Public-Private Partnerships for Climate Finance

image of Public-Private Partnerships for Climate Finance

There is strong evidence showing the urgent need for scaling-up climate finance to mitigate greenhouse gases in line with the 2°C target, and to support adaptation to safeguard the international community from the consequences of a changing climate. While public actors have a responsibility to deploy climate finance, it is clear that the contribution from the private sector needs to be significant. Consequently, a strong public commitment is needed to engage with the private sector and ensure climate finance is leveraged and deployed effectively. In this context, Public Private Partnerships (PPPs) are a promising avenue to contribute to climate finance delivery. PPPs provide frameworks to ensure public leadership and accountability in tackling climate change, while enabling the ownership of certain components of climate finance to be transferred to private hands.



Case studies and stakeholder dialogue

The traditional way of procuring public services and infrastructures though fiscal budgets is increasingly becoming unviable particularly in developing economies. Consequently, governments across the world are exploring the use of PPPs to deliver infrastructure and other services and are looking to leverage private finance. The rationale for their use is two-fold: the need to buffer public finance with private sector investments, combined with the possibility to enhance innovation and efficiencies in service provision.


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