How private capital can accelerate the green transition in marine and freshwater infrastructure.
Together with representatives from B Capital Partners and Swiss Re, IADC, CEDA, and Vital Ports explored what is needed in order to improve the connection between green-labelled funds and sustainable waterborne infrastructure projects. The report Financing of Sustainable Marine and Freshwater Infrastructure: A joint study to explore financing of green coastal, river and port projects, is based on the findings of the mutual working group, which discusses nine case studies. The main conclusion is that sustainable waterborne infrastructure solutions are available, have been tested and are economically viable. Private capital could help to accelerate the uptake of such solutions. The report is an important first step towards realising this and was presented at the 2021 Sustainable Development Impact Summit organised by the World Economic Forum.
One main conclusion is the need to clarify sustainable concepts and associated financial structures in order to introduce the topic to both the financial sector and the dredging community. But also to develop ideas on how to bring this to mainstream infrastructure investment asset classes. The report provides content for further dialogue to foster the uptake of green marine and freshwater concepts by private investors.
What authors and partners say:
“Marine and Freshwater Infrastructure is the collection of waterborne works at coastlines, estuaries, rivers, canals and in port areas. In general, such works provide flood protection or enable port development, urban development and navigability of waterways. In other cases these works serve to protect or restore nature and recreational areas”, says Arjan Hijdra, Managing Director of Vital Ports and one of authors to the report. “Both the Sustainable Marine and Freshwater Infrastructure sector and the Financial sector seek to scale up their green portfolio and it is quite obvious that synergy can be found in cooperation. However, both sectors are mutually unfamiliar with each other’s environment which hinders to capture this synergy right away. We believe that this dedicated report could help further engagement between these two sectors.”
“Our mission is to make the world more resilient. We believe that the insurance industry can play a major role in supporting sustainable marine and freshwater infrastructure to encourage more innovative projects and enable private investments” said Christian Wertli, Head Infrastructure Solutions at Swiss Re.
“Private capital requires standard, stable legal frameworks to ensure appropriate risk allocation and a safety net for proper business conduct. All of this is urgent, since more coastal protections are needed, due to rising sea levels because of climate change,” said Paolo Alemanni, Managing Partner at B Capital Partners.