Global Investment and Policy Implications in Low-Carbon, Climate-Resilient Infrastructure

Abstract

The adoption of the Sustainable Development Goals (SDGs) and Paris Agreement in 2015 accelerated the transition to a low-carbon climate-resilient economy which requires significant investment for both new and existing infrastructure. About $9 billion will be required in investment for climate-related infrastructure by 2030, with most of the investment needs originating from developing countries. In this study, the term “climate-related infrastructure (or climate infrastructure)” refers to low-carbon climate-resilient infrastructure that contributes to the mitigation of greenhouse gas emissions and adaptation efforts to climate change. Investment for low-carbon climate resilient infrastructure provides new business opportunities and promotes capacity building in developing countries vulnerable to the adverse impacts of climate change. Based on forecasts for infrastructure needs that factor in climate change, we focus on three sectors ‒ energy (power), transportation and water ‒ to perform our analyses and case studies. This study is designed to review previous literature on low-carbon climate-resilient infrastructure and analyze key features in climate infrastructure finance by multilateral and bilateral development institutions and PPPs. Investment case studies in energy, transportation and water sector are also conducted. Ultimately, this study aims to provide policy implications for supporting Korean companies participating in overseas climate-related infrastructure projects.