Building coalitions to enable greener and smarter infrastructure development at scale

PwC Indonesia facilitates B20-G20 dialogue for Finance and Infrastructure Task Force

Bali, 14 July 2022 - According to a PwC report entitled 'Global Infrastructure Trends', the urgent global need for substantial infrastructure has been widely recognised. For populations worldwide, upgrades or new infrastructure will be critical in the future. Thus, it is known that the total global demand for infrastructure investment is estimated at US$3.9 trillion per year, with the largest demand being in emerging markets. 

The B20 Finance and Infrastructure Task Force, which comprises global business leaders, and  PwC Indonesia as Knowledge Partner have taken this opportunity to organise a dialogue forum with the G20 Finance Ministers with the theme “Building coalitions to enable greener and smarter infrastructure development at scale”. This forum aims to communicate the four policy recommendations that have been produced and to find the best way to implement those policy recommendations to promote greater impact.

Chair of the Finance & Infrastructure Task Force/CEO of INA Ridha Wirakusumah said, “The task force had formulated four policy recommendations that would be discussed together before being submitted to the G20 Summit.”

He stated, “Four recommendations were put forward and formulated by the Finance & Infrastructure Task Force.  First, improve access to affordable and suitable sources of financing. Second, drive collaboration between countries to accelerate a just transition towards a net-zero world. The third recommendation, accelerate the development and adoption of digital and smart infrastructure and the fourth, improve global financial services regulation to achieve improved balance between growth, productivity and stability.”

Radju Munusamy as Policy Manager for the Finance and Infrastructure Task Force and Partner at PwC Indonesia mentioned that “Public funds are limited and are especially constrained due to the effects of the COVID-19 pandemic. More than ever, private sector capital, which is available in much greater volume than public finance, is required to finance infrastructure projects and help narrow the infrastructure gap. As the B20 Finance and Infrastructure Task Force, representing the voice of the business community, we have tried to assess and understand the issues, and provide policy recommendations to improve the situation, looking at mutually beneficial solutions for both developed and developing countries.”

Furthermore, Julian Smith as B20 Finance and Infrastructure Task Force Knowledge Partner Team Leader and Infrastructure Leader at PwC Indonesia said that “Achieving the goal of a just transition towards a net-zero world will demand a different approach to infrastructure planning in order to build low-carbon, climate-resilient and sustainable projects at scale. It will also require collaboration between countries to accelerate the transition to more sustainable forms of power — an area where great progress is being made, but more needs to be done — and a reimagining of transport, including ‘smart mobility’ in urban environments designed to ease congestion and smooth travel flows while also helping to reduce harmful emissions. It is important to ensure that the climate transition is “just” by supporting those who stand to lose economically from decarbonisation”.

Ultimately, closing the infrastructure gap and accelerating progress towards greener, smarter infrastructure will require interventions and collaborative action from multiple participants. The Finance and Infrastructure Task Force has aimed to develop policy recommendations that allow for greater collaboration between governments, multilateral institutions, and the private sector, while also considering the different needs and characteristics of the different countries within the G20 to achieve mutually beneficial outcomes. These overlapping considerations mean the task of closing the infrastructure gap is arguably one of the largest and most complex challenges that the global financial and political system has ever faced. However, it is a challenge that must be overcome.