Jon Phillips appointed as new CEO
Jon originally joined GIIA in 2016, helping to drive our growth and impact as Deputy CEO.
GIIA/EY Global Asset Database 2023 launched
Our members now hold more than $1.6trn in assets under management across 70 countries.
Increasing the UK’s appeal to global investors
Writing for the ICE blog, Jon reflects on latest findings from our Q2 2023 Pulse survey.
New UK parliamentary report cites GIIA asks
The Public Accounts Committee’s ‘Supporting Investment’ study quotes our inquiry submission.
Guest post: Interview with the Global Infrastructure Hub
Chief Executive Marie Lam-Frendo talks improving investment, MDBs and the implications of Basel III.
US Policy Working Group – 20 July
Members are invited to develop policy positions, share insights and recieve updates from GIIA.
Talking Global Infrastructure episode 12: Our growing global community
In our latest podcast, Jon Phillips is joined by Udit Gandhi and Mike Parker of EY to discuss findings from our new Global Asset Database, which provides a snapshot of how the GIIA community is growing and investing.
We delve into the increasing appeal of renewables, clean tech and digital assets as well as the impacts of global infrastructure legislation and trends set to shape the sector over the coming 12 months.
From the CEO
I must start by thanking so many of you for kindly taking the time to get in touch following the announcement of my appointment as CEO earlier this month. It has been an enjoyable few months in the ‘acting’ role and I am delighted to take on the position on a permanent basis. I have spent much time thinking about my plans for the next chapter for GIIA, and now the task of turning those plans into action begins.
I am ambitious for the future of GIIA and determined to see us continue to grow the membership, our footprint, our voice and our impact on behalf of members. The great news is that we have a strong platform on which to build. Over the coming months, we will be asking members to feedback to us through our annual membership survey. We want to gauge satisfaction with all aspects of our work and receive feedback on specific questions to inform our future activities. Please look out for the survey in your inboxes over the coming weeks.
GIIA’s contributions to the global policy agenda continues to receive recognition. This month we have been quoted in the House of Commons Public Accounts Committee’s ‘Supporting Investment in the UK’ report and referenced in the Legislative Review of the Canada Infrastructure Bank Act. In the US, we have been invited to join a gathering of Government Finance Officers from several US cities to explore opportunities for public and private sector collaboration. In the EU, we have been encouraged by recent comments from a senior representative of the EPP, the largest party in the European Parliament, who said, “While states can play a role, we also need a strong culture of private investment and openness to global markets. Without pro—investment policies, there can be no job creation, no improved living standards, no funding for our key priorities, such as infrastructure and tackling climate change.”
The economic climate continues to make for a very difficult investment landscape to negotiate in the short term, but in every discussion we have in the key markets in which we operate there remains a fundamental area of agreement: private investors in infrastructure have a critical role in helping to lead and deliver the transition towards Net Zero infrastructure. The scale of the task is too great for anything other than a partnership approach between public and private sectors, and we will continue to work with officials and politicians at national and regional levels to work these challenges through to the benefit of all.
Finally, I am looking forward to my trip to Toronto in July and meeting up with our many Canadian Headquartered members for the first time in a few years, followed by attendance at the National Governors Association summer meeting in New Jersey to further develop our engagement at the state level.
Get Involved
Annual Conference
Members can now register for our annual conference in London sponsored by Ashurst and KPMG.
Date: 14 November 2023 I Location: 1 Duval Square, London E1 6PW
Sustainable Infrastructure Summit
Members are entitled to discounted access to this year’s City & Financial event bringing together infrastructure leaders from across the public and private sector.
Date: 6 July 2023 I Location: Central London
Clean Energy Investment Summit
Members are entitled to discounted access to the Infocast US summit examining trends in the renewables, alternative fuels and clean tech sectors.
Date: 2 October 2023 I Location: Houston
GIIA advocacy spotlights
US
David Quam, US Representative
As part of our ongoing engagement with local governments, we are teaming up with the Government Finance Officers Association (GFOA) to support infrastructure asset inventories within local governments and explore new revenue streams. GFOA’s original pilot group included Annapolis, Maryland; Atlanta, Georgia; Chattanooga, Tennessee; Cleveland, Ohio; Harris County, Texas; and Lancaster, California.
GFOA is looking to expand the project to additional jurisdictions and link governments with investors to generate new revenues from existing infrastructure. We are meeting with the GFOA and interested local administrations in Chicago, Illinois this week.
Wider developments to note over the past month include a push by the Biden Administration to widen access to clean energy credits through fresh Treasury guidance. The Inflation Reduction Act (IRA) created two new credit delivery mechanisms – elective pay and transferability – that enable state, local, and Tribal governments, non-profit organizations, U.S. territories; and other entities to take advantage of clean energy tax credits.
The IRA allows tax-exempt and governmental entities to receive elective payments for 12 clean energy tax credits, including the major Investment and Production Tax credits and tax credits for electric vehicles and charging stations. Businesses can also choose elective pay for Advanced Manufacturing, Carbon Oxide Sequestration, and Clean Hydrogen.
Businesses not using elective pay can transfer all or a portion of any of several clean energy credits to a third party in exchange for tax-free immediate funds, so that businesses can take advantage of tax incentives if they do not have a sufficient tax liability to utilize the credits themselves.
Elsewhere, Republican Congressmen from Kentucky and Georgia introduced legislation to “require investment advisers and retirement plan sponsors to prioritize financial returns over non-pecuniary factors when making investment decisions on behalf of their clients.”
The bill, known as the “Ensuring Sound Guidance (ESG) Act,” continues a trend in several U.S. states to restrict investment decisions by pension fund managers based on environmental, social, and governance factors. The legislation is endorsed by several Republican state pension fund managers. While the legislation is likely to be heard in the House of Representatives, it would unlikely move in the democratic-controlled Senate.
UK
Chloe Gibbs, Policy & Public Affairs Manager
This month saw the welcome publication of the Public Account Committee (PAC)’s ‘Supporting investment into the UK’ report. The publication follows a PAC inquiry into the extent to which the former Department for International Trade (now Department for Business and Trade)’s strategy for supporting investment into the UK is having an impact.
We provided a submission in response to the Committee’s call for evidence earlier this year and our recommendation for a “greater focus in government on setting out route maps for investors against clear timelines, particularly in new technologies” was explicitly referenced in the final report. In our exchanges with the committee, we stressed the need for greater clarity in areas of interest to investors (such as hydrogen) where there is often misalignment between investor timelines and final policy decisions to be taken by government.
We are currently preparing submissions to consultations on the refreshed set of Energy National Policy Statements (NPSs) and the government’s draft strategic steer to the Competition and Markets Authority (CMA). We are also in the process of drafting a response to the ‘Strategy and Policy Statement (SPS) for energy policy in Great Britain’ consultation. The SPS sets out the government’s strategic priorities for energy policy, alongside a suite of desired policy outcomes. We encourage members who are interested in contributing to future UK policy submissions to reach out to the GIIA team and join our UK Policy Working Group.
This month also saw Keir Starmer launch the Labour Party’s national mission on clean energy. Of particular interest, was his reference to the need to “roll up our sleeves and start building things and run towards barriers – the planning system, the skills shortages, the investor confidence, the grid.” Starmer cautioned that conversations with investors had revealed that they “don’t see Britain as a stable investment anymore”. He also drew attention to the global competition for clean energy investment, where “all around the world, our competitors are developing frameworks to attract it”.
Amidst an international race for private capital and competitive offerings such as the US’ Inflation Reduction Act (IRA), infrastructure delivery will increasingly represent one of the key policy battlegrounds upon which the next election will be fought.
The House will adjourn in July for Summer Recess, before returning briefly ahead of Conference. The autumn 2023 Conferences are tipped to be the last before a UK General Election in 2024 and so we anticipate some big announcements from both major parties.
EU
Harvey Chandler, Senior Policy & Public Affairs Manager
In June, we heard how the EU sees private investors playing a key role in advancing the energy and digital transitions, including in the EU’s efforts to drive greater investment towards emerging markets. Whilst we welcome this positive vision, it’s important that the words of the EU and member states are now matched by action.
We’ll be taking this message forward as we advance our recommendations in the EU on everything from the European Parliament’s response to electricity market design proposals this Summer/Autumn to the EU’s ongoing drive to remain a competitive destination for private capital. Expect to hear more about this as the European Council meets this week.
Looking ahead eyes are now turning to Spain’s presidency of the European Council, starting on 1 July 2023 and running for six months. The period will be a decisive one for the Commission and Parliament ahead of elections in June 2024, with limited time to pass outstanding legislation and move forward energy market reforms. Spain will also be working to improve the EU’s strategic autonomy by improving trade relations and diversifying supply chains as well as advancing components of the Net Zero Industry Act and Critical Raw Materials Act. For more information on the new Council’s presidency click here.
GIIA’s EU Working Group met this month to discuss ongoing political, policy and regulatory activities in the EU, including the status of market interventions in the energy market, progress of Fitfor55 and updates on our work around the taxonomy and developments in the EU’s foreign direct investment environment. Members also received a hydrogen market update from Hydrogen Europe. If you’re interested in joining future working group sessions, contact hchandler@giia.net.
Making the most of membership
Thanks to all those who attended our last AGM where amendments to our Articles of Association were approved.
We are committed to helping you make the most of GIIA membership.
Contact our membership officer Sophia Taylor for a new guide to maximising the benefits of GIIA participation.
Infrastructure around the globe
Renationalising water would be like pouring money down the drain
The Sunday Times’ Jim Armitage reflects on permitting, funding and investment in the sector.
French government commits €500m to Sustainable Aviation research
Green Mobility EU looks at how the money will be spent across aircraft and fuel development.
Major pension funds steer big dollars towards infrastructure investment
P&I’s Bruce Croce outlines how US state retirement officials are approaching the asset class.
