Sustainable infrastructure finance

This project focuses on a particular aspect of climate-compatible development: finance for infrastructure. Over the next 20 years, around $100 trillion will be invested in new buildings, energy systems, and water and transport networks worldwide. The investment needs are so large that they exceed the value of the existing stock of global infrastructure. It has been estimated that around 70% of the investment will be in middle-income countries. How this infrastructure is built will be critical for enhancing access to basic services and supporting growth, but it will also be critical to the prospects for sustainable development, as it could lock in emissions and vulnerability profiles for the long term.
In this project we work with international financial institutions, both established and new, to find better ways to finance infrastructure in a climate-compatible way, such as mobilising blended finance, adjusting development banks’ gearing ratios and increasing paid-in capital.

The research leaders for this project are Sam Fankhauser and Nick Stern.