In the first blog In this series, we explored how the seeds of a new era of public-private co-creation have begun to emerge, with examples of the public and private sectors working together to solve problems, innovate and achieve goals. the whole of society transformation. But also that to evolve these emerging forms of public-private co-creation, we must deliberately build a new form of collaborative architecture.

Recent reports on G20 Task Force on Global Mobilization Against Climate Change (TF-CLIMA) and the United Kingdom Transition Finance Market ReviewThe importance of collaboration and a more effective national architecture to bring together government, business, finance and civil society to achieve the transition were reiterated.

Currently, there is a lack of analysis on the most effective models and approaches to make this work. This year, the WBCSD Policy, Advocacy and Member Mobilization team worked with BRAE explore the essential conditions and roles to enable public-private co-creation at the national level. Our process began with a period of rigorous discovery aimed at deepening our understanding of the successes and failures of public-private collaborations. We spoke to more than 60 leading practitioners based on six continents through individual interviews and group dialogues.

We cast a wide net, engaging investors, business leaders, innovators, civil servants, consultants, researchers, donors, development banks and program managers, both in the development field sustainable but also in contexts such as health, technology, infrastructure and international development. We spoke with them to learn more about their experiences with public-private collaborations and the key factors for success and failure. Additionally, we conducted an in-depth literature review and identified over 30 case studies.

We have heard that more effective and structured public-private co-creation is essential to address complex and pressing sustainability challenges, with four distinct characteristics emerging as critical to success: It must connect planning ecosystems of the transition of companies and nationals, it must be facilitated by a dedicated intermediary, it must be protected from political and financial turbulence and sufficiently agile to adapt to local contexts.

Connecting business and country transition planning ecosystems

Our research clearly highlights the need for a normative architecture for public-private co-creation that connects corporate and country transition planning ecosystems. Business transition planning is gaining momentum, encouraged by both regulators and investors, and supported by new frameworks and guidance such as that of the UK Transition Plan Taskforce. At the same time, calls are growing louder for governments to take advantage of the next round of nationally determined contributions (NDCs) in 2025 to raise their ambitions and grow their economies. investable national action plans.

Some countries are already moving in this direction, by establishing the constituent elements of strategic and investable national climate plans. Examples include Japan’s sector trajectories and the New Zealand External Reporting Board’s sector-level scenario analysis. Elsewhere, national platforms are emerging, notably the recently launched platform Investment platform for climate and ecological transformation in Brazil. National transition plans have the potential to translate NDCs and long-term strategies into robust sector plans and policies, aligning national and business plans and accelerating the transition. the entire economy transition.

However, we have heard that many functions essential to connecting business and country transition planning ecosystems are missing. Structural aspects such as reporting frameworks, technology roadmaps and even investment platforms are emerging, but need to become more common. But the underlying elements that lead to positive change – such as shared networks, problem-solving, strategy and deal-making – are rare.

These components behave like “connective tissue” to align the public and private sectors on missions and unleash the power of different actors. They are fundamental and often underestimated elements of a complex, well-functioning system. Without them, opportunities for joint problem solving and shared access to innovation, knowledge and finance will be missed.

Our research highlights that government commitment is essential to the success of public-private collaborations, but that in many cases establishing a dedicated intermediary helps manage the particular interests of all parties and maintain collective focus and momentum toward achieving shared outcomes.

A dedicated intermediary can work closely with the government to engage and bring together different stakeholder groups, including business and finance, providing a neutral space for problem resolution. However, government support is essential to secure a high-level political mandate that will guide collaboration, such as one or more economy-wide or sector-specific decarbonization targets, or to create the right conditions for investment.

As an example, the Danish Climate Partnerships was launched by the government of Denmark, but it is administered by the non-governmental organization State of Green. It is an apolitical platform that brings together and works with different government ministries, businesses and financial institutions in Denmark, increasing transparency and the flow of information between different stakeholder groups.

Over five years, the 14 different public-private partnerships have developed more than 400 policy recommendations, combined with action priorities for business and finance, to reduce greenhouse gas emissions in Denmark by 70 percent. by 2030 and accelerate the country’s transition to a sustainable, low-emission environment. -a carbon and resource-efficient society. A number of policy recommendations developed by the partnerships are currently being drafted into legislation in the Danish Parliament.

Sheltered from political and financial turbulence

Many of the practitioners we engaged during the discovery period were keen to emphasize that public-private co-creation is most effective when: saved political, financial and organizational turbulence. Short-term political and budget cycles can create turbulence and often undermine collaborative efforts, or threaten the very existence of the efforts themselves.

This is particularly important when actors commit significant sums to transition investments – that is, those that have long-term results. In these cases, trust is essential. It is easily compromised by a lack of political and budgetary certainty and by divergent priorities.

As an example, A Sweden without fossils is a public-private program launched by the government to develop industry-led roadmaps, with the aim of making Sweden one of the world’s first fossil-free countries. Since 2015, the program has been coordinated by a national office headed by a national coordinator. The national coordinator is responsible for facilitating dialogue between businesses in 22 sectors with the government.

This established mechanism has helped ensure that the collaboration remains free from political turbulence, particularly in the aftermath of the 2022 Swedish elections, when the political party that created Fossil Free Sweden lost power.

Adapted to local contexts

Around the world, different countries have different priorities, transition pathways, economic contexts and political economies. These varying conditions require different approaches to public-private collaboration, depending on the local context. This means that a deep understanding of the local context and extended networks within countries is essential for effective public-private co-creation.

It is clear that there is no universal solution. This new form of collaborative architecture must be based on a set of processes and tools that can be applied and adapted to local contexts as needed.

A normative architecture is necessary to enable action

Throughout the discovery process, we have summarized large amounts of research and information on different forms of public-private co-creation. However, research and analysis do not equal action. In interviews, we heard repeatedly that even organizations with a deep understanding of the context and needs (e.g. development banks, UN agencies) often do not have the capacity and do not are not equipped to act.

It is now widely accepted that achieving the goals of the Paris Agreement will require a fundamental transformation of the entire economy. But this will not happen at the scale and pace required without a well-directed system-wide response. We urgently need to bring government, business, finance and society together. And we must do so, guided by a clear national strategic ambition and supported by structured arrangements for reliable, inclusive, locally-responsive and mission-driven collaboration and co-creation.

Mark Manning, Visiting Senior Fellow, Center for Economic Transition Expertise, Grantham Research Institute, London School of Economics and Political Science and Co-Chair of the Disclosure Framework Workstream, Transition Plan Taskforce (UK).

We must act quickly to address the complex challenges of global sustainable development. To do this, we must deliberately build a new collaborative architecture that will enable business, government, finance and civil society to work together on shared missions that will enable co-investment to accelerate the transition. Our research shows that this architecture must be supported by a set of skills and tools, applied by facilitators, strategists, designers and negotiators.

In the next blog in this series, we will share our emerging thoughts on the design of this new collaborative architecture and how it could work to help governments, businesses, financial institutions and civil society groups work together to provide solutions that overcome some of the problems. the biggest obstacles to sustainable transition during this decade.