Back to knowledge
Module 2 - Spotlight session 2: Engaging the private sector

When: 7 October 2025 | 9:15 - 11:00 CET

Duration: 1 hr 45 min

 

Topic: 

Currently, urban environments are responsible for nearly 70% of the global carbon footprint, of which the 100 largest emitting cities alone account for around 18% (Moran et al., 2018). Transforming the urban economy sustainably means offering zero-emission alternatives for services, products and production processes that involve GHG emissions. Since municipalities lack the means and capacity to develop and finance innovation on such a large scale,  and achieving sustainability in urban settings requires not only significant financial investment but also the active involvement of various local stakeholders, including and the private sector. To meet this challenge, cities need to reform their governance practices and explore new models and approaches to effectively engage small, medium and large businesses in developing and investing in decarbonization projects.

There are multiple ways to involve the private sector, across various types of projects. When crafting an engagement strategy, transition teams must consider two key aspects. First, ensuring that the selected projects contribute meaningfully to the decarbonization of the city’s most carbon-intensive sectors, while also offering viable alternatives to high-emission practices. Second, the strategy must be designed to wisely allocate the municipality's available human and financial resources. This means identifying high-leverage projects—those where a strategic input can deliver significant impact.

Achieving this requires a holistic approach to building a portfolio of projects that, collectively, can drive full urban decarbonization.

By the end of the module participants will be able to:

  • Identify the necessary roles and skills within the transition team;
  • Develop an effective private sector engagement strategy; 
  • Design an incentive portfolio;
  • Explore various engagement models;

Who is this session for?

This module is designed to support municipal transition teams in developing a strategy for engaging the private sector in urban climate neutrality efforts. "Engagement" in this context refers to the active participation of companies in decarbonization projects—both through investment and implementation.

 

Supporting Material:

 

Facilitators

 

    

Comments ()

Tags

EducationStakeholder engagement
Under license CC BY-NC-SA
This license allows reusers to distribute, remix, adapt, and build upon the material in any medium or format for noncommercial purposes only, and only so long as attribution is given to the creator. If you remix, adapt, or build upon the material, you must license the modified material under identical terms.