Background and Challenges

Infrastructure is crucially important to foster countries’ economic development and prosperity. Investments in infrastructure contributes to higher productivity and growth, facilitates trade and connectivity, and promotes economic inclusion.

Global infrastructure demand is high. McKinsey has reported that from 2016 to 2030, there will be a need to invest on average USD3.3 trillion annually to keep pace with projected growth. Of which, 60% is accounted for by developing countries. Furthermore, Asian Development Bank has estimated that USD1.7 trillion is required every year to maintain rates of growth sufficient to alleviate poverty in the Asian region including investment needs for climate change mitigation and adaptation.

As the population of developing countries keep growing, it is imperative we need high-quality infrastructure that is sustainable, increases business activities, creates new employment, narrows income disparities and empowering gender participation. Quality Infrastructure is at the heart of the Sustainable Development Goals as it supports inclusive growth and enhances access to all. One cannot ignore the Paris Climate Agreement and the inter-relation between infrastructure, sustainability and climate.

This task force aims to propose ways of developing quality infrastructure investments which consider financial, climate, and urban planning challenges. By addressing the challenges of the inherent complexity of quality infrastructure investments, mobilization of long-term finance at reasonable costs, and reformation of existing urban management systems amongst other, the task force will create a corpus of knowledge including best practices followed in various G20 member countries to encourage quality infrastructure investments.

T20 Japan on Optimizing Infrastructure Development

T20 Japan Chair and infrastructure task force Lead Co-Chair Naoyuki Yoshino describes the keys to meeting rising infrastructure demand and maximizing the benefits.

Policy Briefs and Proposals