New innovations in technology and business practices are critical for solving climate issues. They are also vital for improving the lives of people living in poverty. Solutions for these problems are intrinsically related and the need for innovating sustainable solutions is urgent.
Existing technologies, such as energy systems, are often designed for the developed world. New innovations can be designed from scratch for people living in low-income countries. It is a great challenge to make energy accessible for poor people, who in turn can get an income opportunity.
There is a need for open innovation platforms that can reduce energy consumption and for information services to utilise existing resources better.
On an infrastructure level, innovations such as smart grids, smart buildings and low carbon power suppliers can play a great part in combating climate change. There is also a growing need for innovations in the field of access to water and sanitation.
During the past decade, consumers in low-income markets went from having no digital communications whatsoever, to first using mobile phones, and today using m-banking, e-learning and information services such as weather information, classified ads and auctions sites.
There is an untapped opportunity for businesses in addressing low-income markets and designing products and services that meet the needs of the consumers and communities in these markets. The challenge is to recognise poor people not only as consumers but also as co-producers. This mind shift in recognizing the millions living in poverty as actors, consumers and producers – opens up for mutual benefits – both from Sida’s poverty reduction perspective, as well as from a commercial perspective.
Considering the challenges of combating climate change and poverty - we need to act fast to find new ways of collaboration between the different stakeholders (businesses, institutions and NGOs). Sida is now introducing a Business for Development programme to find new ways of collaborating with the private sector in order to mobilise resources and capacity to help reach poverty reduction and sustainability goals.
One part of the Business for Development program is to develop a Toolbox for these tasks. At Globe Forum, Sida is introducing one of the tools - Innovations Against Poverty - a programme designed to support innovative companies in developing the products, services and business models that can contribute to solve climate and poverty issues.
With this – Sida also is taking the step from viewing the private sector as distributors of aid to having them as partners who plays an important role in contributing to development goals. Collaborating in new ways can contribute to reach Sidas goals more effectively.
