Sustainable Infrastructure

‘Revitalising infrastructure investment’ was a focus at the recent G20 FMCBG meeting, and GI Hub-led work on sustainable investment and public infrastructure spending was endorsed.

Reports and reference guides

The IMF's C-PIMA framework helps governments identify potential improvements in public investment institutions and processes to build low-carbon and climate-resilient infrastructure.

Source: IMF

Reports and reference guides

The World Bank Group has launched a series of Country Climate and Development Reports (CCDRs) that discuss development paths countries can take to reduce greenhouse gas emissions and boost climate adaptation.

Source: World Bank

Data insights

Post–COVID-19, USD3.2 trillion of additional infrastructure investment was announced. More than half is being directed to long-term priorities like the low-carbon transition, affordability, digitalisation, and inclusive mobility.

Data insights

As of March 2022, governments worldwide had earmarked more than USD710 billion in sustainable recovery measures, according to International Energy Agency estimates. This is the largest ever clean energy recovery effort, 40% more than was spent after the global financial crisis.

Source: IEA

Forums

At least 10% of global GHG emissions can be addressed through circular infrastructure, which will require systemic change and innovation at a global scale. A G20 workshop explored circularity in infrastructure.

Reports and reference guides

The G20 Sustainable Finance Working Group (SFWG) has created a Synthesis Report that examines the current practices and challenges in aligning investment to sustainability goals and overcoming information challenges.

Reports and reference guides

There are no agreed taxonomies, metrics or indicators detailing ESG impacts and risks relevant to infrastructure. EDHECinfra examined this in a recent report.

Source: EDHECInfra

Sustainable infrstructure indicators and standards

In a recent report created for the G20, the OECD examined 21 sustainable infrastructure definitions, standards and tools to determine the extent of convergence in ESG factors across these various approaches.

Source: OECD

Sustainable infrstructure indicators and standards

The FAST-Infra Sustainable Infrastructure Label is a globally applicable label for projects demonstrating significant positive sustainability performance.

Source: FAST-Infra

Sustainable infrstructure indicators and standards

The MDB Infrastructure Cooperation Platform (ICP) presents 16 key sustainable infrastructure indicators that provide common denominators of sustainable infrastructure frameworks MDB initiatives.

Source: IADB

Databases

The GI Hub’s Quality Infrastructure Investment (QII) Database includes case studies and examples of projects or programs that demonstrate QII or exemplify good practice.

Reports and reference guides

Common features of regulatory frameworks for climate change, environmental and social sustainability are summarised in a stocktake report produced for the G20 by the World Bank’s Global Infrastructure Facility (GIF).

Source: World Bank Group

Reports and reference guides

PPP policies and legislation can ensure that climate change impact analysis is undertaken during project development. The World Bank's Climate-Smart PPP Legal and Regulatory Framework provided references to regulatory and policy instruments from around the globe.

Reports and reference guides

Institutional investors currently face some regulatory disincentives in investing in infrastructure. ‘Right-size’ capital requirements for MDBs and other investors in infrastructure are needed, given the default experience of infrastructure assets.

Source: Global Financial Governance

Forums

The GI Hub’s Coalition on Regulatory Treatment of Infrastructure as an Asset Class is  shaping proposals to the G20 and standard-setting bodies to create a more conducive regulatory environment for infrastructure investment.

Forums

The GI Hub hosted an expert discussion of decisions that will drive strong investment outcomes as well as positive global impacts.

Reports and reference guides

Risk allocation is at the centre of every PPP transaction. The GI Hub PPP Risk Allocation Tool is a reference for appropriate allocation of project risks in PPP projects. It details 16 key risk categories across 18 project types.

Reports and reference guides

The World Bank's Guide to Guidance identifies the "best of breed" guidance currently available from PPP guidelines worldwide and selected professional publications.

Source: Word Bank Group

Data insights

To invest USD3 trillion annually by 2050 (the estimated amount of investment needed to close the infrastructure gap), at least USD30 billion would be needed annually for project preparation, according to a recent World Bank and Global Infrastructure Facility (GIF) report.

Source: World Bank Group

Data insights

Project preparation costs have increased substantially over the past two decades, and can now average up to 10% of the project cost.

Data insights

On average, project preparation takes six years, but it can take up to 14 years if projects are not properly planned.

Forums

The ILN Sustainable Infrastructure Fellowship Program equips senior leaders in emerging markets with the skills to increase private investment in sustainable infrastructure.

Reports and reference guides

The GI Hub identified 26 levers governments can apply to improve bankability and attract more private capital to infrastructure. View the funding and financing framework, including case studies of effective practice using revenue, risk management, and finance levers.

Reports and reference guides

The World Bank’s Global Infrastructure Facility reports on the strategic use of innovative finance solutions—employing mechanisms such as blended finance, asset recycling, securitised programs, and the use of local currency financing—to help de-risk investment opportunities.

Source: World Bank Group

Reports and reference guides

Blended finance is one critically important approach to mobilise new sources of capital for the SDGs. Around half the funding required to achieve the SDGs in developing countries can be in the form of investment.

Source: Convergence

Data insights

In 2021, 20% of private investment in infrastructure projects was financed either by a green bond (10%) or a green loan (11%). This sustainable financing share is more than double the average sustainable financing share (9%) in the five years before 2021.

Data insights

MDBs have made significant climate finance commitments. As of 2020, overall commitments of the five major MDBs reached USD32 billion.

Source: Joint Report on Multilateral Development Banks

Forums

The 2022 G20 Infrastructure Investors’ Dialogue highlighted the private investors’ commitment to developing and financing sustainable infrastructure. This reinforced the strong demand from international investors for more bankable infrastructure investment opportunities.

Source: Indonesian G20 Presidency

Reports and reference guides

Better awareness around InfraTech use cases and benefits can spur its adoption. Nearly 100 case studies across a wide range of sectors and countries were analysed to derive effective approaches to scaling up InfraTech.

Data insights

The World Bank’s report on InfraTech Value Drivers indicated that new analytical capabilities in portfolio planning could deliver 10–20% in savings on capital expenditure.

Source: World Bank

Data insights

The McKinsey Global Institute estimates that technology can increase construction productivity by 15% globally. Better practices can help firms unlock digital’s value across their enterprises.

Source: McKinsey Global Institute

Forums

Hear from an expert panel on what makes InfraTech investible and how to de-risk technology and mobilise more investment, specifically in the context of the climate transition.