United for Net Zero Public Private Collaboration to Accelerate Industry Decarbonization 2025

Foreword Tackling climate change urgently calls for global collective action. Both the public and the private sectors contribute to greenhouse gas (GHG) emissions through their respective operations and influence on the economy. Industries still rely on fossil fuels for energy, production processes and logistics, driving significant emissions, and the public sector is also responsible for major emissions through infrastructure projects, transport and buildings. More importantly, it implements policies and regulations that can either mitigate or exacerbate emissions, depending on how they shape energy use, land development and industrial practices. Public-private collaboration plays a pivotal role in accelerating the transition to net zero. Both sectors have complementary strengths they can use to mitigate their emissions at scale. Industry leaders have the power to reduce internal emissions by pursuing energy efficiency, rethinking product design and business models, or supporting suppliers to decarbonize. However, reaching net zero means addressing major barriers such as making positive business cases, tracking carbon emissions throughout value chains, or scaling risky and costly net-zero innovations. Businesses, therefore, need governments to provide financial incentives, invest in research and development, implement tailored and coherent regulatory frameworks, and encourage sustainable consumption – as seen in the electric vehicles (EV) market. Public sectors, on the other hand, can benefit from a stronger collaboration to tailor policies to businesses’ needs, overcome bureaucracy and political considerations, and continue prioritizing decarbonization, especially in times of economic downturns. Business leaders have the opportunity to proactively collaborate and engage with public stakeholders to shape the conditions for a fair decarbonization of society and the economy. In 2022, the World Economic Forum launched the Industry Net Zero Accelerator initiative in collaboration with Cambridge Industrial Innovation Policy (Institute for Manufacturing, University of Cambridge), Capgemini, Rockwell Automation, Siemens and Schneider Electric, as well as a community of more than 45 global manufacturing companies, to help accelerate the industry transition to net zero. Following the Forum’s 2023 publication of The “No-Excuse” Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains and The “No Excuse” Opportunities to Tackle Scope 3 Emissions in Manufacturing and Value Chains, the initiative has conducted over 60 consultations among industry executives, academic experts and government leaders to understand the latest barriers hindering progress to net zero, and the most successful public-private collaboration mechanisms supporting the transition. This white paper introduces a framework with eight public-private collaboration opportunities, serving as a guide for manufacturers looking to engage more effectively with public stakeholders to overcome key barriers to net zero. If united, private and public stakeholders can accelerate the journey towards a sustainable future. Kiva Allgood Head, Centre for Advanced Manufacturing and Supply Chains; Member, Executive Committee, World Economic ForumGwenaelle Avice Huet Executive Vice-President, Europe Operations, Schneider Electric David Leal-Ayala Deputy Head, Policy Links Unit, Cambridge Industrial Innovation Policy, IfM Engage, University of CambridgeBlake Moret Chairman and Chief Executive Officer, Rockwell AutomationRoshan Gya Chief Executive Officer, Capgemini Invent; Member, Group Executive Committee, Capgemini Cedrik Neike Member, Managing Board, Siemens; Chief Executive Officer, Digital Industries United for Net Zero: Public-Private Collaboration to Accelerate Industry DecarbonizationJanuary 2025 United for Net Zero: Public-Private Collaboration to Accelerate Industry Decarbonization 3