Over the last decade, much has been written about globalisation and how we’re more connected than ever before. In the infrastructure world, we think of connectivity as the “linkages of communities, economies and nations through transport, communications, energy, and water networks across a number of countries” .
Bridging the US$15 trillion infrastructure gap has become crucial given the economic impact of COVID-19. GI Hub's Strategic Advisers deep-dive into a way forward to attract private capital.
Investors need certainty of the division of responsibilities between the various parties involved in the project, as well as a clear commitment of payment from the parties, before becoming involved in the project themselves. This requires countries to have reached a clear and durable commitment to their respective responsibilities.
The world is changing, and collectively we are underprepared for many of the challenges ahead. The Global Infrastructure Hub’s vision for the ideal future is a world where sustainable, resilient and inclusive infrastructure works for all people.
With infrastructure responsible for 79% of global GHGs, JETPs have great potential to rebuild trust among stakeholders and help mobilise private climate finance to support the climate transition and sustainable infrastructure development broadly. The JETP platform offers a valuable sandbox to co-create and validate new approaches and innovations while firming up political will
Over the past few decades, there has been substantial change in living standards globally. Keeping pace with profound economic and demographic changes will require a significant increase in infrastructure investment.
After decades of private sector growth, private capital holds most available global finance. The rise of private wealth coincided with the decline of public wealth in developed countries, which now hold zero or even negative shares in total wealth due to significant public debt burdens, according to the 2022 World Inequality Lab Report. Moreover, the 2023 IMF Global Debt Monitor revealed that global public debt reached 90% of GDP in 2022, a dramatic increase from the 30% recorded in the early 1970s.
Institutional investors are facing growing calls for a stronger engagement in development, in particular for infrastructure, climate and social investments. The investment requirements for global sustainable development are huge. State budgets are already stretched in most emerging markets and developing countries (EMDE), with tax bases weakened and public debt piling up.
Private investment in infrastructure remained stagnant for the eighth year in a row. Three trends to inform future policies to fund the significant shift to enable infrastructure to reach climate targets and address global inequalities.
The GI Hub is working with governments and other stakeholders to define transition pathways for infrastructure to meet net zero and sustainable development goals.
Low-income countries must maintain the necessary focus on basic goals such as improving energy access, providing safe and quality transport services, water, food security, and education - while forgoing opportunity, dealing with additional risks, and prioritising climate-smart investments.