Asia Sustainable Infrastructure Advisory (ASIA) Panel Meeting 2021

Technology is revolutionising virtually every aspect of infrastructure, and is changing the way infrastructure is designed, developed and delivered. Two driving forces – climate change and digitalisation – would accelerate the integration of technological innovations into infrastructure.

Technology can play a crucial role in fighting climate change. Defining infrastructure projects in terms of climate mitigation and adaptation outcomes, such as meeting emissions reduction targets and combating sea-level rise, creates an opening for technological solutions to plug the gap. Furthermore, big data, artificial intelligence and Internet of Things (IoT) are introducing opportunities for digitalization across the entire infrastructure value chain, from design and construction to operation and maintenance. Ultimately, harnessing technology will pave the way for countries to become low-carbon and more resilient, meet their climate goals and power the fifth industrial revolution.

Climate change and digitalisation are particularly influential in driving the development of sustainable infrastructure in the energy, water and waste sectors, where the need for technological innovations is most pronounced. These three sectors form an interlinked and synergistic nexus. For example, waste-to-energy systems enable waste to be transformed into useable energy. Crucially, technological inclusiveness is key to creating enabling environments for the advancement of the energy, water and waste sectors. To encourage the widespread adoption of technologies, it is important to bring the cost down and help users see benefits.

Key Objectives of Technology in Infrastructure Public Discussion

Co-organized with United Nations Environment Programme (UNEP), the Technology in Infrastructure Public Discussion would be a valuable platform to uplift the region’s knowledge and awareness on technological developments in sustainable infrastructure by:

• Engaging experts and thought leaders on the role of technology in enabling sustainable infrastructure solutions,
• Sharing key global trends and stakeholders’ experiences in using technologies to improve the sustainability of infrastructure systems,
• Identifying opportunities to apply innovative technologies to sustainable infrastructure solutions in the Asia.

Co-organised with GI Hub and ASEAN + 3 Working Group 1, the Sustainable Investment-Financing Public Discussion would be a platform to discuss issues and solutions in investing in and financing sustainable infrastructure regionally.

Session 1 (3:00pm – 3.45pm): Solutions in Navigating Standards and Taxonomies in Sustainable Financing Global sustainable investment reached US$35.3tn in 2020, making up about 36% of total assets under management globally.

This trend is expected to accelerate as global investors plan to further double ESG assets over the next five years. At the same time, there are many differing standards and frameworks to facilitate the assessment of “green’. Based on the World Bank’s Green Finance platform, there are over 500 policy and regulatory measures issued by public authorities, including governments, central banks, financial regulators, and public financial institutions. Some are targeted at the institutional level and some at products. Charging ahead, many financial institutions have developed their own policies and criteria to provide additional assessment. How can we better navigate this maze of standards and taxonomies to make it easier to on-board more sustainable projects and investments? How have some institutions overcome these issues?

Session 2 (3:50 – 4:30pm): Forging Ahead- Are We Ready for the Energy Transition?

To meet developing Asia’s infrastructure needs while mitigating the effects of climate change, Asia will need about US$1.7tn per year till 20303. More than half of this demand will be in the energy sector. The impact of adjusting to a low-carbon economy because of climate change policies, technological breakthroughs and change in consumer preferences may result in premature devaluation of assets and investments with repercussions to the financial institutions. Coal-fired generation is expanding in Southeast Asia with close to 20 GW of new coal-fired generating capacity under construction4. Unlike Europe, a sizeable portion of Asia still depends on coal for their baseload electricity as the cheapest form of electrification of countries. As organisations race to meet their net-zero targets, how can we meet the energy transition challenge and make renewables in the region cheaper and more accessible, while ensuring countries in the region continue to be affordably electrified?