Collaborative Pathways for Decarbonisation: Addressing Gaps in Governance, Investment, and Carbon Control

Abstract

Sustainable infrastructure systems are critical to achieving net-zero goals, yet they face challenges like regulatory fragmentation, misaligned financial incentives, and carbon measurement complexities. Despite growing recognition of these challenges, gaps exist between sustainability objectives and investment practices. Collaboration between the investment and sustainability sectors is essential to address these barriers and achieve decarbonisation.

This study concerns the gaps, barriers, and interdependencies in carbon reduction management across sustainable infrastructure systems, focusing on how collaboration between the investment and sustainability sectors can promote decarbonisation efforts aligned with net-zero goals. This study, in particular, focusses on whether and how standardised carbon metrics and investment incentive structures can support sustainable infrastructure investment.

Through a series of semi-structured expert interviews with stakeholders across academic institutions, policy organisations, engineering firms, investment entities, sustainability consultancies, and infrastructure developers, this study explores emission scope complexities, governance and regulatory constraints, and economic and market challenges.

This study also examines the interdependencies among barriers and enablers influencing collaboration and explores whether strategic integrated frameworks can further support decarbonisation efforts and evaluate the carbon performance of infrastructure systems. Using Interpretive Structural Modelling (ISM) and MICMAC Matrice d'Impacts Croisés Multiplication Appliquée á un Classement" (Cross-Impact Matrix Multiplication Applied to Classification) analysis, this research structures constraints and influences among identified gaps based on their driving power and dependence relationships, identifying key intervention points.

Findings reveal that difficult-to-control carbon emissions, mismatched short-term and long-term costs and benefits, misaligned financial incentives, and regulatory fragmentation exhibit strong driving power as primary obstacles shaping other challenges. The findings further suggest that supply chain coordination and policy alignment could play a critical role in mitigating these barriers. The results highlight leverage points, where coordinated actions could significantly enhance collaboration between the investment and sustainability sectors while accelerating decarbonisation efforts. This research helps to address challenges specific to carbon reduction management as well as establishing a foundation for integrating standardised practices into sustainable infrastructure investment strategies.