Public-private partnerships for climate finance

Public-private partnerships for climate finance

Implementing the Paris climate agreement and the transition to a low carbon economy require adequate finance. Public finance plays a key role - whereas private finance is essential in developing and implementing new and innovative solutions. The Nordic countries are committed to further develop financial instruments and structures that can scale up such investments.

This report discusses the role of the public-private partnerships (PPPs) in scaling-up climate finance and how such partnerships should be designed to best fulfil this task. 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. The report proposes eight recommendations for climate negotiations and effective climate finance, and looks at some good case studies of PPPs worldwide.

Recommendations:

  • PPPs should play a role in climate finance and support both mitigation and adaptation activities
  • for PPPs to play a role, public authorities should develop enabling frameworks to support climate finance PPPs
  • design of a PPP through a process of co-creation and early involvement of private financial institutions should be aimed for
  • mobility programs of staff between public and private financial institutions can be used to improve mutual understanding and communication
  • public financial institutions could support risk-taking initiatives to enlarge the scope of bankable projects
  • developed countries should support the emergence of PPPs in developing countries
  • robust stakeholder consultation processes should be established and implemented
  • systematic evaluation of implemented climate finance PPPs should be encouraged
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