Building green is not only imperative to achieve global climate and development commitments
in this “decade for delivery”, but will also be critical to sustain socio-economic
development during the COVID-19 recovery. Private investment in particular is needed
to bridge the infrastructure investment gap, given institutional investors’ large
pools of long-term capital. After several years of efforts to upscale institutional
investment in infrastructure, where does the level of investment stand today? This
report provides a first-of-its-kind empirical assessment of investment in infrastructure
by institutional investors domiciled in OECD and G20 countries, presenting a snapshot
from February 2020. Based on a new detailed view of investment channels, financial
instruments, sectoral allocations, regional preferences and trends, the report provides
guidance on policy levers and priorities to scale-up institutional investment in green
Missed the webinar? watch the video recording - Green Infrastructure in the Decade for Delivery: Assessing Institutional Investment
Infrastructure, such as energy, water, transport and healthcare, is critical for socio-economic development and delivering global climate and development commitments. Yet, the infrastructure we need to meet these goals requires an additional annual investment of around USD 2.5-3 trillion globally. Governments cannot plug this gap alone - mobilising private capital is imperative.
The key role of institutional investors in infrastructure development has been long recognised. Infrastructure assets with their long-term, stable and often inflation-hedged revenues align well with the risk-return profile of long-term investors like pension funds and life insurance companies. But with over a decade spent on increasing institutional investment in infrastructure, where does the level of investment stand? How green are the infrastructure assets in institutional portfolios? And what are the levers to upscale investment?