Building voluntary partnerships for climate action : an exploratory study from Iceland

The Paris Agreement called for voluntary cooperation between firms, NGOs, and the state, to meet global climate goals. This study examines the development of voluntary carbon projects (VCPs) in Iceland - a country aiming to be carbon neutral by 2040. There is little empirical evidence on what catalyzes voluntary and inter-organizational climate cooperation. To fill this gap, we use a mixed methods research design, surveying firms to understand their awareness and commitment to VCPs, and interviewing state and non-state actors involved in VCPs. In interviews, we tested a cooperation framework with six ‘levers’ to enable cooperation: a superordinate goal, group identity, trust, accountability, communication, and reward distribution. Individualist and collectivist cultural dynamics influence these mechanisms. Survey results showed a general awareness of and support for VCPs, but concerns around their robustness. In interviews, the six cooperation mechanisms offered structured pathways for enabling and strengthening VCPs.