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D20 Long-term Investors Club (D20-LTIC) and EIB continue cooperation on leveraging private sector participation in sustainable infrastructure investment

Accelerating the transition to carbon-neutral economies by attracting private investments in sustainable, green, and climate resilient infrastructure was at the top of the agenda of the G20 Infrastructure Investors Dialogue held today on the margins of Group 20 Finance Ministers and Central Bank Governors Meeting in Denpasar, Indonesia. The event was co-organised by the D20-Long-Term Investors Club (D20-LTIC), OECD and Global Infrastructure Hub. EIB President Hoyer is co-chairman of the D20-LTIC.

EIB Vice President Kris Peeters attended the Dialogue and contributed in the high-level opening roundtable discussion organized with the support of Indonesian presidency of the Group 20 to engage private and public investors in identifying the most efficient solutions to increase globally investment in sustainable infrastructure.

EIB Vice-President Kris Peeters said:  “The role of infrastructure in achieving SDGs and the climate goals under the Paris Agreement could not be more crucial. With the looming infrastructure gap, and limited fiscal space faced by many countries in the aftermath of the COVID pandemic and in view of the wider repercussions from the war in Ukraine, private sector participation in infrastructure development is indispensable if we want to close the infrastructure investment gap. It is a challenging and long-term objective, requiring visibility of the investment pipeline, thorough project preparation and clarity on business models. The recent activities by the G20 and its heavy focus on sustainable infrastructure themes are much welcome in this respect and the EIB will work though EIB Global to support identifying efficient solutions for these challenges.”

Indonesia`s Finance Minister Sri Mulyani Indrawati and Italy`s Finance Minister Daniele Franco opened the G20 Infrastructure Investors Dialogue, followed by Mathias Cormann, OECD Secretary-General who also spoke at the event. List of contributing speakers included also Perry Warjiyo, Governor of Bank Indonesia, and Nirmala Sitharaman, Minister of Finance and Corporate Affairs of India.

Unlocking more investment in sustainable infrastructure

Investments in sustainable infrastructure will play a critical role in both catalysing the COVID-19 recovery and putting countries on the right path to meet their climate objectives under Paris Agreement. Developed nations have pledged USD 100 billion to support this transition in developing countries. Majority of these investments will to go towards the development of appropriate infrastructure, resulting in rising interest from the investor community whose involvement will be crucial for matching the investment needs.

International cooperation on meeting the goals of the Paris Agreement is particularly important to ensure more standardised and clear approaches, and the G20 has been committed to facilitating this transition.

Towards more bankable sustainable infrastructure projects

The Dialogue also addressed the rising need of emerging and developing countries’ (EMDEs) for more sustainable infrastructure, as well as the need to provide clear information and analysis on the environmental, social, and governance (ESG) and Sustainable Development Goals (SDGs) impacts of proposed infrastructure projects. Participants discussed solutions for overcoming structural barriers to investment, and ensuring governments’ capacity to create a pipeline of quality infrastructure projects suitable for private investment.

The G20 is currently developing an action-oriented list of recommendations for the governments to ensure they can attract more private investment in sustainable infrastructure, supported by the D20 LTIC.

D20-LTIC - Driving economic development and sustainable growth

The D20-LTIC works within the framework of the Group of 20 (G20) to promote the role of long-term finance in driving economic development and sustainable growth around the world.  EIB President Hoyer has chaired or co-chaired the D20 LTIC since 2018, together with Dr. Ibrahim Almojel, Chief Executive Officer of the Saudi Industrial Development Fund (SIDF).

D20 LTIC now consists of 25 organizations including long-term investors like the EIB, the German and Italian national promotional banks KfW and CDP, Saudi SIDF and other major financial institutions financing economic development, sovereign wealth funds, pension funds, public retirement funds and insurance funds.