Climate change cannot be addressed by governments alone; collaboration between governments and the private sector is necessary. If governments and the public are to understand climate action and progress toward climate goals, transparency of greenhouse gas emissions is critical.

The private sector is an important data provider that governments often turn to for information to support climate policies, inform other decision-making processes, and fulfill international requirements under the Paris Agreement.

This paper introduces the concept of a “data loop,” a relationship between governments and the private sector focused on enhancing data sharing, whereby the private sector engages in data reporting and responds to data-reporting arrangements, while governments facilitate mandatory reporting and offer incentives for participation in voluntary systems.

The paper further explores how the “data loop” is relevant to policymaking and can build upon “ambition loops,” a concept that refers to the feedback cycle between the government and the private sector that can foster more ambitious climate action. The paper highlights examples to leverage the two to accelerate and strengthen climate action.

Examples throughout the paper focus on the Asia region, but the lessons can be useful globally to strengthen the relationship between the private sector and governments for enhanced climate action.