In this week’s Infrastructure Policy Watch, agreement on ‘loss and damage’ fund, and critical partnership established to drive infrastructure investment.
Pivotal fund to support the most vulnerable launched at COP27
A new ‘loss and damage’ fund was agreed upon at COP27.
The fund will be set up to support the most vulnerable countries hardest hit by the climate crisis.
The conversation around setting up a fund has been ‘decades long’. It has now manifested in a viable opportunity for supporting the most vulnerable.
The agreement includes new funding arrangements and a separate fund for developing countries to assist with loss and damage caused by natural disasters.
Support includes:
- finance
- technology
- capacity building
The fund will help those ‘whose lives and livelihoods have been ruined by the very worst impacts of climate change’.
A transitional committee will be set up to consider how the fund and new funding arrangements will operate for consideration at COP28 in 2023.
ICE’s view:
Leaving no one behind has become the well-versed mantra of achieving just and equitable sustainable development outcomes. That said, we now need to act on this statement for it to have an impact.
The agreement around setting up a ‘loss and damage’ fund marks a first step toward taking action in this space.
Acknowledging the climate crisis and its varied impact on countries marks a breakthrough moment in recognising what is needed to achieve Sustainable Development Goals (SDGs), including the collaborative effort needed to get there.
The ICE’s green paper programme also supports this outlook by quantifying the scale of the climate change adaptation efforts at the country level, embedding practices into policy-making processes.
Boosting infrastructure investment for shared benefits in the UK and South Africa
The launch of the second phase of the UK-South Africa Infrastructure Partnership was announced as part of President Cyril Ramaphosa’s 2-day state visit to the UK in late November 2022.
The next phase aims to drive up infrastructure investment opportunities and benefits across both countries, where ‘turbocharging’ investment will achieve economic benefits across both countries.
Kemi Badenoch, the UK’s trade secretary, remarked:
"Today we’re moving into a new era of our dynamic trade relationship with South Africa, with exciting collaboration on infrastructure, clean technology, and renewable energy sources."
South Africa stands to benefit from increased economic growth through major infrastructure projects to 'unlock green hydrogen opportunities and boost skills in this key sector'.
The UK benefits from export finance, offering UK businesses to invest and trade. Benefits also include shared technical and vocational learning.
Shared benefits of the partnership will include the following:
- trade
- tourism
- security
- defence
ICE’s view:
Partnerships helping to boost investment in national infrastructure support the development of long-term infrastructure pipelines and ensure developmental opportunities have sustained political and financial backing.
Economic growth is bolstered by mutually supporting services and benefits, helping each country to achieve their respective national strategy.
Pairing infrastructure and economic growth is outlined in the ICE’s Enabling Better Infrastructure (EBI) programme, where finding opportunities to support a country’s national strategy is essential.
In case you missed it:
- Is our infrastructure ready for climate change? Find out more on ICE’s Green Paper Programme on making the UK’s infrastructure more climate resilient.
- Simon Bennett from the International Energy Agency explains why the impacts of today’s energy shock will be felt for years to come.
- Ever wondered who is footing the bill for UK’s net zero transition? Our latest brief delves into how the transition will be financed.
Check back in a fortnight for the next edition of the ICE's Infrastructure Policy Watch.
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