With the UK Net Zero Strategy targeting a 50% reduction in emissions from public sector buildings by 2032 and 75% by 2037, compared to 2017 levels, public sector estates directors face significant challenges in decarbonising their estates.
Independent reviews of the UK’s overall performance, for example the Climate Action Tracker, evaluate the performance as insufficient. Whilst there are credible policies covering some reductions, these only cover a third of what is required to meet the UK’s current 2050 target.
Coupled with urgent backlog requirements, achieving net zero in addition poses a significant challenge. This is where Public Private Partnerships (PPPs) will become essential.
I recently had the pleasure of chairing a conversation on this topic with my colleagues, Simon Brown, Head of Carbon and Energy at RLB, Kirsty O’Brien, Asset Management Director at John Laing Group and Chris Fridlington, Economic Director at Bolsover District Council at the recent Government Property 2025 conference.
The Importance of Partnerships in the Transition to Net Zero
There was clear acknowledgement, that committed long-term relationships rather than transactional ones with a focus on innovation and funding is needed to meet net zero ambitions. For public sector to realise net zero goals, collaborative approaches need to happen, incorporating capital from the private sector, but deployed in an innovative way that benefitted both parties.
“Only through partnership working are we going to deliver a transition to net zero in the UK. Neither the private nor public sector can do it by themselves. It works as a system and needs all parts to play; partnerships allow us to accelerate delivery.” Chris Fridlington, Bolsover Council
For such partnerships to be effective, a robust framework must be established, ensuring trust, transparency and alignment of long-term objectives. Overcoming obstacles and integrating diverse skills and expertise from various stakeholders will be critical to success.
“If we can establish trust and transparency, there is so much opportunity to achieve so much success.” Kirsty O’Brien, John Laing
Characteristics of Successful Partnerships
Given that nearly 40% of all carbon emissions stem from the built environment, addressing this sector’s emissions presents a significant opportunity. However, achieving such ambitious goals requires strategic thinking rather than reactive measures. Stakeholders must focus on long-term futureproofing rather than short-term fixes, aligning funding accordingly.
“For the private sector to be engaged, we need a bow wave of opportunity that is structured, targets transaction and cost efficiencies so that funders are reassured that the capital deployed will be done in a meaningful and constructive way.” Simon Brown, RLB
Drawing lessons from past PFI agreements, PPPs must be structured to facilitate large-scale capital deployment effectively. The private sector’s role extends beyond funding – and could include equipping public sector partners with the necessary market knowledge, risk assessments and strategies to navigate the market.
“In order for all parties to succeed, it needs to be recognised that private sector investors need to generate returns. It is only at this point that we can drive progress through collaborative working. I believe that there is a massive opportunity for all parties, working together, to find creative solutions to achieve our net zero goals. By employing such an approach, there should be benefits for all parties. We need to be asking how we do more for less and what such a model looks like. Cohesive thinking and planning will be a key driver in achieving success.” Kirsty O’Brien, John Laing
Overcoming Barriers to Net Zero
For many working in public sector estates management, it isn’t the technical knowledge of the challenge ahead that is immobilising. It is the skills gap, the finance, and breaking down systemic barriers. Achieving large-scale futureproofing at pace requires vision and a willingness to adapt.
“The challenges we have today are very different than those we had 25 years ago and will be different than those we have in 25 years ahead. There is a need for flexibility and trust across the relationships to be able to evolve with the headwinds that come down the line.” Simon Brown, RLB
Given these uncertainties, flexibility in procurement and contract structures is essential. Rather than allowing cost to be the sole determinant, agreements must provide guardrails
“Flexibility in how you procure it, the contract gives the guardrails and the parameters – but if we have a problem – we are not restricted by over specified contractual terms.” Chris Fridlington, Bolsover Council
In Conclusion
The path to net zero is inextricably linked to private and public sector partnerships bringing together funding and expertise. However, for partnerships to be successful, they must be relationship-led, rather than transactional, built on shared goals, benefits and outcomes, vision and trust.
A structured framework will be necessary to minimise transaction costs and enhance efficiency. To achieve success at scale, we need to take a strategic rather than tactical approach – development of a pipeline which optimises the supply chain, and fosters collaboration that extends beyond immediate financial considerations to deliver lasting impact through partnerships.
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