Advising on infrastructure to benefit communities and the environment
PwC helps you deliver sustainable, resilient and inclusive capital projects and infrastructure in an uncertain world.
Infrastructure is critical to achieving the world’s climate goals. According to the United Nations Office for Project Services (UNOPS), approximately 80% of the world’s current greenhouse gas emissions come from infrastructure.
Our clients—whether they are policymakers, construction contractors, financiers or corporates—have a critical role to play in delivering and maintaining sustainable, resilient and inclusive infrastructure. We understand the unique challenges of your industry, and are ready to help you manage these challenges and capture the opportunities that change brings.
Helping to shape the future of infrastructure
Recent events are having a real impact on infrastructure investment and delivery, creating both challenges and opportunities. The biggest factors driving change include increasing technology adoption, the urgent need for sustainability and growing requirements for operational resilience and security.
The green transition
BNP Paribas estimates that 70% of the increase in future greenhouse gas emissions will come from infrastructure that hasn’t yet been built. Infrastructure investment needs to focus on reducing carbon consumption by pivoting from fossil fuels to renewables and alternative fuels. It should also provide incentives for greener construction methods and promote environmentally friendly modes of transport.
Another factor to consider is ‘just transition’ costs, such as compensation of displaced workers and workforce reskilling.
Facing increased pressure from stakeholders, many infrastructure investors are strengthening their environmental, social and governance (ESG) focus, and looking to invest in environmentally sustainable assets. In addition, several standards and frameworks have emerged to integrate climate-related factors into investment decisions and redirect capital to more sustainable projects. As ESG reporting becomes more mainstream and policy pressure increases, expect growing demand for such assets.
How we can help
Around the world, we help our clients plan, finance, manage and deliver large-scale capital projects and infrastructure. Combining engineering, technology, industry and finance experience and knowledge, our teams work with companies throughout the full lifecycle of their capital projects. Our clients are from both the public and private sectors and include investors, contractors, owners, shareholders and users.
- Financing sustainable infrastructure
- Climate reporting and infrastructure planning
- Optimising tech opportunities
- Creating sustainable value
Financing sustainable infrastructure
Many countries have long underinvested in infrastructure and must now also repay increased debt accrued during the COVID-19 pandemic. Infrastructure projects will need to be affordable for taxpayers and users, and will need to be stable, or investors won’t be interested in financing them.
Private capital remains plentiful, and regulations and reporting requirements are driving the availability of sustainable financing products. But a majority of infrastructure capital has yet to be invested as investors look for lower-risk opportunities. More private finance is particularly needed in emerging markets. This creates challenges around how to make projects investable and how to create income sources to repay private capital, particularly for climate resilience projects.
PwC can help clients design incentivisation and commercial models and public-private partnerships (PPPs) to help overcome these challenges. We can also help prepare investable projects and finance using a range of financing methods, such as PPPs or blended finance.
