Climate action is increasingly a factor for investors in infrastructure in developing countries. Infrastructure projects require long-term financing, which means that they must be examined very closely to be sure that they will not be adversely effected by developments in climate change.

Crowding investors into infrastructure in developing countries

Long-term funding for crucial infrastructure in developing countries such as energy projects, water and sanitation, and transport are vital to economic growth. Those projects increasingly include a climate action element, says Heike Ruettgers, head of the European Investment Bank's impact finance division. "The real challenge is to crowd-in private banks to help finance these projects," she says. Each success in this field leads to a greater appetite among private investors to support infrastructure in developing countries.

Infrastructure in developing countries: Built to last, no matter the weather

Mobilising private funds is key to all climate projects, but it's extremely important in climate-related infrastructure in developing countries. That's even more true after the Paris climate agreement of last December. Last year the EIB lent a record EUR 20.6 billion for climate action (26.8% of all the Bank's lending) in every one of the 28 EU member states, and in projects from Nicaragua to Nepal. To help meet the standards set in Paris, the EIB expects to finance climate-friendly projects worth USD100 billion by 2020. "When we plan and finance infrastructure projects, we have to ensure their consistency with" national emissions targets, says Monica Scatasta, the EIB's head of environmental, climate and social policy. Because infrastructure is built for the long-term, projects have to be examined to be sure that they'll stand up to changes in climate over many years to come.