Infrastructure priorities revealed in new GIIA & Ipsos research
Our latest study of more than 22,00 citizens worldwide shows demand for faster investment.
US Department of Energy briefs on latest opportunities
We brought members and government officials together this month in Washington and NY.
GIIA Annual Conference 14 November 2023
Join us with Ashurst and KPMG in the City of London to hear from global infrastructure leaders.
Nick Elliot joins GIIA to lead on UK engagement
Nick joins as Policy & Public Affairs Manager from strategic consultancy Wonderwerk.
GIIA water asks highlighted by cross-party Lords committee
Our recommendations are flagged in Lord Hollick’s latest letter to the Environment Secretary.
Managing foreign direct investment (FDI) risk
The Freshfields team explore how new regulations are impacting investors across key markets.
Talking Global Infrastructure episode 15: The race to net zero
In our latest podcast episode, we sit down with Cy MacKinnon, Managing Director at Equitix, to discuss the fund’s £125m battery storage deal with the UK Infrastructure Bank, what policy U-turns mean for investor sentiment, and the investability of emerging net zero technologies in different markets around the world.
From the CEO
The timing for our London infrastructure investor dinner, hosted by our friends at Curzon, could not have been much better as infrastructure, once again, leaps to the center of public policy debate in the UK.
Having talked in previous articles about the absence of a public debate on how the costs of net zero commitments will be met, I welcome a greater spotlight being shone on what the UK is prepared to fund and at what pace. The downside of such a debate in the run up to an election is that it risks casting more uncertainty about the policy environment which will do little to give much needed confidence to long–term investors. Coupled with intense speculation over the future of HS2 and the recently failed Contracts for Difference auction for wind power, the UK needs to think very carefully about the signals it is sending to international investors. The Autumn Statement due on 22 November, has become even more critical in terms of the message it will send about the UK as a leading destination for international capital.
By contrast, and having just returned from another fascinating trip to New York and Washington DC, there is a palpable sense of excitement and opportunity amongst investors about opportunities in the US. With $110 billion in greenfield private investment deals closed across the US since the Inflation Reduction Act was passed just over 12 months ago – more than in the UK, Australia, India, France, Germany, Japan, Saudi Arabia and Brazil combined – the US is racing ahead in the competition for private capital.
Our next Pulse Survey, due to be published before the end of October, should make for fascinating reading! The survey closes tomorrow – get in touch with the team if you would like to participate.
With more than 20 of our members invested in the UK’s water sector this continues to be a major focus for GIIA and next week will see water companies submit their business plans for the next regulatory period (2025-2029). This is a crucial milestone for the long-term success of the sector as companies and investors set out the scale of the investment program needed to address current and future challenges. GIIA has been calling for a change of approach from the regulator which has in recent periods given priority to reducing consumer bills over facilitating long–term investment plans.
Time will tell as to how Ofwat will attempt to strike the balance, but we were pleased to note that our views were very much in–line with the recently published recommendations from the House of Lords Industry and Regulators Committee inquiry into the work of Ofwat, with our evidence quoted extensively by Committee Chair Lord Hollick in his letter to the government.
Get Involved
Infrastructure Index Launch
Register to attend the launch of the 2023 Infrastructure Index in London.
Date: 7 November 2023 I Location: CMS Office, City of London
GIIA Annual Conference 2023
Join us with Ashurst and KPMG to hear from a host of expert speakers from across the industry.
Date: 14 November 2023 I Location: Ashurst Office, City of London
Webinar: ESG Considerations in the US
Join us for a webinar exploring ESG considerations in the US with ROKK and Simpson Thacher & Bartlett.
Date: 30 October 2023 I Location: Online
Emerging Leaders In Infrastructure (ELII) Winter Social
Members of GIIA’s ELII Group are invited to join us in the City of London for festive drinks and a chance to network with industry peers.
Date: 6 December 2023 I Location: TBC, City of London
GIIA advocacy spotlights
US
David Quam, US Representative
GIIA members met in New York City this month to hear from Leslie Biddle, Sr. Advisor at the U.S. Department of Energy. Biddle focused on how investors can access more than $90 billion in grants and rebates and $400 billion in loans and loan guarantees made available to the energy sector through the Infrastructure investment & Jobs and Inflation Reduction Acts. Biddle encouraged GIIA members to work with their portfolio companies to take full advantage of the programs.
GIIA then co-hosted US governors’ infrastructure coordinators in Washington, D.C. to discuss the importance of effective communications in supporting public-private partnerships. GIIA CEO Jon Phillips stressed the importance of early, consistent, and forward-looking communications to quell community frustrations and build support for major infrastructure projects.
The meeting included more than 30 state representatives along with officials from the US Department of Commerce, the Environmental Protection Agency, the Department of Interior, and President Biden’s office for implementation of the Infrastructure Investment and Jobs Act.
Finally, the U.S. Policy Working Group also met in Washington, D.C. to meet with GIIA’s new public relations firm, ROKK Solutions, discuss pending federal regulations that could hinder infrastructure investment, and explore new partnerships with local governments to build capacity for future public-private projects.
More widely, September marks the end of the federal government’s fiscal year, and unless legislation is passed to fund the government past September 30, the government will shut down. During a shutdown, non-essential federal employees are furloughed and unable to work. From an infrastructure standpoint, this could mean increased delays in processing applications, conducting inspections, or approving loans. Essential services like law enforcement and air traffic control are not subject to the shutdown, and some agencies, like museums, may tap reserves to stay open, but the longer Congress delays, the more consequences for infrastructure projects either underway or under consideration.
UK
Chloe Gibbs, Policy & Public Affairs Manager
As a number of our members will already be aware, this month’s Bulletin update will sadly be my last, as I leave GIIA to begin a new role in October. It has been a privilege to be a part of the GIIA team over the last year and a half – getting to know members, and championing the role of private investment in infrastructure. Whether it was delivering a number of focused policy roundtable sessions, making arrangements for our UK Parliamentary Reception, or drafting consultation submissions – every moment spent working for, and on behalf of, our members has been an absolute pleasure.
I will now be handing over to Nick Elliot who joined us last week as our UK Policy & Public Affairs Manager and can be reached on Nelliott@giia.net.
Highlights for this month included an investor roundtable with the UK Infrastructure Bank (UKIB). The discussion provided members with an opportunity to engage with UKIB colleagues following the Chancellor’s updated statement of strategic priorities for the Bank. September also saw our Chief Executive meet with the Minister for Investment, Lord Johnson, to discuss a range of topical areas including current investor sentiment towards the UK.
September also saw our Chief Executive meet with the Minister for Investment, Lord Johnson, to discuss a range of topical areas including current investor sentiment towards the UK. We were also pleased to have been referenced in the recent letter from Lord Hollick (Chair of the Industry and Regulators Committee) to the Secretary of State for Environment, Food and Rural Affairs. Specifically, GIIA’s doubts around the ability of the sector to continue attracting the investment required and need for Ofwat to strike an effective balance between funding from today’s customers and future generations, were highlighted in the correspondence. We look forward to tracking the government’s response and will share news of any updates with members, in due course.
On the policy side, we have recently provided a submission to Ofgem in response to its call for input on the impact of high inflation. Facilitating much-needed investment in existing (and new) infrastructure is key to unlocking our net zero objectives. We advocate strongly for frameworks that provide policy clarity and stability to the investor community.
Our recent UK Policy Working Group meeting provided members with an opportunity to hear from the Department for Energy Security and Net Zero (DESNZ) on the ongoing Review of Electricity Market Arrangements (REMA) programme. We anticipate the launch of a further consultation document in the coming months, and intend to provide a response.
As we look ahead, GIIA is continuing engagement with the Home Office team on the Foreign Influence Registration Scheme (FIRS). With the policy expected to be operational by 2024, concerns exist around implications for groups such as sovereign wealth funds, which are still likely to be captured by the scheme.
EU
Harvey Chandler, Senior Policy & Public Affairs Manager
With Brussels back in full swing, Commissioners, Parliamentarians and Member State governments have wasted no time in trying to set the agenda for the remaining months before we move into full election mode – heralding a new Parliament and Commission next year.
Commission President Von Der Leyen’s State of the Union speech fired the starting gun for new scrutiny measures, announcing that, whilst the EU was open to the world for business, it wasn’t open for a “race to the bottom”. Cue an investigation into cheap EV imports and concerns about reliance on external markets for solar panels. Such issues were discussed at the recent Global Infrastructure Initiative forum focused on decarbonising mobility in Amsterdam, supported by GIIA. Other initiatives that caught our attention include a new Wind Power Strategy due in late October, focused on accelerating permitting, addressing supply chain weaknesses and recent issues with auctions.
In Parliament, MEPs recently passed outstanding Fitfor55 legislation, including ReFuelEU Aviation and the much delayed and re-re-renegotiated Renewable Energy Directive, which mandates that member states should have at least 42.5% of their energy use coming from renewables by 2030. Parliament is also progressing legislation linked to the Green Deal Industrial Plan, with a position on the Net Zero Industry Act (NZIA) expected in November. Meanwhile Member States are still negotiating their position on NZIA, as well as legislation focused on critical raw materials and the future shape of the electricity market design. Time is running out however, given the time needed to agree any compromises between institutions once positions are agreed. GIIA has been keen to stress the need for certainty on areas linked to GDIP as investors consider the investment environment across markets.
Another area that is setting the agenda for what’s to come in Q4 is the approach member states take to another core part of the GDIP agenda, namely state aid provisions within the Temporary Crisis and Transition Framework. The Commission recently closed its consultation of member states on whether industrial support provided for under the framework should continue, however certain member states such as Germany and France have been keen to point out their strong desire for state aid provisions to remain to support industrial competitiveness. It will not be up to member states and the Commission to decide what happens next, before existing support ceases at the end of December 2023.
As we move through the coming months, we are continuing to engage key institutions and industry groups on the issues of importance to investors as they continue to invest and help the EU meet its infrastructure targets. If you’re interested in discussing our engagement and GIIA’s policy positions in the EU, please get in touch with Harvey at hchandler@giia.net.
Insights
Vlad Benn, Policy & Research Manager
Green incentives contained in the monumental Inflation Reduction Act, signed into law just over a year ago, have been in place for nine months and are helping to spur levels of investment into clean energy.
A closer examination of the US’ solar, wind, hydrogen, battery storage and carbon capture sectors, however, tells an interesting story about how that investment is spread.
A tale of two sectors? Investments benefitting from IRA incentives in Jan 2023 (above) have been concentrated in solar and wind power.
Have your say: member survey
Many thanks to everyone who has provided us with feedback through our Annual Member Survey. The survey closes tomorrow, and takes less than 10 minutes to complete, so please share your thoughts with us before then if you haven’t already done so.
Your input is vital in helping us track how well we are serving our members and how we can shape future work programmes to maximise the value we provide to members. Complete the survey.
If you have any questions, or would like to follow-up your response, please contact Sophia Taylor.
Infrastructure around the globe
Offshore wind power warning as strike price begs questions
Sky’s Paul Kelso assesses lessons learned from the UK’s latest renewables action round.
5 takeaways from Urusula von der Leyen Union address
Euronews’ Jorge Liboreiro looks at how the EC President is putting green investment front and centre.
Alternatives to Belt & Road have much to prove
Reuters’ Hugo Dixon details G7 and G20 efforts to support private investment in developing markets.
