Earlier this month, edie reported that even though nearly every UK local authority has already developed a robust Net Zero strategy, councils are facing a £27bn shortfall in funding to deliver their climate action plans. It’s a stark headline, but not a surprising one, because local ambition has never been the issue. Councils across the country have done much of the heavy lifting by building action plans, setting ambitious targets, and identifying the projects that can deliver real change.

What’s missing is the means to bring those plans to life. It all comes down to funding. Conversely, that’s where the economic opportunity lies.

The potential to unlocking investment by building partnerships, and turn well-designed strategies into tangible, long-term outcomes, is not just about environmental impact; it’s about the long-term impact on local communities.

Be mindful of the gap

According to the analysis, local authorities have already identified 333 investment-ready infrastructure projects, collectively representing £27bn in funding needs. These are practical, ready-to-roll schemes designed to strengthen local economies, protect essential services, and prepare communities for the realities of climate change.

The staggering statistic is the potential upside of bridging this investment gap. If delivered, these projects are forecast to create £67bn in wider economic value, through job creation, improved infrastructure, healthier communities and long-term resilience. Suddenly this is not simply an environmental imperative; it is an economic growth strategy, firmly grounded at a local, cross-country level.

Partnership is the only way forward

The question is not whether these projects should happen, it’s how to fund them. The reality is that government cannot bridge the gap alone. Private and public finance must work hand in hand, creating new investment models and delivery partnerships that allow councils to move from ambition to action.

Now is the time for forward-thinking investors, delivery partners, and technology providers to engage directly with local authorities, not simply as contractors, but as co-creators of long-term, commercially viable solutions that match public sector priorities with private sector innovation.

Data unlocks investment confidence

For me, this is where data comes in. As with any investment proposal, councils must be able to demonstrate the potential to invest with robust information. Starting with showing clear, credible baselines for their current energy use and infrastructure performance, through to modelling the impact of investment as it comes through. This will help to not only to secure funding, but provide ongoing transparency as projects progress. Measurable, visible data builds confidence, for councils, the communities they serve, and for investors. Proving the varied benefits of Net Zero strategies to different stakeholders, in ways that are easily understood, is vital.

Better data also enables more flexible, outcome-based procurement, allowing councils to specify the results they want to achieve such as lower emissions, reduced consumption and greater resilience, while giving partners the freedom to bring forward the most effective solutions. I’ve written previously about the need to take a more evolved approach to procurement, so do look back at that.

The cost of doing nothing is growing by the day

Standing still isn’t a neutral choice. Four in five local authorities already expect essential public services to face disruption from climate impacts such as extreme heat and flooding within the next 15 years. The financial, social and environmental cost of inaction is growing, and it will be felt most sharply by local communities.

Resilience and decarbonisation are no longer separate conversations. Both must advance together, protecting public services while building long-term economic and environmental strength.

Perhaps most importantly, local delivery has the power to inspire. Councils are uniquely placed to engage communities directly in the energy transition, creating visible progress in neighbourhoods, schools, housing, and public spaces. By making Net Zero something that people can see, feel, and experience, councils can build public trust, create shared ownership, while helping to bring the benefits of transition  where they matter most: locally.

This is the decade for delivery

The ambition exists, the planning is done, and the projects are ready. What local authorities need now are partners who can help bridge the gap with commercially viable models, flexible solutions, and shared commitment to turning climate ambition into real-world impact.

The simple message? Net Zero is no longer just a policy target; it’s a local economic growth strategy waiting to be unlocked.

 

Andrew Donald, Business Development Manager (Public Sector)

 

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