Special Session – Climate Toolkits for Infrastructure PPPs
Global Climate Head for PPP Advisory, IFC
Senior Investment Specialist, World Bank
Infrastructure Climate Consultant, World Bank
Climate change is one of the gravest global concerns as it is increasingly challenging the ability of governments to mitigate climate impacts that are already impacting their populations. At the same time, impactful climate action will require immense resources to fund transformational projects that reduce greenhouse gas emissions. It requires bold action and political will, including shifting incentives away from fossil fuels and mainstreaming climate and disaster risks. Exacerbated by COVID-19 recovery efforts, governments are increasingly unable to foot the bill to address climate mitigation and adaptation concerns through the development of low carbon and climate resilient (LCR) infrastructure development, underscoring the need for private sector participation (PSP) to bridge the funding gap. As such, to meet growing infrastructure demand, both public and private sectors will need to invest heavily in a new LCR infrastructure.
Whilst there have already been efforts to evaluate climate risks of potential LCR infrastructure PSP investments, recent data shows that this is generally done in an ad hoc manner with inconsistent screening and evaluation criteria. To address this gap, the Climate Toolkits for Infrastructure Private public Partnerships (CTIP3) has been developed to allow users to screen for climate risks, embed climate mitigation and adaptation considerations, thereby facilitating increased PSP investment in LCR infrastructure in emerging markets and developing economies. Designed for application in the upstream and midstream stages of the PPP lifecycle, the toolkits are outfitted for practical implementation, including checklists, example TORs, score sheets and other implements to help its users assess the enabling environment and broader institutional capacity in a given country and enable climate considerations to be integrated into potential PPP projects.
This 90-min technical session is aimed at raising awareness of this toolkit through a brief set of presentations and a round table to discuss its scope, features, caveats and limits of applications and functionality. The technical session will cover the increasingly important role of public and private sector engagements in delivering climate resilient infrastructure and what it would take to shift towards more climate-conscious PPPs; highlight the set of World Bank tools aimed at supporting client governments in this effort; and identify entry points to incentivize PPP practitioners on ways to integrate climate change and climate risk considerations in the PPP strategies, pipelines and projects.