Alternative Investment asset classes continue to see major growth in Luxembourg, and Infrastructure remains one with highest potential. According to Infrastructure Monitor 2021, Alternative Investment classes are globally far off the 5% of GDP (combining public and private investment) required to close the infrastructure gap.

Infrastructure is central to addressing the climate crisis, with around 70% percent of the world’s carbon emissions the result of infrastructure construction and use.  The progressive move of organisations from words to deeds and the global attention that ESG is generating to have net zero strategies, together with the infrastructure stimuli announced by governments in response to the COVID 19 crisis, and the invasion of Ukraine and drive for countries to be less dependent on Russian oil and gas, means one can expect to see the private sector redouble its investment and activity on renewable energy and the climate agenda.

“The climate crisis, living with COVID and the invasion of Ukraine are 3 reasons we need to get it right this year with Infrastructure”.

The infrastructure decisions we make this year will set the stage for how the world will evolve over the next century.

2022 is a year of opportunity as the world learns from the past and works to rebuild with more resilience, sustainability and equity. Yet it will also be a year of uncertainty as new challenges emerge and social expectations continue to shift as we learn to live in a world with (not after) COVID. And infrastructure leaders have an opportunity to fundamentally change our collective path on the climate, social, and governance agenda.

Making the right decisions on infrastructure will require four things - insight, agility, collaboration and bravery.

  • Insight tells us what we should expect in the future.
  • Agility is there when our insight is wrong.
  • Collaboration allows us to change things at speed.
  • Bravery is the spark that lets leaders act.

Explore the trend insights by downloading the full report. To learn more about these trends, and their potential impact on your organization, don’t hesitate to connect with us.

This post is coauthored by Michael Eichmüller de Souza, Real Estate & Infrastructure Audit Partner. Article topic was originally published on kpmg.com.

  

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