According to IFC, economies will need investment extensively over the next 15 years to build new or rehabilitate infrastructures to meet a growing global demand, emerging economies and developing countries accounting for about two-thirds of global infrastructure investment. It’s also a given that most greenhouse gas emissions are due to carbon-intense infrastructure, particularly in the energy, transport, water services. In addition, it’s known that climate change will be felt hardest by lower-income countries.

This perfect storm brings us to the idea of leading private investment and PPP models towards delivering climate-friendly infrastructures.

To this extent, PPP models have both opportunities and challenges. They can provide a helpful framework under which the public and private sectors can coordinate their resources more efficiently. At the same time, climate change poses unique challenges for public and private actors trying to negotiate appropriate risk sharing between the public and private sectors.

This means that climate-friendly PPPs must be taken into account.

Key takeaways:

• Plan for mitigation and adaptation through the decarbonisation approach combined with adaptation strategies can make infrastructure assets more resilient to climate change.
• Plan for a “do no harm” infrastructure, ensuring that new or improved infrastructure does not harm the ecosystem or provide associated benefits.