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Sustainable infrastructure investment
What is sustainable infrastructure investment and how does it link to quality infrastructure investment and finance?
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Infrastructure race: President Joko “Jokowi” Widodo (third from right) inspects a section of a toll road construction project in Bogor, West Java, during a recent visit. (JP/Ayomi Amindoni)
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nfrastructure investment needs are high on the global development agenda as the realization of the funding requirements depends not only on each country’s financing capacity but also on multilateral cooperation with other countries or international agencies.
Sustainable and quality infrastructure investment are two sides of the same coin. Quality infrastructure investment can facilitate the achievement of the Sustainable Development Goals (SDGs), which are part of the global development commitments.
What is sustainable infrastructure investment and how does it link to quality infrastructure investment and finance? To quote the Report of the Global Commission on the Economy and Climate 2016, sustainable infrastructure is infrastructure that is socially, economically and environmentally sustainable. The report describes the three pillars of sustainable infrastructure investment as follows:
Socially sustainable infrastructure is inclusive — it serves all, not just a select few — and contributes to enhanced livelihoods and social wellbeing. It may be expressly designed to meet the needs of the poor by increasing access to basic services such as clean energy, water and sanitation by supporting poverty reduction, and by reducing vulnerability to climate change.
Economically sustainable infrastructure does not burden governments with unpayable debt, or impose painfully high costs on users. It helps create jobs and boosts gross domestic product (GDP), and may include opportunities to build capacity among local suppliers and developers and strengthen livelihoods.
Environmentally sustainable infrastructure limits all types of pollution during both construction and operation, and supports the conservation and sustainable use of natural resources.
It contributes to a low-carbon, resource-efficient economy, for example, through energy- and water-efficiency. It is resilient to climate risks such as sea-level rise and extreme weather events, and — particularly with natural infrastructure — can also increase resilience.
