At the 4th G20 Finance Ministers and Central Bank Governors (FMCBG) meeting in Washington DC on 12-13 October 2022, The G20 Ministers and Governors agree to endorse the G20/GI Hub Framework on How to Best Leverage Private Sector Participation to Scale Up Sustainable Infrastructure Investment.
The G20 has emphasized the critical role of sustainable infrastructure to recover from the post-covid-19 pandemic and to achieve a sustainable agenda. Since infrastructure plays a significant responsibility in exacerbating greenhouse emissions, scaling up sustainable infrastructure investment is essential. The pandemic has also made countries experience unprecedented fiscal impact and forced them to focus limited resources on areas that need more attention, while the challenges to achieve sustainable infrastructure at speed and scale urgently need to be addressed. In this context, leveraging private sector participation is critical to mobilize investment into sustainable infrastructure and help overcome the substantial gap.
As mentioned by Chair Minister Sri Mulyani Indrawati during 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. The multi-year action is expected to guide our shared effort in the years to come. The Framework does not recommend new standards for sustainable infrastructure investment or new targets related to climate change and builds to be complementary to existing global efforts. Four pillars and eight actions are identified in the Framework that can be adopted pragmatically while considering country circumstances:
- Pillar 1: Long-term national infrastructure priorities and targets
- Pillar 2: Definitions and data for sustainable infrastructure
- Pillar 3: Enabling environment for implementation
- Pillar 4: Financial and technological innovation
This flagship priority under the Indonesian 2022 G20 Presidency complements and continues the prior years IWG initiatives, including the Roadmap to Infrastructure as an Asset Class, the Quality Infrastructure Investment Principles, the contributions to the G20 Action Plan – Supporting the Global Economy Through the COVID-19 Pandemic, as well as the G20 Report on the Collaboration with Institutional Investors & Asset Managers on Infrastructure (2020). Beyond the IWG agenda, this Framework also aligns with the G20 Sustainable Finance Roadmap (2021).
In addition to the members-led process and extensive engagement with key stakeholders, including within the 2021 and 2022 G20 Infrastructure Investors Dialogue, the development of the Framework also has been supported by a number of inputs:
- GIF-World Bank Stocktake of Approaches that Leverage Private Sector Investment in Sustainable Infrastructure
- OECD Report on Advancing the Environment and Data for Sustainable Infrastructure Financing
- GI Hub Report on Infrastructure Transition Pathways
- Outcome Document from the 2022 G20 Infrastructure Investors Dialogue
The G20 appreciates the GI Hub for its support in developing the Framework, which will support the G20 and other relevant stakeholders to revitalize infrastructure investment in a sustainable, inclusive, accessible, and affordable way. The G20 also thanks GIF and OECD for their support in developing inputs to the Framework.
The full PDF version of the documents can be accessed here:
- The G20/GI Hub Framework on How to Best Leverage Private Sector Participation to Scale Up Sustainable Infrastructure Investment: [Link Here]
- GIF-World Bank Stocktake of Approaches that Leverage Private Sector Investment in Sustainable Infrastructure: [Link Here]
- OECD Report on Advancing the Environment and Data for Sustainable Infrastructure Financing: [Link Here]
- GI Hub Report on Infrastructure Transition Pathways: [Link Here]
- Outcome Document from the 2022 G20 Infrastructure Investors Dialogue: [Link Here]
