Working Paper: Financing for Disaster and Climate Resilient Infrastructure for a Net-Zero Economic Transition – The Case of Transport Infrastructure
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The crux of the world’s built ecosystems is to deliver and maintain infrastructure that is efficient and resilient to climate change and other natural disasters, to underpin economic activity, but also sustainable, so that it is not harmful to the environment. Infrastructure resilience and sustainability can be achieved by design and/or by intervention. The financial impacts of natural and human-induced disasters grow, and as a result, national and state finances continue to deplete. Therefore, the burden for risk reduction, resilience, and net-zero transition is increasingly transferring from the public to the private sector. However, there is an acknowledged lack of private finance to fill this gap, while international financing bodies prioritise infrastructure interventions over design and preparedness and general resilience-based design. This is a capability gap and, as a result, the private sector with larger financial resources, such as international companies and financial institutions, are unclear whether or how these resilience-building activities are of commercial relevance and direct impact to them. This position paper will identify the enablers of and barriers to climate-resilient and sustainable infrastructure, aiming to quantify the trade-offs and synergies between climate resilience and sustainability in infrastructure development and adaptation. |