Race to Resilience in action: The SMEs and subnational governments leading on climate resilience

Partner: Regions4

Location & Region: Latin America, Europe, Africa, and North America

Implementers: Regional Governments, SMEs, and private sector partners

SAA Impact System: Nature & Finance

Impact: 10,000 hectares of land restored, 500,000 hectares of preserved land mapped, 35% tax deductions for green economy investments, €100 million (US$107m) credit facility secured for SMEs, CAD 5 million (US$3.65) mobilized to accelerate cleantech startups, ₦1 billion (US$670,000) matching fund to boost SMEs

From farms to factories, climate extremes are increasingly disrupting the systems that sustain daily lives. Regional governments are on the frontline of these risks, but they rarely have the capacity to respond at the scale required. The private sector, especially small and medium enterprises (SMEs), could play a catalytic role in meeting this challenge, providing many of the practical levers for adaptation, from managing supply chains and restoring land, to creating jobs that can withstand climate pressures.

The case for investment is compelling – a recent WRI study showed that every US$1 invested in adaptation yields more than US$10 in benefits. Despite this, adaptation projects are still too often treated as high-risk and low-return, leaving critical areas such as ecosystem services, resilient infrastructure, and water management chronically underfunded. The result is weakened resilience and missed opportunities for innovation and finance.

To strengthen the role of the private sector in climate adaptation at the subnational level, RegionsAdapt, coordinated by Race to Resilience partner Regions4, have produced a Brief for Action. The report, published in August 2025, outlines how local and regional governments can create the enabling conditions for businesses to co-design, co-finance, and co-implement adaptation measures.

The good news is that this is already starting to happen. Around the world, private sector actors are stepping up and collaborating with regional governments, restoring ecosystems, securing water supplies, driving circular economy innovation, and opening up finance for SMEs.

Restoring ecosystems and protecting water

In Brazil’s Goiás state, the Juntos Pelo Araguaia project is restoring 10,000 hectares of degraded land through public-private collaboration, reviving springs and soils critical for water security. In the Mata Atlântica region, the Conexão Mata Atlântica initiative has gone further, creating a payment for ecosystem services scheme that rewards farmers for restoring native forest, aligning livelihoods with conservation. And in Minas Gerais, Brazil, the AGRO + VERDE project is mapping over 500,000 hectares of preserved land with support from FIEMG, creating new pathways for sustainable land use.

Innovation and circular economy

Beyond nature restoration, regional governments are also enabling business-led innovation. In Lombardy, Italy, SMEs receive grants to adopt circular economy practices and employ energy managers, while in the Basque Country, a pioneering Ecodesign Center brings companies together on a shared digital platform to track and improve their environmental performance. In South Australia, partnerships are advancing regenerative agriculture, climate-resilient aquaculture, and even methane-reducing seaweed to cut livestock emissions.

Policy and enabling environments

In Jalisco, Mexico, the tequila industry has joined the government’s Business Alliance for Climate to promote sustainable agave farming.

Scotland’s Adaptation Scotland Programme provides resilience planning tools to SMEs, helping them anticipate climate risks. In Paraná, Brazil, the Selo Clima certification scheme now counts nearly 500 organizations committed to climate action, while the Basque Country’s Clean Technology List offers companies tax deductions of up to 35% for investing in green technology.

Unlocking finance for SMEs

Access to finance is emerging as another frontier. Scotland’s Facility for Investment Ready Nature (FIRNS) is preparing projects that can attract investors, while Catalonia has secured a €100 million (US$107m) loan from the European Investment Bank for green SMEs. Lombardy is piloting new ESG-based financing with Finlombarda S.p.A., tailoring 26 actions to align with sustainable practices. In Québec, Canada, the Origo programme has mobilized CAD 5 million (US$3.65m) to accelerate cleantech startups. And in Cross River State, Nigeria, a ₦1 billion (US$670,000) matching fund with SMEDAN is boosting micro, small, and medium enterprises, with a strong focus on women- and youth-led businesses.

Already, nearly one in five adaptation actions reported by RegionsAdapt members involve these kind of partnerships, delivering benefits that range from restored ecosystems to new financial and institutional models that can be scaled elsewhere.

RegionsAdapt foresees adaptation fully embedded in regional planning, with private capital complementing public resources. By 2030, many more regions are expected to mainstream these partnerships, strengthening communities, restoring ecosystems, and ensuring adaptation finance flows to projects that deliver both social and environmental impact.

Learn more about Regions4 and view the original article here.

Race to Resilience

The Race to Resilience is a global campaign working to strengthen the resilience of four billion people to climate risk by 2030. It achieves this through a network of partners supporting locally led work across key areas, including health, food, water, and livelihoods.

Discover the Race to Resilience.