In an era defined by accelerating climate change and the global imperative for decarbonization, effectively managing Climate-Related Physical and Transition Risks in PPPs has become an indispensable competency for governments and private sector partners engaged in long-term infrastructure and public service projects. Physical risks, stemming from extreme weather events, sea-level rise, and chronic climate shifts, directly threaten asset integrity and operational continuity, while transition risks, driven by evolving climate policies, technological disruptions, and market shifts towards a low-carbon economy, can fundamentally alter project economics and investor appetite. This comprehensive training course is meticulously designed to equip public sector officials, project developers, financial institutions, legal professionals, and risk managers with the advanced knowledge and practical strategies required to identify, assess, allocate, mitigate, and adapt to both physical and transition climate risks throughout the entire PPP lifecycle, ensuring project resilience, financial viability, and alignment with global sustainability goals. Without robust expertise in Climate-Related Physical and Transition Risks in PPPs, stakeholders risk stranded assets, unforeseen liabilities, and a failure to build climate-resilient infrastructure, underscoring the vital need for specialized expertise in this critical domain.

Duration: 10 Days

Target Audience

• Public Sector Officials from Ministries of Finance, Environment, Infrastructure, and PPP Units
• Private Sector Project Developers and Sponsors
• Financial Institutions and Lenders (including MDBs and DFIs)
• Legal Professionals specializing in climate law and project finance
• Environmental and Social Impact Assessment (ESIA) Specialists
• Risk Managers and ESG Analysts
• Infrastructure Planners and Policymakers
• Climate Adaptation and Resilience Specialists
• Consultants advising on sustainable infrastructure and PPPs
• Anyone involved in the planning, financing, or management of long-term infrastructure projects.

Objectives

• Understand the fundamental concepts of climate-related physical and transition risks.
• Learn about the specific manifestations of physical risks (e.g., extreme weather, sea level rise) in infrastructure.
• Acquire skills in identifying and assessing physical climate vulnerabilities in PPP projects.
• Comprehend techniques for analyzing transition risks (e.g., policy, technology, market) for PPPs.
• Explore strategies for integrating climate risk assessment into PPP feasibility and due diligence.
• Understand the importance of climate-resilient design and adaptation measures in PPPs.
• Gain insights into contractual mechanisms for allocating climate risks between parties.
• Develop a practical understanding of green and climate finance for de-risking PPPs.
• Master climate-related disclosure and reporting frameworks (e.g., TCFD).
• Acquire skills in valuing climate risks and opportunities in financial models.
• Learn to apply international best practices and guidelines for climate-resilient PPPs.
• Comprehend techniques for engaging stakeholders on climate risk and adaptation.
• Explore strategies for leveraging nature-based solutions in climate-resilient PPPs.
• Understand the importance of long-term planning and adaptive management for climate change.
• Develop the ability to lead and implement climate-smart PPPs.

Course Content

Module 1: Introduction to Climate Risks in PPPs

• Defining climate change and its relevance to infrastructure.
• Distinguishing between physical risks and transition risks.
• The urgency of addressing climate risks in long-term PPPs.
• Impact of climate risks on project viability, bankability, and value for money.
• Overview of global frameworks (e.g., Paris Agreement, SDGs) and their implications for PPPs.

Module 2: Understanding Physical Climate Risks

• Acute physical risks: extreme weather events (floods, storms, heatwaves, wildfires).
• Chronic physical risks: sea-level rise, chronic heat stress, water scarcity, ecosystem changes.
• Impact of physical risks on infrastructure assets (damage, disruption, reduced lifespan).
• Regional and localized manifestations of physical climate risks.
• Data sources and climate models for assessing physical risks.

Module 3: Assessing Physical Climate Vulnerabilities in PPPs

• Methodologies for vulnerability assessment (e.g., climate risk screening tools, stress testing).
• Identifying critical assets and systems exposed to physical risks.
• Analyzing interdependencies and cascading impacts.
• Quantifying potential physical damages and operational disruptions.
• Role of climate science and engineering expertise.

Module 4: Climate Adaptation and Resilience Strategies for PPPs

• Principles of climate-resilient design and engineering.
• Hard infrastructure solutions (e.g., sea walls, elevated structures, drainage systems).
• Soft infrastructure solutions and nature-based solutions (e.g., mangroves, wetlands).
• Operational adaptation measures (e.g., early warning systems, emergency response).
• Integrating adaptation into project planning and specifications.

Module 5: Understanding Transition Climate Risks

• Policy and legal risks: carbon pricing, stricter emissions standards, climate litigation.
• Technology risks: disruption from low-carbon alternatives, obsolescence of high-carbon assets.
• Market risks: shifts in consumer preferences, changes in supply chains, green finance trends.
• Reputational risks: public perception, stakeholder pressure, "greenwashing" accusations.
• Socio-economic risks: job losses in carbon-intensive sectors, energy price volatility.

Module 6: Assessing Transition Risk Exposure for PPPs

• Analyzing policy landscapes and regulatory changes impacting project economics.
• Evaluating technological advancements and their potential to disrupt existing models.
• Assessing market shifts and investor sentiment towards carbon-intensive assets.
• Identifying reputational vulnerabilities.
• Scenario analysis for different transition pathways (e.g., 1.5°C vs. 2°C scenarios).

Module 7: Climate Risk Allocation in PPP Contracts

• Principles of allocating climate risks (to the party best able to manage or absorb).
• Contractual provisions for physical climate risks (e.g., force majeure, change in law, compensation).
• Contractual provisions for transition risks (e.g., policy change clauses, technology clauses).
• Balancing risk transfer with affordability and bankability.
• Role of government support for climate-related risks.

Module 8: Climate Finance and Green/Resilience Bonds for PPPs

• Mobilizing finance for climate-resilient and low-carbon PPPs.
• Green bonds, climate bonds, and resilience bonds.
• Role of MDBs and DFIs in providing concessional climate finance.
• Blended finance mechanisms for climate-smart PPPs.
• Accessing climate funds (e.g., Green Climate Fund).

Module 9: Valuing Climate Risks and Opportunities in Financial Models

• Integrating climate risk parameters into financial models.
• Stress testing project cash flows under various climate scenarios.
• Quantifying the cost of physical damages and adaptation measures.
• Assessing the financial impact of transition risks (e.g., carbon costs, revenue shifts).
• Valuing climate-related opportunities (e.g., green premiums, new revenue streams).

Module 10: Climate-Related Disclosure and Reporting for PPPs

• Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
• Integrating climate risk information into project documentation and financial statements.
• ESG reporting frameworks for climate performance.
• Transparency and accountability in climate risk disclosure.
• Role of independent verification for climate-related claims.

Module 11: Nature-Based Solutions (NBS) in Climate-Resilient PPPs

• Definition and benefits of nature-based solutions for climate adaptation and mitigation.
• Examples of NBS in infrastructure (e.g., green infrastructure, ecological restoration).
• Financing mechanisms for NBS through PPPs.
• Challenges and opportunities in implementing NBS in PPPs.
• Case studies of successful NBS integration.

Module 12: Long-Term Planning and Adaptive Management for Climate Change

• Incorporating climate change projections into long-term infrastructure planning.
• Adaptive management frameworks for evolving climate risks.
• Flexibility clauses in PPP contracts to allow for future adaptation.
• Monitoring climate indicators and project performance.
• Learning from experience and continuous improvement.

Module 13: Stakeholder Engagement on Climate Risk and Adaptation

• Identifying and engaging diverse stakeholders on climate issues.
• Communicating climate risks and adaptation strategies to communities.
• Building consensus and public support for climate-resilient projects.
• Addressing equity and social justice considerations in climate adaptation.
• Role of public awareness campaigns.

Module 14: International Best Practices and Policy Frameworks

• Review of national climate change policies and adaptation plans.
• Guidelines from international organizations (e.g., World Bank, EBRD, GCF) on climate-resilient PPPs.
• Comparative analysis of climate risk management approaches in different regions.
• Lessons learned from global efforts to integrate climate into infrastructure.
• Emerging policy trends and their implications for PPPs.

Module 15: Case Studies and Practical Climate Risk Workshop

• In-depth analysis of specific PPP projects impacted by physical or transition climate risks.
• Discussion of successful and unsuccessful climate risk mitigation and adaptation strategies.
• Practical exercise: Conducting a preliminary climate risk assessment for a hypothetical PPP project.
• Workshop: Developing a climate-resilient design concept and associated risk allocation.
• Group discussions on future challenges and opportunities for climate-smart PPPs.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.