| ID | 170836 |
| Title Proper | Financing sustainable infrastructure at scale |
| Language | ENG |
| Author | Déséglise, Christian ; Freijido, Delfina Lopez |
| Summary / Abstract (Note) | Fast economic growth in highly populous regions is triggering enormous needs in power generation, transport, and construction. These regions taken together account for over 60% of global greenhouse gas emissions, with 70% of these emissions emanating from carbon–intensive infrastructure. It is imperative that the development of sustainable infrastructure be accelerated, if we are to avoid the risk of locking–in high–emissions economic development pathways for decades to come.
Unfortunately, scaling up finance for investment in sustainable infrastructure assets has been too slow. It is therefore urgent to establish a new framework to create the right environment for scaling up the development of sustainable infrastructure projects aligned with the Paris Agreement and to mobilize the necessary financing, particularly from the private sector, which is critical to ensure an economy–wide transformation. Based on the work of the One Planet Lab, this essay proposes a holistic framework, which covers the demand side (the generation of bankable projects) as well as the supply side (the provision of financing). Among the essential aspects are encouraging the development of investment–grade assets, embedding sustainability in infrastructure planning, and effective project preparation.
This essay suggests action in two coordinated steps. First, generating the policy frameworks to swiftly channel capital towards sustainable infrastructure. Second, to bring together key stakeholders that will allow the mobilization of finance, including development finance institutions, multilateral and national development banks, private financial institutions, institutional investors, and digital finance innovators. |
| `In' analytical Note | Journal of International Affairs Vol. 73, No.1, ; 2020; p 33-48 |
| Journal Source | Journal of International Affairs 2019-12 73, 1 |
| Key Words | Climate Change ; Infrastructure ; Financing ; Sustainable Development |