coaching with a trained industry expert on creating
an adaptation strategy incl. bankeable measures (in presence of
other value chain actors)
• Trade and Investment Support Institutions (TISIs):
• Training of trainers on the Climate Expert Approach to further
implement the approach beyond the duration of the project
• Advisory services on integrating the Climate Expert Approach
into the offering of the collaborating TISIs
8
Combined project approach

9. Lessons learnt
9
1. Adapt approach to value chain needs - sensitization to CC depends a lot
on sector – agriculture vs. manufacturing
2. Involvement of a variety of stakeholders – international buyers and
suppliers
3. Data availability - integrate climate information and forecast in business
strategies and early warning systems for companies
4. Fill the gap in the offerings of TISIs (Trade and Investment Support
Institutions)
5. Make the business case for climate adaptation - explore innovative
solutions for investment in resilience and green finance
6. Greater promotion of standards and certification that promote CCA