Sustainable infrastructure for the climate transition
We need robust climate transition plans for infrastructure
Climate transition plans are plans that articulate how a government or organisation will achieve its long-term climate commitments (such as Nationally Determined Contributions or NDCs, Paris agreement targets, or net zero pledges) by outlining policies and programs that will scale up sustainable investment.
The increasing urgency of the climate crisis has led governments and corporations globally to enhance their climate commitments. As a result of this increased commitment, more private finance is being driven into environmental, social, and governance (ESG) investments, which include sustainable infrastructure projects. To mobilise more private capital into sustainable infrastructure projects, governments need to provide clear and transparent climate transition plans for infrastructure, outlining how planned infrastructure investments will align with ESG standards and climate goals. These plans would provide the right market signals to investors and create greater confidence among investors to support future infrastructure development and investment priorities.
In 2022, the G20 asked the GI Hub to examine the current state of climate transition plans as it pertains to for infrastructure. It was found that, although all G20 economies had developed long-term infrastructure plans with some form of climate or SDG commitment, less than half of G20 plans analysed by the GI Hub included investment data, and less than half of plans mentioned how the private sector would be involved.
Through a large-scale research effort that examined global approaches to the climate transition and decarbonisation of infrastructure on behalf of the G20, the GI Hub has identified 15 strategies (transition pathways) that align infrastructure development and delivery with climate goals and SDGs.
See data on the transition pathways
The transition pathways below can be used by governments and industry to systematically plan for infrastructure development and investment to achieve climate targets and the SDGs. The pathways are not mutually exclusive, and several transition pathways can be applied to a policy, programme or project.
Infrastructure decarbonisation and mitigation strategies
These strategies reduce or eliminate carbon dioxide emissions and other greenhouse gases to create positive impacts on the environment, human health, and the economy.
Infrastructure transition pathways for decarbonisation and mitigation
| Transition pathway | Definitions and outcomes | Sectors |
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Increase the share of renewable energy |
Increasing renewable energy generation to decarbonise the energy sector, and transforming the electrical grid to support this transition Transformative outcomes: Low-carbon transition; pollution reduction; job creation and economic growth |
Sectors where investment is needed (in order of greatest need):
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Increase the share of low-emissions transport |
Increasing the uptake of zero-emissions vehicles, public transport, and active mobility to reduce fossil fuel combustion and tailpipe emissions Transformative outcomes: Low-carbon transition; pollution reduction; job creation and economic growth |
Sectors where investment is needed (in order of greatest need):
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Increase technological carbon removal |
Deploying carbon-capture technology to capture and store or re-use carbon dioxide emitted from large-point sources Transformative outcomes: Low-carbon transition; pollution reduction; job creation and economic growth |
Sectors where investment is needed (in order of greatest need):
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Manage the phase-down of high-emissions energy |
Managing the phase-down of high-emissions energy such as coal-fired power generation to reduce the energy sector’s emissions intensity Transformative outcomes: Low-carbon transition; pollution reduction; job creation and economic growth |
Sectors where investment is needed (in order of greatest need):
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Increase the operational efficiency of buildings |
Retrofitting, modernising, and sustainably operating buildings to optimise and reduce energy and water use Transformative outcomes: Low-carbon transition; pollution reduction; digital connectivity; job creation and economic growth |
Sectors where investment is needed (in order of greatest need):
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Reduce the carbon intensity of steel and cement production |
Using renewable energy, low-emissions fuels, or other greenhouse gas mitigation measures to reduce the emissions of steel and cement manufacturing, and reduce the embodied carbon of infrastructure Transformative outcomes: Low-carbon transition; pollution reduction; job creation and economic growth |
Sectors where investment is needed (in order of greatest need):
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Increase the share of renewable energy
Increase the share of low-emissions transport
Increase technological carbon removal
Manage the phase-down of high-emissions energy
Increase the operational efficiency of buildings
Reduce the carbon intensity of steel and cement production
Infrastructure resilience and adaptation strategies
These strategies help protect infrastructure, and the communities they serve, from the impacts of climate change.
Infrastructure transition pathways for resilience
| Transition pathway | Definitions and outcomes | Sectors |
|---|---|---|
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Increase resilience through structural interventions |
Building new physical structures, or changing the structure of existing infrastructure, to protect communities and the infrastructure itself against shocks and stresses Transformative outcomes: Disaster and climate change adaptation; social cohesion; job creation and economic growth |
Sectors where investment is needed (in order of greatest need):
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Increase resilience through ongoing risk management |
Actively managing, maintaining, and monitoring infrastructure to (a) detect, predict, and reduce the risk of failure and (b) improve its ability to respond to, and recover from, shocks and stresses Transformative outcomes: Disaster and climate change adaptation; social cohesion; job creation and economic growth |
Sectors where investment is needed (in order of greatest need):
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Restore land and water ecosystems |
Implementing nature-based solutions to restore and protect ecosystems in response to challenges such as climate change Transformative outcomes: Disaster and climate change adaptation; environmental regeneration; social cohesion; job creation and economic growth |
Sectors where investment is needed (in order of greatest need):
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Increase circularity and minimise raw material use |
Re-using, recycling, and recovering waste to minimise the use of critical materials across the infrastructure lifecycle to ensure critical material supply reliability and resilience Transformative outcomes: Circularity; environmental regeneration; pollution reduction; job creation and economic growth |
Sectors where investment is needed (in order of greatest need):
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Increase resilience through structural interventions
Increase resilience through ongoing risk management
Restore land and water ecosystems
Increase circularity and minimise raw material use
Strategies to increase the positive social impact of infrastructure
These strategies make infrastructure and infrastructure services more accessible, affordable, and to deliver a better standard of operation for all people.
Infrastructure transition pathways that deliver social impact
| Transition pathway | Definitions and outcomes | Sectors |
|---|---|---|
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Increase universal access to infrastructure |
Removing obstacles and barriers to infrastructure and infrastructure services to increase connectivity and inclusivity across communities Transformative outcomes: Affordability and access to services; job creation and economic growth; digital connectivity; digitalisation; social cohesion; disruptive innovation; inclusive mobility |
Sectors where investment is needed (in order of greatest need):
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Increase the affordability of infrastructure services |
Introducing policy measures and incentives to support the cost of infrastructure services Transformative outcomes: Affordability and access to services; job creation and economic growth; digital connectivity; digitalisation; inclusive mobility |
Sectors where investment is needed (in order of greatest need):
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Improve the standard of operation of infrastructure |
Upgrading and maintaining infrastructure to improve the standard of operation of infrastructure Transformative outcomes: Circularity; cyber-security; digital connectivity; digitalisation; pollution reduction; disaster and climate adaptation; social cohesion; disruptive innovation; job creation and economic growth; low-carbon transition |
Sectors where investment is needed (in order of greatest need):
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Increase universal access to infrastructure
Increase the affordability of infrastructure services
Improve the standard of operation of infrastructure
Infrastructure transition pathways that amplify the other pathways
| Transition pathway | Definitions and outcomes | Sectors |
|---|---|---|
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Scale up the adoption of InfraTech |
Applying new or innovative technology (material, machine, or digital) to infrastructure, to create a step-change in decarbonisation, resilience, or social impact and make it more cost-effective to build and operate Transformative outcomes: Disruptive innovation; digitalisation; low-carbon transition; pollution reduction; disaster and climate adaptation; social cohesion; job creation and economic growth |
Sectors where investment is needed (in order of greatest need):
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Increase the digitalisation of services |
Digitalising infrastructure and related government services to improve connectivity, efficiency, and quality of service from infrastructure Transformative outcomes: Digitalisation; disaster and climate adaptation, digital connectivity; disruptive innovation; job creation and economic growth |
Sectors where investment is needed (in order of greatest need):
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Scale up the adoption of InfraTech
Increase the digitalisation of services
How is the G20 supporting the achievement of climate goals through infrastructure?
The GI Hub’s work on infrastructure transition pathways began in 2022 in response to a request by the G20 Infrastructure Working Group (IWG), under the Indonesian G20 Presidency. The IWG asked the GI Hub to examine trends associated with the transition of infrastructure to achieve global climate targets and SDGs. We incorporated feedback from G20 members into our ongoing work on the infrastructure transition pathways, and this will include the government consultations and ongoing analyses we are currently undertaking. This work complements our InfraTracker, which tracks budgeted public investment in infrastructure in G20 economies and draws on the research we conducted on Transformative Outcomes through Infrastructure.
InfraTracker