Privatizing environmental governance: the evolving relationship between regulators and private entities

Environmental governance is undergoing a structural shift as governments increasingly delegate regulatory responsibilities to private actors as part of broader privatization processes. While this shift may enhance efficiency and leverage specialized expertise, it also redefines the regulator’s role–from enforcer to coordinator–overseeing partnerships with private firms. This study examines these dynamics through a case study of the Israeli Ministry of Environmental Protection, focusing on the evolving relationship between this regulator and private entities, and how this reshapes governance performance. Using qualitative methods, the research examines distinct privatization models, each exerting a different influence on regulatory relationships and governance performance. Findings show that privatization expands regulatory capacity but also raises concerns about transparency, accountability, and the long-term independence of public oversight. These challenges are especially evident in compliance monitoring and policy development, where private entities exert growing influence. As environmental challenges intensify, ensuring that privatization strengthens rather than weakens regulatory integrity is critical. This study highlights the increasing interdependence between regulators and private entities and emphasizes the need for robust oversight mechanisms to safeguard environmental protection. By situating Israel’s experience within global trends, it provides key insights into balancing private-sector involvement with the public interest in environmental sustainability.