Last year’s Sustainable Development Goals (SDGs) and Paris Agreement on climate change represent a significant political shift away from a dependency on fossil fuels towards an era of development more in harmony with the environment. They broaden the previous focus of tackling poverty to include leaving no-one behind and tackling inequality.
Both will require billions, if not trillions, of pounds to implement.
With limited aid budgets, donor governments and global institutions have quickly set their sights on leveraging private sector investment as a way of plugging this finance gap. Aid budgets are increasingly directed towards participating in private sector projects, such as big infrastructure projects like roads, ports and hospitals; service provision such as schools; energy and healthcare.
But if public-private partnerships (PPPs) are to be used effectively to implement both the SDGs and the Paris Agreement, donors need to keep three key rules in mind. (more…)