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A new World Bank report finds that a 4.
5 percent investment in GDP will enable developing countries to meet infrastructure-related Sustainable Development Goals and limit climate change to a maximum of 2 degrees Celsius
.
In addition, it was found that infrastructure investments compatible with full decarbonization do not need to cost more
than more polluting alternatives.
Today, infrastructure gaps are enormous: 940 million people lack electricity, 660 million lack access to improved drinking water, 2.
4 billion lack improved sanitation, 1 billion live more than two kilometres from all-weather roads, and 4 billion lack internet access
, according to the World Bank.
The lack of access to jobs and education is even more difficult
due to the lack or high cost of transport services.
"Our analysis clearly shows that developing countries can build the smart climate infrastructure
they need by spending about 4.
5% of their GDP.
The good news is that this is close to what many countries are already spending," said Kristalina Georgieva, interim chair of the World Bank Group, "and with the right choices, the infrastructure can be built to help meet globally agreed emissions targets
.
" The focus must be on smarter, more resilient investments, not necessarily more
.
”
The expenditure target of 4.
5 per cent of GDP is a preferred option for countries to adopt policies that take into account long-term climate goals to avoid costly stranded assets later, invest in renewable energy, integrate transport planning with land-use planning, develop attractive rail systems, and deploy distributed technologies in rural areas, such as mini-grids
for electricity.
The report also highlights that improving service requires more than capital expenditure: ensuring stable operating and maintenance resources (O&M) is necessary for success
.
The World Bank report estimates that this ongoing operating and maintenance cost will amount to 2.
7%
of GDP per year.
A new World Bank report finds that a 4.
5 percent investment in GDP will enable developing countries to meet infrastructure-related Sustainable Development Goals and limit climate change to a maximum of 2 degrees Celsius
.
In addition, it was found that infrastructure investments compatible with full decarbonization do not need to cost more
than more polluting alternatives.
Today, infrastructure gaps are enormous: 940 million people lack electricity, 660 million lack access to improved drinking water, 2.
4 billion lack improved sanitation, 1 billion live more than two kilometres from all-weather roads, and 4 billion lack internet access
, according to the World Bank.
The lack of access to jobs and education is even more difficult
due to the lack or high cost of transport services.
"Our analysis clearly shows that developing countries can build the smart climate infrastructure
they need by spending about 4.
5% of their GDP.
The good news is that this is close to what many countries are already spending," said Kristalina Georgieva, interim chair of the World Bank Group, "and with the right choices, the infrastructure can be built to help meet globally agreed emissions targets
.
" The focus must be on smarter, more resilient investments, not necessarily more
.
”
The expenditure target of 4.
5 per cent of GDP is a preferred option for countries to adopt policies that take into account long-term climate goals to avoid costly stranded assets later, invest in renewable energy, integrate transport planning with land-use planning, develop attractive rail systems, and deploy distributed technologies in rural areas, such as mini-grids
for electricity.
The report also highlights that improving service requires more than capital expenditure: ensuring stable operating and maintenance resources (O&M) is necessary for success
.
The World Bank report estimates that this ongoing operating and maintenance cost will amount to 2.
7%
of GDP per year.
