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Investing in pathways to decarbonise infrastructure

Since the beginning of 2021, Global Infrastructure Investor Association (GIIA) and McKinsey have closely collaborated to provide a perspective on the role of infrastructure investors in decarbonizing infrastructure assets.

Our efforts are focused around three objectives:

First, developing a carbon baseline for selected infrastructure sectors based on a sample of companies across transportation, electricity, digital, and waste, with a focus on Scopes 1 and 2 emissions.

Second, developing carbon-reduction pathways until 2030, in line with the Science Based Targets initiative,1 and including an estimate of associated costs to asset owners. And third, deriving decarbonization implications for selected infrastructure sectors. These implications were based on several factors, including differences in baselines and decarbonisation options across asset classes, pathway costs and key trade-offs, and key unlocks required by companies, investors, and regulators.

Our analysis shows that investors who develop a deep understanding of what is increasing emissions in their portfolios, and subsequently create a plan with bankable decarbonization levers, can make real progress on their decarbonization ambitions in a financially sustainable way.

Click here to read more.