What is a public-private partnership?

The strongest public-private partnerships (PPPs) bring the best of both sectors together. Government is uniquely positioned to design solutions that serve the public good and can tap into private sector innovation and financing to drive impactful climate action. What is a public-private partnership? A public-private partnership is a long-term agreement between a government and a private entity to deliver a public project or service. PPPs maintain public sector oversight while leveraging private sector resources and expertise. Beyond financial investment, PPPs can also bring innovation and efficiency to climate solutions. Why use a public-private partnership for a climate action project? Private sector involvement can lead to more efficient service delivery, faster project completion and greater scalability, particularly for climate-resilient infrastructure. Why should public servants understand PPPs? Government leaders and their teams play a crucial role in structuring and managing PPPs. Effective PPP management requires understanding how best to share risk, ensuring accountability and maintaining strong governance. Challenges in developing climate-focused PPPs Climate-related PPPs face unique hurdles, including evolving climate risks, project complexity and the need to balance public benefit with financial viability. Measuring long-term climate impact and ensuring stakeholder alignment adds further challenges. Key skills for developing PPPs Legal and financial structuring – Navigating contracts, financing models, and regulatory frameworks. Project and risk management – Overseeing execution while balancing risk between public and private partners. Stakeholder coordination – Aligning government, business, and community interests. Negotiation and consensus-building – Structuring agreements that meet public and private sector priorities. Sector-specific technical expertise – Ensuring sustainable outcomes through knowledge of climate resilience, infrastructure, and engineering.