Understanding Public-Private Partnerships for climate adaptation and resilience

Cities and regions are increasingly exposed to more frequent climate hazards, such as floods, heatwaves, droughts and storms. Their impacts damage infrastructure, disrupt essential services and hit the most vulnerable communities first and hardest. Meeting these challenges requires major investment in adaptation, at a time when public budgets are constrained and the global adaptation finance gap continues to widen.

Public–Private Partnerships (PPPs) are one way to bring additional resources, skills and innovation into adaptation. A PPP is generally considered long-term agreement between a public authority and a private party in which the private partner helps design, finance, build, operate or maintain a public asset or service, and is paid based on performance. 

When well designed, PPPs can improve the “bankability” of adaptation projects and support more resilient infrastructure and services. However, PPPs are complex and not a quick fix. Many local and regional authorities have limited experience with PPPs and face legal, institutional and capacity barriers. Concerns include unequal negotiation power, lack of transparency, unclear incentives and the risk of being locked into costly, inflexible contracts.

The following guide focuses on helping local authorities understand PPPs in the context of climate adaptation before moving towards design and implementation. It provides a general introduction to PPPs, highlighting specific features and possible arrangements.