Climate change

Mobilizing Private Investment in Low-Carbon, Climate-Resilient Infrastructure

 

Mobilizing Private Investment in Low-Carbon, Climate-Resilient Infrastructure
Expert Meeting
6 February 2012
OECD Headquarters, Paris

 

Summary Report (includes list of participants)

 

This expert meeting supports an OECD project that promotes good practice policies for encouraging private sector investment in low-carbon climate-resilient (LCCR) infrastructure. The project entails synthesis and analysis of policies and practices in OECD and non-OECD countries, with deeper insights drawn from case studies. One working paper will be produced, in a series of papers in this work area exploring good practice in policy design, implementation and government practices.


The meeting brought together outside experts to share experience and gather empirical evidence about financial and market barriers to LCCR infrastructure investment. It aimed to help project leaders access experience and on-the-ground knowledge about a variety of policies, instruments and practices designed to overcome LCCR investment barriers in different country contexts and selected sectors (in particular transportation). A case study of LCCR investment in Mexico was explored through the workshop, drawing upon expertise in transportation, public-private partnerships, infrastructure risk assessment, and climate change adaptation. It was designed as a small, informal and interactive expert discussion.

 

Partial grant funding for this event has been kindly provided by the government of the United Kingdom.

 

Opening session

Welcoming remarks: Jan Corfee-Morlot and Chris Kennedy, OECD

Presentation: Towards an OECD Policy Framework for Green Investment. Jan Corfee-Morlot and Cristina Tebar-Less, OECD

 

Session I. Towards Low-Carbon Climate-Resilient Infrastructure

Presentation: Defining and financing LCCR infrastructure. Chris Kennedy, OECD

 

Discussion

  • What are the most useful components of the LCCR policy framework for infrastructure and how might it be improved as a tool for policymakers and other decision-makers?
  • What are the particular financing and investment challenges for: i) infrastructure; ii) LCCR infrastructure development?

Session II. Infrastructure for Climate Change Adaptation

Presentations:  Stephane Hallegatte, World Bank;  Michael Mullan, OECD

 

Discussion:

  • What policies and tools are governments and others developing for adapting infrastructure to climate change (including facilitating private sector engagement and investment)?
  • What are the key financing gaps in adapting infrastructure? What role for private sector versus public sector finance and investment?
  • What synergies and trade-offs if any in infrastructure sectors adaptation and mitigation simultaneously with other development goals?

Session III. Public-Private Partnerships for LCCR Infrastructure

Presentation: Joop Koppenjan, Erasmus University Rotterdam

 

Discussion:

  • Are climate change considerations being incorporated into PPP settings (e.g., within national guidelines or into performance-based specifications in PPP agreements)?
  • What types of PPPs work best for different sectors? Who should bear what type of risks, and at which stage of PPP projects?
  • To what extent is there a policy learning process on PPPs amongst (developing) countries?

Session IV. Evaluating Investor Risk in Infrastructure Projects

Presentation: Mike Wilkins, Standard & Poor's Ratings Services
Discussion:

  • What policies can be used to reduce investors’ risks, if subsidies are insufficient to provide adequate private sector returns at current levels of risk?
  • What examples are there of countries reducing investors risks through government policy or by other means?

Session V. Applying the LCCR Framework to the Transportation Sector: Towards Good Practice

Presentations:
David Banister, Oxford University

Geraldine Ang, OECD

 

Discussion:

  • What are the main challenges and market failures specific to LCCR transport infrastructure? How can these be best addressed through policy to catalyse private sector participation in transport LCCR infrastructure investment?
  • What are the key assessment methods, risk-sharing mechanisms and financial instruments to improve projects risk-return value proposition and meet the private sector’s requirements?
  • What are the priorities, opportunities and challenges in the transport sector to integrate adaptation to climate change?
  • What is the price of carbon, or size of subsidy, or other form of public intervention required to transform investment towards LCCR transportation infrastructure?
  • How successful has land value capture been in increasing revenues from transportation infrastructure investments?

Session VI. Mexico Case Study

 

Presentations:

Nancy Kete
Adriana Lobo and Salvador Herrera, CTS Mexico: Preliminary Outline of an LCCR Transportation Case Study for Mexico.

Discussion:

  • How can we best highlight good practices for mobilising private investments in LCCR transportation infrastructure in the Mexico case study?
  • What insights from today’s meeting might be explored further through the Mexico case study?

Closing session

Closing remarks: Chris Kennedy, OECD

Discussion

  • What are the key lessons learned – notions of best practice – emerging from the meeting?
  • What are the key remaining questions to address in attracting private investment in LCCR infrastructure?
SUMMARY REPORT

 

For further information or queries, contact:

i) Chris Kennedy (christopher.kennedy[at]oecd.org ; +33 1 45 24 82 83 - project leader)

ii) Geraldine Ang (geraldine.ang[at]oecd.org ; +33 1 45 25 83 78 - meeting logistics)

 

Related documents (non-OECD):
How Europe's Initiative To Stimulate Infrastructure Project Bond Financing Could Affect Ratings (Standard & Poor's Global Credit Portal, May 2011)

Can Capital Markets Bridge The Climate Change Financing Gap? (Standard & Poor's Global Credit Portal, October 2010)

 

Related Documents

 

Investment and climate change

Workshop on Catalysing Investment in Low-Carbon and Climate-Resilient Growth, November 2011

Catalysing Private Climate Finance

Financing Climate Change Action

Financing Adaptation to Climate Change

Institutional investors and long-term investment

 

Countries list

  • Afghanistan
  • Albania
  • Algeria
  • Andorra
  • Angola
  • Anguilla
  • Antigua and Barbuda
  • Argentina
  • Armenia
  • Aruba
  • Australia
  • Austria
  • Azerbaijan
  • Bahamas
  • Bahrain
  • Bangladesh
  • Barbados
  • Belarus
  • Belgium
  • Belize
  • Benin
  • Bermuda
  • Bhutan
  • Bolivia
  • Bosnia and Herzegovina
  • Botswana
  • Brazil
  • Brunei Darussalam
  • Bulgaria
  • Burkina Faso
  • Burundi
  • Cambodia
  • Cameroon
  • Canada
  • Cape Verde
  • Cayman Islands
  • Central African Republic
  • Chad
  • Chile
  • China (People’s Republic of)
  • Chinese Taipei
  • Colombia
  • Comoros
  • Congo
  • Cook Islands
  • Costa Rica
  • Croatia
  • Cuba
  • Cyprus
  • Czech Republic
  • Côte d'Ivoire
  • Democratic People's Republic of Korea
  • Democratic Republic of the Congo
  • Denmark
  • Djibouti
  • Dominica
  • Dominican Republic
  • Ecuador
  • Egypt
  • El Salvador
  • Equatorial Guinea
  • Eritrea
  • Estonia
  • Ethiopia
  • European Union
  • Faeroe Islands
  • Fiji
  • Finland
  • Former Yugoslav Republic of Macedonia (FYROM)
  • France
  • French Guiana
  • Gabon
  • Gambia
  • Georgia
  • Germany
  • Ghana
  • Gibraltar
  • Greece
  • Greenland
  • Grenada
  • Guatemala
  • Guernsey
  • Guinea
  • Guinea-Bissau
  • Guyana
  • Haiti
  • Honduras
  • Hong Kong, China
  • Hungary
  • Iceland
  • India
  • Indonesia
  • Iraq
  • Ireland
  • Islamic Republic of Iran
  • Isle of Man
  • Israel
  • Italy
  • Jamaica
  • Japan
  • Jersey
  • Jordan
  • Kazakhstan
  • Kenya
  • Kiribati
  • Korea
  • Kuwait
  • Kyrgyzstan
  • Lao People's Democratic Republic
  • Latvia
  • Lebanon
  • Lesotho
  • Liberia
  • Libya
  • Liechtenstein
  • Lithuania
  • Luxembourg
  • Macao (China)
  • Madagascar
  • Malawi
  • Malaysia
  • Maldives
  • Mali
  • Malta
  • Marshall Islands
  • Mauritania
  • Mauritius
  • Mayotte
  • Mexico
  • Micronesia (Federated States of)
  • Moldova
  • Monaco
  • Mongolia
  • Montenegro
  • Montserrat
  • Morocco
  • Mozambique
  • Myanmar
  • Namibia
  • Nauru
  • Nepal
  • Netherlands
  • Netherlands Antilles
  • New Zealand
  • Nicaragua
  • Niger
  • Nigeria
  • Niue
  • Norway
  • Oman
  • Pakistan
  • Palau
  • Palestinian Administered Areas
  • Panama
  • Papua New Guinea
  • Paraguay
  • Peru
  • Philippines
  • Poland
  • Portugal
  • Puerto Rico
  • Qatar
  • Romania
  • Russian Federation
  • Rwanda
  • Saint Helena
  • Saint Kitts and Nevis
  • Saint Lucia
  • Saint Vincent and the Grenadines
  • Samoa
  • San Marino
  • Sao Tome and Principe
  • Saudi Arabia
  • Senegal
  • Serbia
  • Serbia and Montenegro (pre-June 2006)
  • Seychelles
  • Sierra Leone
  • Singapore
  • Slovak Republic
  • Slovenia
  • Solomon Islands
  • Somalia
  • South Africa
  • South Sudan
  • Spain
  • Sri Lanka
  • Sudan
  • Suriname
  • Swaziland
  • Sweden
  • Switzerland
  • Syrian Arab Republic
  • Tajikistan
  • Tanzania
  • Thailand
  • Timor-Leste
  • Togo
  • Tokelau
  • Tonga
  • Trinidad and Tobago
  • Tunisia
  • Turkey
  • Turkmenistan
  • Turks and Caicos Islands
  • Tuvalu
  • Uganda
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • United States
  • United States Virgin Islands
  • Uruguay
  • Uzbekistan
  • Vanuatu
  • Venezuela
  • Vietnam
  • Virgin Islands (UK)
  • Wallis and Futuna Islands
  • Western Sahara
  • Yemen
  • Zambia
  • Zimbabwe
  • Topics list