Emerging markets and developing economies (EMDEs) need to invest $1.5 trillion annually—equivalent to 4.5% of GDP—to achieve Sustainable Development Goals (SDGs) and climate targets. Despite increasing investments in dollar terms, the share of infrastructure investment relative to GDP has stagnated. More innovative financing solutions are needed to catalyzing private investment into sustainable infrastructure and further close the infrastructure gap estimated at US$ 0.7 trillion annually.
To overcome these challenges and mobilize private capital at scale for infrastructure in emerging markets, there is a need to facilitate the intermediation of institutional savings into bankable infrastructure projects, leveraging or scaling up government-supported pooled investment vehicles (PIVs) for sustainable infrastructure. Achieving this will require a multi-faceted approach to address key barriers to the operationalization of these vehicles, including strong and stable macro-financial policies, robust institutional frameworks, the development of well-structured bankable pipelines of projects, and the expansion of financing, credit enhancement and risk mitigation solutions.
The event focused on fostering an enabling environment for optimizing these vehicles, highlighting successful models and best practices. C-level executives and directors from international commercial banks and institutional investors across emerging and developed markets shared their perspectives.