Infrastructure for a climate-resilient future
The report outlines the critical role of climate-resilient infrastructure in addressing the increasing impacts of climate change. It emphasises the need for integrated planning, financing, and the adoption of nature-based solutions to enhance infrastructure resilience. The report also highlights the economic benefits and policy recommendations for building robust infrastructure systems globally, especially in developing countries.
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OVERVIEW
The report highlights critical strategies to enhance infrastructure’s resilience to climate change. Key areas include addressing the climate resilience gap, planning, financing resilient infrastructure, and leveraging nature-based solutions (NbS). Below is a structured summary based on the report’s chapters.
Closing the climate resilience gap in infrastructure
The report emphasises that infrastructure is increasingly vulnerable to climate change. Climate events such as floods and storms disrupt infrastructure systems, creating ripple effects across economies, communities, and ecosystems. The rationale for climate-resilient infrastructure lies in its capacity to withstand and recover from climate impacts. The report estimates that global infrastructure investments of USD 6.9 trillion annually by 2030 will be needed to meet the Sustainable Development Goals (SDGs) and support climate resilience.
Planning for climate-resilient infrastructure
Coordination is critical between public and private infrastructure providers to integrate resilience into planning and development. The report suggests adopting long-term plans, such as regional masterplans, that incorporate climate considerations. Effective capital budgeting mechanisms should be established to incentivise resilience in infrastructure investments. Key recommendations include using data and innovative techniques for asset monitoring and maintenance, helping ensure infrastructure systems meet resilience standards.
Unlocking finance for climate-resilient infrastructure
The report acknowledges a significant financing gap for resilient infrastructure, particularly in developing countries. Public and private finance must be mobilised to address the risks associated with climate impacts. A blended finance approach, which combines public and private funds, is essential for de-risking investments. The report also recommends mainstreaming climate resilience into investment decisions by encouraging transparency and physical risk disclosure in project reporting.
Harnessing Nature-based Solutions for climate-resilient infrastructure
NbS offer cost-effective and adaptable methods to enhance infrastructure resilience. Solutions such as mangrove restoration or urban wetlands provide both environmental and social co-benefits, such as protecting against floods while supporting biodiversity. The report outlines the economic advantages of NbS compared to traditional “grey” infrastructure. Scaling up NbS requires creating an enabling policy environment and addressing barriers such as outdated technical standards and limited access to finance.
Making infrastructure climate resilient in developing countries
Developing countries face disproportionate challenges related to infrastructure vulnerability. The report calls for international collaboration to build institutional capacity, transfer technologies, and provide financial assistance to these nations. Social equity considerations are paramount, as inadequate infrastructure often affects vulnerable and marginalised communities the most. Governments are urged to prioritise climate-resilient infrastructure through policies that address social inclusion and risk reduction.
Building climate-resilient infrastructure with regions and cities
The report emphasises the critical role of regional and local governments in building resilient infrastructure. These governments are responsible for planning and delivering much of the required infrastructure and must adopt a place-based approach to resilience. Multi-level governance structures are necessary to align climate resilience efforts across national, regional, and local levels. Additionally, subnational governments need appropriate financing mechanisms to unlock climate finance and address local climate risks.
The report provided policy insights to ensure infrastructure resilience in the face of climate change:
- Integrate climate resilience into all stages of infrastructure development, including planning, financing, and maintenance.
- Update regulatory frameworks to incentivise climate-resilient investments and establish clear standards.
- Mobilise private sector financing through mechanisms such as blended finance to address infrastructure funding gaps.
- Encourage the use of Nature-based Solutions (NbS) to provide cost-effective, adaptable infrastructure resilience.
- Promote innovation and flexibility in infrastructure design to adapt to evolving climate risks.
- Enhance international collaboration and capacity building, particularly for developing countries, to support global infrastructure resilience efforts.
Actions to take
ESG issues
SASB Sustainability Sector
Finance relevance
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RELEVANT LOCATIONS
RELATED TAGS
- blended finance
- climate change adaptation
- climate resilience
- developing countries
- environmental sustainability
- extreme weather events
- infrastructure financing
- infrastructure investment
- infrastructure planning
- infrastructure systems
- nature based solutions
- regulatory frameworks
- resilient infrastructure
- risk management
- sustainable infrastructure