Enhancing Financial Regulation of Green Infrastructure Investment
By Andreas (Andy) Jobst
The paper examines the critical need for enhanced financial regulation to support green infrastructure investment as climate action becomes increasingly pressing. It points out that infrastructure is responsible for more than two-thirds of global greenhouse gas emissions and that climate-related disasters lead to annual losses of nearly one percent of GDP, with poorer countries being disproportionately affected. Green infrastructure plays a crucial role in reducing carbon footprints through renewable energy and low-emission transport, as well as in bolstering socio-economic resilience against climate-related risks. However, there has been a secular decline in budgeted infrastructure spending over recent years. While most infrastructure is considered a public good but faces increasing fiscal constraints, attracting greater private participation requires improved financial regulatory frameworks to facilitate adequate green infrastructure funding from long-term investors, such as insurance companies and pension funds.
Source SSRN
