As part of Innovate UK’s Net Zero Living Programme, ep consultancy launched the Shift to Net Zero (S2NZ) project to help two-tier local authorities build the knowledge, confidence, and internal capacity to access and deploy private finance in support of local net zero targets. This is Phase 2 of an ongoing project, working with three core partners from Phase 1, Surrey, Kent, and Essex County Councils; along with associate authorities and members of the Thriving Places group.

The challenge

One of the key challenges of this project was in supporting a cultural shift within local authorities toward greater acceptance of private finance as a necessary tool for delivering net zero goals. Many local authority net zero officers were unfamiliar or uncomfortable with investor engagement, often due to concerns around risk, control, or precedent. This, combined with the evolving governance landscape, meant the project had to focus on building confidence and demystifying public-private financial models.

Another key challenge was selecting asset classes suitable for blended finance. While initiatives like retrofits, EV infrastructure, and nature-based solutions are essential, many struggle to attract private investment due to complexity or limited revenue streams. This highlighted the need for local authorities to design investable project portfolios and leverage blended finance models effectively.

The innovation

There were five integrated workstreams: content development, in-house training, knowledge sharing platform creation, direct engagement events, and project coordination.

Through structured training, knowledge exchange, and digital resource development, the project shifted mindsets, particularly among senior leadership, toward viewing private capital as a necessary and viable component of decarbonisation at scale. The project developed adaptable skills, tools, and frameworks that could flex with governance changes. It is estimated that more than 50 senior leaders were actively involved over the course of the project, primarily from the three Phase 1 local authority partners, but also from North and South Essex Councils, Oxfordshire County Council, and the West of England Combined Authority, among others.

The Knowledge Sharing Platform (www.nzdv.co.uk) was at the heart of the project, a digital hub featuring training materials, case studies, and tools structured around the five stages of project development that could support net zero officers beyond the life of the programme. The platform also hosts resources on the proposed Net Zero Delivery Vehicle (NZDV), a financing and delivery model co-designed with LAs to aggregate and quality assure net zero projects.

The project’s flagship Net Zero Finance Leadership Summit, which attracted over 90 participants, proved to be a watershed moment. Bringing together senior representatives from the Department for Energy Security and Net Zero (DESNZ), the National Wealth Fund, Local Partnerships, Aviva Investors, and local authority leaders, the event created a space for investors, policymakers, and LAs to meet on equal footing, helping shift narratives and bridge the historic disconnect between the public and private sectors.

The depth and openness of the conversation created a real sense of shared purpose. Rather than reinforcing the usual divide between sectors, the summit helped surface common ground, particularly around the need to create investable local net zero portfolios.

– Miti Davda, Consultant, ep consultancy

The impact

The Shift to Net Zero project’s impact on Surrey County Council has been tangible and transformative. Through tailored workshops and ongoing collaboration, the project directly enhanced the confidence and financial literacy of officers and decision-makers, equipping them with tools to assess and structure investment-ready decarbonisation projects.

Surrey’s engagement also helped shape the development of the NZDV model. The council played a key role in stress-testing its practical relevance and applicability, providing insights that will benefit other local authorities facing similar challenges.

The council also benefited from taking part in the Net Zero Finance Leadership Summit, opening new channels of dialogue and signalling its ambition to lead on innovative financing for net zero delivery.

Surrey County Council’s involvement in the Shift to Net Zero project has been a valuable opportunity to explore how local authorities can better attract private sector capital to finance net zero infrastructure. One approach explored was the Net Zero Delivery Vehicle (NZDV), a public-private investment model designed to address common barriers to financing. The project provided important insights on how aggregating smaller projects could achieve the scale often required by investors, the factors influencing investor decision making, and potential governance structures to support procurement and delivery.

– Sadam Kiwanuka, Greener Futures Manager, Climate Change Team, Surrey County Council

What’s next?

The immediate focus is expanding and refining the Knowledge Sharing Platform to make sure it remains a living resource, providing local authorities with the tools, case studies, and guidance needed to turn learning into delivery. ep consultancy is also looking to formally establish the NZDV with seed funding used to set the legal structure up and deliver the first round of priority investments for the founding local authorities. Success will be measured by the NZDV’s ability to help councils structure and deliver aggregated, investment-ready portfolios that attract private capital while meeting local needs.

The longer-term vision is ambitious, normalising private finance as a tool for local net zero delivery and providing local authorities with the ongoing support and confidence they need to lead this transition at scale.

For organisations looking to work effectively with local authorities, Leo offers practical guidance: understand their constraints, emphasise co-benefits, be clear and collaborative, and patient.

For both local authorities and delivery partners, working with Innovate UK provides a structured framework to explore innovation where traditional funding models fall short. It encourages experimentation, builds internal capacity, and creates a trusted environment for public-private collaboration. Backing from Innovate UK lends weight to innovative models. It helps attract further funding and buy-in from senior stakeholders, turning complex ambitions like net zero into practical, place-based action.

– Leo Bedford, Director, ep consultancy