G20 endorses G20/GI Hub framework on how best to leverage private sector engagement to develop sustainable infrastructure
At the 4th Meeting of G20 Finance Ministers and Central Bank Governors (FMCBG) in Washington DC on October 12-13, 2022, G20 Ministers and Governors agree to endorse the G20/GI Hub Framework on best way to leverage private sector participation to scale up sustainable development. Investment in infrastructure.
The G20 highlighted the essential role of sustainable infrastructure in recovering from the post-covid-19 pandemic and in achieving a sustainable agenda. Given that infrastructure plays a significant role in exacerbating greenhouse gas emissions, it is essential to increase investment in sustainable infrastructure. The pandemic has also given countries an unprecedented fiscal impact and forced them to focus limited resources on areas that need more attention, while the challenges of building sustainable infrastructure at the speed and ladder must be raised urgently. In this context, leveraging private sector participation is essential to mobilize investment in sustainable infrastructure and help close the substantial gap.
As Minister President Sri Mulyani Indrawati mentioned at the 4th FMCBG meeting, the voluntary and flexible framework is an important first step that will enable the G20 to facilitate private sector investment in sustainable infrastructure. Multi-year action should guide our joint efforts in the years to come. The framework does not recommend new standards for investment in sustainable infrastructure or new targets related to climate change and is intended to be complementary to existing global efforts. Four pillars and eight actions are identified in the framework that can be adopted pragmatically while taking into account national circumstances:
- Pillar 1: Long-term national infrastructure priorities and objectives
- Pillar 2: Definitions and Data for Sustainable Infrastructure
- Pillar 3: Enabling environment for implementation
- Pillar 4: Financial and technological innovation
This Flagship Priority under Indonesia’s G20 Presidency 2022 complements and builds on previous years’ GTI initiatives, including the Infrastructure Asset Class Roadmap, Quality Infrastructure Investment Principles, contributions to the G20 action plan – Supporting the global economy through COVID-19. 19 Pandemic, as well as the G20 Report on Working with Institutional Investors and Asset Managers on Infrastructure (2020). Beyond the GTI agenda, this framework also aligns with the G20 Roadmap for Sustainable Finance (2021).
In addition to the member-driven process and extensive engagement with key stakeholders, including through the 2021 and 2022 G20 Infrastructure Investors Dialogue, the development of the framework has also been supported by a number of contributions:
- GIF-World Bank Review of Approaches that Leverage Private Sector Investments in Sustainable Infrastructure
- OECD report on promoting the environment and data for sustainable infrastructure financing
- GI Hub Report on Infrastructure Transition Pathways
- 2022 G20 Infrastructure Investors Dialogue Outcome Document
The G20 appreciates the GI Hub for its support in developing the framework, which will help the G20 and other relevant stakeholders revitalize infrastructure investment in a way that is sustainable, inclusive, accessible and affordable. The G20 also thanks the GIF and the OECD for their support in developing contributions to the Framework.
The complete PDF version of the documents can be accessed here:
- The G20/GI Hub framework on how best to leverage private sector engagement to scale up investments in sustainable infrastructure: [Link Here]
- GIF-World Bank review of approaches that leverage private sector investment in sustainable infrastructure: [Link Here]
- OECD Report on Promoting Environment and Data for Sustainable Infrastructure Financing: [Link Here]
- GI Hub report on infrastructure transition pathways: [Link Here]
- 2022 G20 Infrastructure Investors Dialogue Outcome Document: [Link Here]