OECD Report Urges Climate-Resilient Infrastructure Investment

In response to record global temperatures and the escalating frequency of climate-related disasters, a newly released OECD report emphasizes the imperative for governments to integrate climate resilience into infrastructure planning. The Infrastructure for a Climate-Resilient Future report underscores the profound impact of climatic events on various sectors, urging concerted efforts to mitigate vulnerabilities and minimize long-term costs.

Released during the OECD Infrastructure Forum, the report delineates the extensive ramifications of climatic disruptions on infrastructure, spanning electricity, communication, transport networks, and water and waste treatment systems. Developing countries bear the brunt of these challenges, often grappling with resource shortages and higher financing costs, says the organization.

At the forefront of recommendations is the call for governments to prioritize sustainable projects, thereby bolstering social and economic resilience. The report underscores the pivotal role of regional and local governments, responsible for a substantial portion of climate-significant public investments in OECD countries.

In alignment with commitments made at the recent UN Climate Change Conference (COP28), countries are urged to enhance infrastructure resilience by 2030. To achieve this, substantial investments are imperative. According to analyses by OECD, World Bank, and UN Environment, an annual infrastructure investment of US$6.9 trillion by 2030 is deemed necessary to align with the UN’s Sustainable Development Goals and the Paris Agreement.

Mathias Cormann, Secretary General, OECD, emphasized the transformative potential of strategic infrastructure investments. Cormann underscores the necessity of unlocking private investments, advocating for long-term project planning and effective risk-sharing mechanisms.

Highlighting the disproportionate vulnerability of developing nations, particularly Least Developed Countries (LDCs) and Small Island Development States (SIDS), the report stresses the urgency for international partnerships and increased resource mobilization by development banks. Moreover, the report advocates for the adoption of nature-based solutions, such as mangroves and coral reefs, as cost-effective measures to safeguard infrastructure assets against coastal floods and storm surges.