[ad_1]
IInfrastructure structures play a vital role in addressing climate change and diverse societal needs. What communities build and how they build can impact the world’s progress in combating climate change and building inclusive societies for all. Investments in sustainable infrastructure, such as the electrification of public transport, are fundamental to the transition towards a future with cleaner energy sources. Additionally, reliable infrastructure such as public transportation and essential public facilities can significantly improve a community’s standard of living.
While the sustainable infrastructure asset class undoubtedly has notable benefits, it continues to face challenges as it matures. Sustainable infrastructure projects often have large initial capital requirements, a lack of standardized guidelines, and the fact that many promising sustainable technologies are still in the development stage. there is. Additionally, sustainable infrastructure projects are under pressure to address the challenge of greenwashing, which can mislead investors and the public about the actual environmental impacts of infrastructure projects.
Overview of sustainable infrastructure at both global and EU level
As countries around the world focus on net-zero emissions commitments, a global shift towards cleaner and greener infrastructure investment is highlighted. Complementing these efforts are new regulatory requirements and mechanisms for integrating environmental, social, and governance (ESG) parameters. Such factors promote sustainable development and reduce dependence on fossil fuels.
It is estimated that $139 trillion will be needed in infrastructure development around the world to reach net zero by 2050
The visual representation above analyzes how our sustainable future depends on the global infrastructure investment industry. Much of this investment will be directed towards the development of new physical assets in the energy sector, including grid infrastructure and renewable energy generation.
The global infrastructure sector has significant growth potential, as approximately 75% of the world’s infrastructure in 2050 is yet to be built. Coinciding with this expansion, the global green infrastructure industry is expected to surge, expected to reach €10 trillion by 2030.
Infrastructure asset classes (such as AIFs) are subject to EU regulations including, but not limited to, the Sustainable Finance Disclosure Regulation (SFDR) and the EU Taxonomy. The importance of these regulations is clear when you consider that infrastructure accounts for 79% of global greenhouse gas emissions and 88% of climate change adaptation costs. There is a clear correlation between infrastructure and reducing carbon emissions. Therefore, there is a need to increase the transparency of sustainability reporting in this area.
Regulatory framework for environmental responsibility
To ensure that the environmental impact of the infrastructure sector is fairly considered, the first regulatory standard to highlight is SFDR. The purpose of SFDR is to clarify ESG disclosures, provide guidance on the methodologies in place, and ensure that the presentation of information is standardized. Therefore, infrastructure assets classified under Article 8 (relating to products that promote environmental or social characteristics) or Article 9 (relating to products intended for sustainable investment) of the SFDR are classified as Level 2 Required. Must be reported according to Technical Standards (RTS). Refers to detailed rules that provide guidance on how to implement SFDR requirements. The RTS specifies the technical aspects and standards that infrastructure assets falling under Article 8 or 9 must comply with regarding sustainability reporting.
Second, the EU Taxonomy is a classification system established by the European Union to classify environmentally sustainable activities. We aim to direct investments towards environmentally sustainable activities while preventing greenwashing. In areas such as green infrastructure, taxonomies can prove important as they provide indicators for assessing the environmental sustainability of infrastructure investments. In doing so, the EU Taxonomy will help investors, companies and policy makers identify their true contribution to environmental goals. Extending the specific application of the EU Taxonomy, one example is electric mobility projects. Within the framework of the taxonomy, e-mobility initiatives, including electric vehicle (EV) infrastructure and charging networks, are closely evaluated against defined environmental criteria. The indicators provided by the taxonomy allow investors, companies and policy makers to assess not only the reduction of carbon emissions from conventional vehicles, but also the overall positive impact on air quality and urban sustainability. can do. As investors seek opportunities in e-mobility projects, the EU taxonomy serves as a powerful tool, ensuring funded initiatives reduce greenhouse gas emissions, promote cleaner air, and foster sustainable urban development. ensuring that it truly contributes to broader environmental goals.
The SFDR and EU Taxonomy regulatory frameworks therefore play a key role in ensuring accountability, providing clarity and ultimately fostering the growth of sustainable infrastructure asset classes.
Luxembourg’s stance on sustainable infrastructure
Renowned for its investment services, Luxembourg is expecting an increase in green investments, especially funds focused on green infrastructure. This underlines Luxembourg’s role in the exceptional growth of this sector.
The Coalition Agreement (2023-2028) entitled “Strengthening Luxembourg for the Future” outlines ambitious initiatives and measures to strengthen Luxembourg’s position economically and sustainably. We recognize that infrastructure plays a key role in moving Luxembourg to a sustainable, low-carbon future. The commitments set out within the agreement document Luxembourg’s roadmap towards economic recovery through sustainable development.
Integrated territorial planning and biodiversity conservation
The Government has outlined plans to develop a new model for ‘greening public spaces’ in cities and towns under a coalition agreement. Projects related to green cities provide solutions for climate mitigation. These technologies include natural cooling and measures to increase biodiversity within urban areas. Furthermore, these green spaces provide adaptive solutions to climate change by implementing mechanisms to cope with extreme weather events such as floods, storms, and heat waves. Green infrastructure and “greening of public spaces” thus serve the dual purpose of contributing to climate change mitigation and adaptation.
Additionally, the coalition agreement outlines the 2035 Spatial Planning Master Program, which will define the future direction of the country’s territorial development between 2035 and 2050. The program consists of concentrating territorial development in the right places, reducing land artificialization and strengthening cross-border territorial cooperation. .
Energy transition and renewable energy:
Additionally, the coalition agreement also outlines steps to encourage energy efficient retrofits within the housing sector by extending and adapting existing subsidies to encourage energy efficiency efforts among residents. Masu. The initiatives outlined are in line with the goal of reducing the environmental footprint of residential buildings. Such efforts can also result in significant cost savings for homeowners. The focus on energy efficiency throughout the Coalition Agreement highlights the Government’s aim to strengthen energy infrastructure across the country.
The government has further outlined its ambitions in a coalition agreement on renewable energy projects. Developing renewable energy infrastructure is a national priority for the government. Accordingly, approval timelines for sustainable energy projects will be shortened. Additionally, the government will consider the possibility of removing building permit requirements for solar installations in residential buildings. Tenders will be launched for large-scale energy projects in an effort to expand renewable energy development at the national level. The Government will continue to invest in energy projects at international level, such as offshore wind farms, solar farms in southern Europe and hydrogen production projects.
Revolutionizing mobility and transportation:
The government has committed to making all public transport neutral on greenhouse gas emissions by 2030. Efforts are also being taken to strengthen Luxembourg’s current rail and tram transport infrastructure and to ensure that public transport infrastructure offers efficient, reliable and sustainable alternatives. , which has the knock-on effect of reducing both traffic congestion and air pollution. Additionally, the government will analyze the current General Road Transport Regime (RGTR) network with the overarching goal of completely revising public transport timetables while optimizing transport availability in rural areas. Explaining your ambitions. Finally, cycleways will be strengthened to ensure a national cycling network that is accessible to all.
Such commitments highlight countries’ moves towards decarbonisation, while underscoring proactive steps by governments in promoting sustainable urban mobility. The Government has a clear commitment to linking socio-economic progress with sustainable infrastructure investment.
Luxembourg is known worldwide for its wide range of investment services and is an active participant in the global expansion of green investments, particularly in the emerging field of green infrastructure. The coalition agreement emphasizes Luxembourg’s commitment to infrastructure as a catalyst to lead the country towards a low-carbon future, and supports the country’s significant commitment to align with the global trend of green infrastructure growth. It reflects the effort. This transition is about more than just infrastructure investment. It represents an innovative approach to building a sustainable future. On the one hand, this ambitious initiative offers an excellent opportunity for private investors such as infrastructure equity and fixed income asset managers, pension funds and insurance companies to navigate Luxembourg’s infrastructure landscape.
[ad_2]
Source link
