The world needs more infrastructure, particularly in developing countries. But not just any infrastructure. To achieve the economic, social and environmental objectives embodied by the Paris Agreement and the Sustainable Development Goals (SGDs), this infrastructure must be sustainable, low-carbon and climate resilient. At the same time, investors' interest in and allocations to infrastructure are gradually increasing driven by a combination of factors (such as low yields in traditional asset classes and inflation protection).
Together, these should be positively reinforcing developments. However, current allocations and volumes of investments still fall short of the estimated $6 trillion per year required to support economic development. Although a variety of stakeholders -from governments to multilateral development banks (MDBs) to institutional investors- have articulated support for Sustainable Infrastructure (SI) investment, progress to date has been patchy.