Accelerating private capital mobilisation for infrastructure: Introducing the GI Hub’s Private Sector Advisory Council

Founded in 2022, the GI Hub’s Private Sector Advisory Council (PSAC) acts as a crucial bridge for dialogue, input, and action that aims to increase private sector participation in sustainable infrastructure.

The group comprises some of the world’s largest and most experienced infrastructure investors and solutions providers, including Acciona, BlackRock, CDPQ Global, GIC Infrastructure, IFM Investors, Jacobs, JP Morgan, and Meridiam.

Chaired by GI Hub CEO Marie Lam-Frendo, PSAC member organisations are represented by their Head of Infrastructure (or equivalent) and represent more than USD15 trillion in assets under management. Collectively, they are active across all G20 countries.

Mobilising private capital for sustainable infrastructure

We estimate there is a USD3 trillion per annum gap between infrastructure needs and investment. Following the Global Financial Crisis, COVID-19, and the increased number and intensity of climate-related disasters, government balance sheets are stretched and cannot fund this enormous shortfall. The challenge is most acute in emerging economies that can least afford the infrastructure required to support their populations and transition to a sustainable economy. We must mobilise enormous reserves of private capital to meet the challenge.

As the GI Hub’s Infrastructure Monitor shows, this challenge can be met. Over the past decade, private infrastructure capital (also known as dry powder) has increased more than four-fold. Infrastructure as an asset class continues to offers less risk and higher returns than most other asset classes and is highly attractive, particularly to long-term investors. The key to increasing private sector investment in infrastructure is unlocking this capital by removing unnecessary barriers, streamlining processes, and improving access to data while – most importantly – delivering high-quality, sustainable, inclusive, and resilient infrastructure for the communities that need it most.

This is the challenge the PSAC has been formed to meet, as reflected in the group’s challenge statement: ‘How do we increase private sector participation in sustainable infrastructure?’

Ways of working

Through the GI Hub, the PSAC provides advice and insights to the G20 Infrastructure Working Group (IWG), with a focus on public-private collaboration and advancing ideas to the G20 Finance Track. The PSAC also provides strategic advice and feedback to guide the GI Hub’s programs, projects, and initiatives – including InfraTracker, Infrastructure Monitor, Treatment of Infrastructure as an Asset Class in Regulations, and others.

Importantly, PSAC has been building momentum and consensus on a pilot program to deploy and scale risk mitigation instruments across four emerging markets. The group will next meet in person this September in New York City in the margins of Climate Week and the UN General Assembly to further advance work on this initiative.

In a world of competing priorities, deadlines, and acute challenges, the GI Hub thanks all PSAC members for donating their time, efforts, and energy to accelerate private participation in sustainable infrastructure: Ettie, Jan, Kyle, Luis, Nicole, Serge, Thierry, and Wai Leng, thank you for your collegiality and partnership – we look forward to driving reform and accelerating action together.

If you, your government, or organisation are interested in learning more or contributing to PSAC and its initiatives, please contact Rory Linehan, Director of Engagement at the GI Hub.

Read more about the PSAC members