Infrastructure Workstream

Building global resilience through resilient infrastructure and integrating climate risk into investment decisions.

Infrastructure is critical for climate adaptation and resilience

The climate is changing, with increasing extreme weather events and record temperatures posing risks to the global economy, civil society, and investors. The changing climate can no longer be viewed as a distant problem and must be factored into climate adaptation for global resilience.

However, the lack of a global standard for climate resilient infrastructure means that physical climate risks (PCRs) are too often overlooked in the design and valuation of infrastructure assets, jeopardizing the success of climate adaptation planning. We need a greater understanding of evolving climate hazards, to mainstream them in investment decisions and build global resilience.

Infrastructure initiatives to deliver a climate resilient world

The AAC Infrastructure Workstream, led by the Coalition for Climate Resilient Investment (CCRI), highlights the importance of enhancing asset resilience to physical climate risks, to reduce the consequences of climate change on society and improve global adaptation. By properly pricing climate risk in financial decision-making, investors will be encouraged to build infrastructure that is more capable of withstanding the impacts of climate change.

CCRI develops the practical tools needed to integrate physical climate risks in investment decision-making. Through resources such as the recent Risk and Resilience report, CCRI helps infrastructure stakeholders address the mispricing of physical climate risks and build resilience to a changing climate.

CCRI is also focused on building global knowledge, resources, and capacity to encourage the enhanced resilience of infrastructure to physical climate risks. Over 123 members across 21 countries have joined the Coalition, representing $25 trillion in assets.

Infrastructure Champions

Jamaica

Jamaica is the first pilot country to test the effectiveness of the CCRI Systemic Resilience Forum’s deliverables in building national climate resilience. This pilot project uses an investment prioritization tool to assess the exposure of various sectors to physical climate risks and recommend investments in climate resilience. The results of this assessment will be used to develop a pipeline of climate resilient projects, including nature-based solutions.

The State of California, USA

In September 2021, CCRI released the ground-breaking report ‘Developing Climate Risk Disclosure Practices for the State of California’, looking at how California can adapt to the growing challenges posed by climate change. The report provides a roadmap for state investment decision-making in the face of climate risks. This framework will allow the development of climate risk disclosures that impact decision-making, enabling the state to better manage climate risk.

Looking ahead to COP27

With COP27 hosted in Egypt this year, solutions that drive the long-term mobilization of climate finance to accelerate resilience for vulnerable countries will be at the center of climate discussions.

Last year, significant progress was made to accelerate global action on adaptation and resilience, with the UN calling for urgent efforts to increase resilient investments. This year, the AAC Infrastructure Workstream is focused on increasing this momentum and developing radical innovations that can be turned into practical solutions for climate resilience.

CCRI is preparing to launch several key publications this year, including guidelines for integrating physical climate risks in the appraisal of infrastructure assets, resilient investment principles, and metrics for resilience.

As the pilot project in Jamaica moves to its next phase, CCRI’s Systemic Resilience Forum will be looking to scale and refine an additional three jurisdictions globally, with the aim of announcing the launch of at least two new projects by COP27.

Partners

• WTW (Willis Towers Watson)
• The Global Centre for Adaptation
• The World Resources Institute
• The World Economic Forum
• UK Government
• State of California
• Coalition for Disaster Resilient Infrastructure (CDRI) (sponsored by the government of India)

Funders:

• UK Foreign, Commonwealth & Development Office

Countries involved in the workstream:

If you're interested in learning more or getting involved with the Infrastructure Workstream, contact Courtnae Bailey.

Cover image credit: UNDP Climate Flickr

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