Sustainable Infrastructure Alliance (SIA)

Sustainable Infrastructure Alliance (SIA)

Mainstreaming sustainable and resilient infrastructure is one of today’s greatest challenges: 75% of the infrastructure needed by 2050 does not exist today. Infrastructure project lifecycles often exceed 100 years, impacting the sustainability profile of countries and regions for generations. By 2030, an estimated USD 60 trillion in new infrastructure assets will be needed, more than the current value of the world’s entire existing stock of infrastructure. Roughly 60 to 70 percent of global infrastructure investments until 2050 will be made in emerging markets.

This presents an opportunity to create valuable and futureproof assets, especially in rapidly growing countries such as China, India and Indonesia. The global sustainability agenda will affect the way we build infrastructure. The Paris Agreement and the United Nations Sustainable Development Goals (SDGs) have set the tone for the future: sustainability-related change will affect the business model of nearly all industries. For the infrastructure sector, this means changing the way projects are planned, financed, built, operated and decommissioned. Tightening regulations on a national and international level constitute a major risk for infrastructure projects, while climate change exacerbated extreme weather events, such as droughts, rising sea level, storms, heatwaves and floods pose an additional threat.

Risk resulting from regulatory changes and environmental threats can be mitigated by investing in sustainable infrastructure today, thus preventing additional operating costs. At the same time, certification reduces environmental and regulatory risk while increasing opportunities for improved financing conditions.

Objective

The Sustainable Infrastructure Alliance (SIA) brings sustainable infrastructure and its certification into mainstream practice. Our vision is that such certification will help enable a sustainable future for those who use, own, and invest in infrastructure.

Approach

The SIA is structured in four workstreams:

  1. Creating Incentives: The SIA strives to jointly develop the business case for sustainable infrastructure with its stakeholders. Specifically, the SIA will engage with financiers, project developers, and the public sector to identify the tangible economic benefits of considering Environmental Social Governance (ESG) factors in infrastructure project lifecycles.
  2. Upgrading the ESG profile of infrastructure projects: The SIA will identify infrastructure projects to undergo a sustainability assessment. Based on these assessments, the SIA will develop recommendations and carry out capacity building to upgrade the ESG profile of selected infrastructure projects.
  3. Building the market for national ESG certification: The SIA will select certification bodies in all three countries and provide training for these institutions to conduct audits in line with international sustainability standards. Certification bodies will then apply these standards to pilot projects in target countries.
  4. Research and knowledge transfer: The SIA will carry out research in the field of sustainable infrastructure. In addition, the SIA will develop a communication strategy to effectively transfer its knowledge to stakeholders.

Results

  • Jointly developed business case for sustainable infrastructure with project developers, investors, and public sector representatives
  • ESG assessments carried out on 9 infrastructure projects in China, India, and Indonesia
  • Pilot projects prepared for certification to international ESG standard

Highlights

Supported by

Implemented by

In Cooperation with

Contact

Anders Hove

Project Director

Sustainable Infrastructure Alliance
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH