Public sector ‘must step up’ on Net Zero

The public sector needs to begin setting out the projects that it wants developed if bold targets on Net Zero carbon emissions are to be reached, industry experts have claimed.

The public sector needs to begin setting out the projects that it wants developed if bold targets on Net Zero carbon emissions are to be reached, industry experts have claimed.

As more and more private investors pivot towards the Net Zero agenda, a growing number of deals are being done in the private space without government involvement, with investors seeing pressure to fulfil rising ESG expectations.

“When governments get to the point where they are generating projects, there will be a lot to go for, but we are already doing a lot of investments,” said David Cooper, head of infrastructure debt at IFM Investors.

However, experts have warned that such efforts can only take the market so far, and there will be many instances where the public sector needs to step in to deliver the required investment.

“Government needs to provide something to underpin projects and sit in the background,” said one banker. “The other alternative is to create a mechanism for a company to be sure it will make a profit, for example by giving some form of exclusivity.”

An in-depth look into the issues facing the public and private sectors as they grapple with the need to cut emissions will be the focus of our upcoming Net Zero Report 2021, to be published in September