How collaboration and partnerships can maximise decarbonisation

The impact of using a place-based approach to net zero can be amplified and gain improved access to funding through partnerships and collaboration. Mott MacDonald fellow and global cities lead Clare Wildfire explores how to use this approach and provides an update of the case put forward by the Net Zero Infrastructure Industry Coalition’s (NZIIC) A place-based approach to net zero report.

No city or region can achieve net zero in isolation. The scale and complexity of the climate challenge demands collaboration across public, private and community sectors. Partnerships are the backbone of successful place-based net zero strategies, enabling cities to pool resources, share risk and drive innovation. The UK has seen a surge in innovative funding models, joint ventures and cross-sector alliances that are accelerating the transition to a low carbon future.

The power of collaboration

The cost of decarbonising UK cities is immense, with estimates ranging from £1trillion to £2trillion. Public sector funds alone are insufficient, making collaboration with private investors, technical experts and community organisations essential.

The Cities Climate Investment Commission (3Ci), for example, has pioneered approaches such as pooling, bundling and blending projects. These are powerful strategies that help cities unlock investment for net zero projects.

Pooling combines multiple smaller projects into a single larger opportunity big enough to attract institutional investors who typically look for scale. Bundling takes less enticing investments like energy efficiency upgrades and pairs them with higher-return interventions such as renewable energy, creating a more compelling overall package. Finally, blending steps in to bridge the remaining “investability gap” by using limited public funds to de-risk projects and leverage private capital for maximum impact.

These strategies are enabling cities to overcome traditional barriers to investment, such as fragmented projects, uncertain returns and high perceived risk. They are also a key part of driving costs down, standardising delivery and building long term supply chains.

Partnerships in practice

Bristol City Council’s City Leap partnership is a standout example of what can be achieved through collaboration. In 2023, Bristol entered a 20-year partnership with Ameresco, which is a cleantech integrator and renewable energy asset developer, owner and operator, aiming to deliver nearly £500M of low carbon energy infrastructure. The partnership is driving energy efficiency in homes, expanding renewables and supporting community initiatives. Notably, the City Leap community energy fund has delivered over £300,000 in grants to grassroots projects, such as retrofitting volunteer spaces and creating a zero carbon school.

This model demonstrates how, by making long term commitments, cities can leverage partnerships to achieve ambitious climate goals, while also delivering social and economic benefits.

Another example is Coventry City Council’s 15-year partnership with E.ON which includes solar projects, building decarbonisation and energy efficiency among other areas. The partnership is exploring innovative approaches, such as using drone-mounted thermal cameras to identify neighbourhoods most in need of energy efficiency measures. By working closely with a committed private sector partner, Coventry is able to deliver large scale projects that would be difficult to achieve alone, while also supporting decarbonisation projects without using its own capital and having access to specialist expertise.

The Aire Resilience Company (ARC) in Leeds is another notable case study of a climate partnership, although this time focused on resilience. ARC was created through collaboration between Leeds City Council, Yorkshire Water, the Environment Agency and the Rivers Trust to support the nature-based flood protection that was a key part of hard engineering to reduce flood risk in the city.

As a Community Interest Company, ARC facilitates the delivery of the long-term natural flood management interventions, funded by a consortium of local businesses, to ensure that city’s flood risk remains low for a longer period. This model not only reduces flood risk but also delivers co-benefits such as carbon sequestration, improved green spaces and better air and water quality which combine to add a further 20 years of flood protection for the city.

Overcoming challenges

Setting up partnerships is not without challenges. It requires political will, long-term commitment and investment from both public and private entities. Success relies on a collaborative mindset, a shared understanding of each partner’s success factors and risk drivers and a willingness to adapt partnership ambitions. While devolved powers and bold decision making can create the conditions for strong partnerships, successful delivery ultimately depends on the public sector’s capability, competence and appetite for risk.

Partnerships are the engine of place-based net zero delivery. By working together, cities, businesses and communities can unlock the skills, resources, expertise and innovation needed to deliver net zero at scale. The journey is complex, but with strong partnerships, local authorities can turn ambition into action and create sustainable, resilient communities for the future.

Having examined the role of powers and partnerships in enabling a place‑based approach to net zero and highlighted the evidence gathered since the NZIIC’s report was published, the next article will explore how data platforms serve as a key enabler too.