Infrastructure for a Sustainable Future
Infrastructure is a powerful driver of economic growth and inclusive development, capable of boosting aggregate demand today and laying the foundations for future growth. But it must be done right, so that it helps to mitigate climate change, rather than exacerbating it.
WASHINGTON, DC – Infrastructure is a powerful driver of economic growth and inclusive development, capable of boosting aggregate demand today and laying the foundations for future growth. It is also a key element of the climate-change agenda. Done badly, infrastructure is a major part of the problem; done right, it is a major part of the solution.
Over the next 15 years, more than $90 trillion in infrastructure investment will be needed worldwide. That is more than twice the value of the entire stock of infrastructure today, and requires total annual investment to increase more than twofold, from $2.5-3 trillion to above $6 trillion. Around 75% of this investment will have to take place in the developing world, particularly middle-income countries, owing to their growth needs, rapid urbanization, and already-large infrastructure backlogs.
Closing the infrastructure gap will undoubtedly be challenging. But it also represents a profound opportunity to create the underpinnings of a more sustainable future.