Document Type

Research Project

Publication Date

9-30-2025

Abstract

Although existing climate governance frameworks acknowledge the significant role of cities and the private sector, they frequently fail to translate this potential into tangible contributions to Nationally Determined Contributions (NDCs). This is due to the failures in aligning the incentives, authority, and accountability properly in multilevel governance frameworks. This results in an interminable break in execution. This paper advocates for a significant transition from process-oriented governance to a results-based paradigm that explicitly associates national support with quantifiable mitigation outcomes. Drawing on a review of integration challenges in multilevel governance, exemplified by the Sri Lankan context and broader trends identified by leading institutions across South & Southeast Asia, reveals a critical deficiency: the absence of procedures that promote reciprocal accountability and incentivise commendable performance. We propose a Performance-Based Co-Governance (PBCG) Framework to address this issue. This concept is founded on three principal tenets: 1) Establishing climate performance agreements between national and subnational entities, 2) Creating market-driven investment platforms to attract private capital, and 3) Implementing a transparent, technology-based verification mechanism. This approach provides subnational entities with an innovative means to foster ambition and achieve quantifiable outcomes. It transforms them from passive policy beneficiaries into active collaborators in the national climate agenda.

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