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Local Authorities: Leading the Climate Action at Ground Level

As the world faces the escalating challenges of climate change, it’s local authorities who increasingly emerge as pivotal forces for impactful solutions.

As the world faces the escalating challenges of climate change, it’s local authorities who increasingly emerge as pivotal forces for impactful solutions. While national governments set overarching policies and international agreements guide global efforts, real, tangible progress often happens at the community level.

Local authorities are not only participants but leaders, funding climate mitigation and adaptation, and forging alliances with businesses to drive decarbonisation and resilience.

The Vital Role of Local Authorities

Local authorities serve both as policy implementers and catalysts for community engagement. Their wide-ranging responsibilities—from housing and waste management to public transport and land use—uniquely position them to deliver practical climate solutions that directly affect citizens and businesses.

Key Functions:

Planning and Regulation: Councils can prioritise low-carbon development, enforce green building standards, and champion sustainable transport systems through their planning frameworks.

Procurement and Investment: With substantial budgets, local governments can embed sustainability into procurement, creating demand for green goods and services.

Community Leadership: Councils engage residents, schools, and businesses in climate education and behaviour change initiatives.

Partnership Facilitation: By connecting national climate strategies with local innovation, authorities foster partnerships and action networks.

Unlocking Business Opportunities

For businesses, partnering with local authorities on climate action isn’t just about facing new challenges—it opens up a wealth of market opportunities. The transition to a low-carbon economy demands collaboration with private enterprises, offering routes to growth and innovation.

  • Retrofitting public buildings and homes for energy efficiency
  • Developments aligned with local net-zero strategies
  • Local energy projects—solar, wind, and district heating
  • Energy performance contracts and demand management
  • Electric vehicle infrastructure and smart transport systems
  • Recycling partnerships and low-waste business models
  • Flood management and sustainable urban drainage

By aligning with local authority priorities, businesses can access new funding streams, strengthen community ties, and enhance their reputation.

Effective Collaboration: Public-Private Partnerships

One of the most dynamic trends today is the rise of Public-Private Partnerships (PPPs). Councils are forming strategic PPPs to deliver major low-carbon infrastructure projects. For example, Bristol City Council joined forces with Bristol Energy Cooperative to install solar panels on public buildings. The council provided access and support, while the cooperative managed community investment and installations.

Greater Manchester Combined Authority, collaborating with Siemens, SSE Enterprise, and the University of Manchester, launched the Energy Innovation Agency to accelerate low-carbon technology adoption.

In London, boroughs are working with bus and logistics operators to transition fleets to electric and hydrogen, while Transport for London expands EV charging networks and retrofits public transport.

Climate Investment: Fuelling Local Decarbonisation

Local climate funds, often supported by central government or green finance institutions, are crucial for co-financing carbon reduction projects.

The Cambridgeshire & Peterborough Combined Authority, for example, set up the Climate Change Opportunity Fund, allocating £1 million to support decarbonisation and adaptation projects within community organisations.

Similarly, the North East Combined Authority’s regional platform enables investment in nature restoration, green housing, and climate innovation.

Fostering Innovation: Hubs and Clusters

Innovation is thriving thanks to local enterprise partnerships and climate tech incubators that bring together SMEs, investors, and academia.

The CGFI Leeds Innovation Hub, based at the University of Leeds’s Nexus centre, exemplifies this by aligning climate science, financial institutions, and innovative companies to drive regional innovation in climate and environmental analytics, merging finance, data, and climate tech for a greener future.

Strategic Recommendations for Businesses

Engage Early: Participate in local authority climate forums and consultations to understand priorities.

Align with Strategies: Map your offerings to local net-zero and sustainability plans.

Collaborate: Form consortia to deliver integrated climate solutions.

Measure Impact: Track and share carbon savings and social value to strengthen bids.

Leverage Funding: Seek green finance and innovation grants linked to local climate projects.

Local authorities stand on the front lines of climate action, turning policy into progress.

For businesses, engaging with them is both a moral and commercial opportunity. By aligning strategies, investing in innovation, and co-delivering climate initiatives, businesses help build resilient, low-carbon communities—securing sustainable growth and a brighter future for all.

If you have any questions or would like to discuss how our experts could best support you, please contact our ESG consultants today.