Infrastructure Pulse Survey Q2 2022

The Q2 2022 Pulse Survey provides a track on market sentiment among infrastructure investors and insights on emerging trends and barriers to investment. Key findings include:

• There is an increasingly positive outlook for, and attractiveness of, all key Western European markets with a notable increase in the UK and further strengthening in the Nordics where opportunities continue to arise across transport, renewables and healthcare.

• The UK continues to emerge from the shackles of Brexit and a period of regulatory uncertainty and has re-secured its standing as the most attractive European market for infra investors, with a strong outlook and increasing local activity driven by big ticket utility, altnet fundraising and energy transition transactions including landmark deals in the EV charging space.

• Regarding the United States, investor sentiment remains strongest across global markets and sustained at the levels recorded in Q4-21, due to the more stable nature of infrastructure investments in the face of higher inflation and economic uncertainty.

• The shift away from fossil fuel related infrastructure continues with sentiment for carbon-heavy assets, particularly oil and gas, remaining negative even as European countries pivot away from Russian gas and seek to bridge the short-term energy gap.

• Growing ESG requirements outweigh the attractive returns that might be generated from new oil and gas infrastructure. This flows through the survey responses with a further marked increase in the importance of ESG factors to investment decisions and respondents citing climate change as the most significant ESG challenge. The pivot towards energy transition and Net Zero continues with investors seeing increasing opportunities across all sustainable subsectors from renewable generation to EV charging and batteries.

Click here to listen to GIIA CEO Lawrence Slade, talk with Jay Moody and Jason Clatworthy from Alvarez & Marsal about the results of the Q2 2022 survey.