August news, insights & events
The latest updates from GIIA and the Infrastructure Industry
In conversation with White & Case on 6 September
Join us in London to explore current market trends with Tim Sheddick and GIIA's Jon Phillips, followed by a drinks reception.
Join us in the US in September for key investor events
We're heading stateside for a host of events alongside Sullivan & Cromwell, McKinsey and National Governors Association in New York and Washington.
One year on from US Inflation Reduction Act
Writing for RealClearEnergy, Jon Phillips comments on the bill's impact on US infrastructure and addressing climate change.
Speaking up for water investment with UK parliament
We highlight challenges facing the UK water sector in a submission to the House of Lords Industry & Regulators Committee.
The bottom line: Infrastructure is a worthwhile bet
Writing in Partnerships Bulletin, we speak on investor sentiment and why capital market investors might be dragging their feet.
Talking trends, challenges and opportunities in Australia
Infrastructure magazine sits down with our CEO Jon Phillips to discuss global lessons the country can learn, and teach others
Talking Global Infrastructure episode 13: The Power of Public-Private Partnerships in the US
We sit down with former Utah State Senator, Salt Lake County Mayor and Congressman Ben McAdams to discuss the importance of public-private partnerships in delivering sustainable infrastructure in the US, a new initiative aimed at helping governments to better utilise their balance sheets, and the need for policymakers and investors to work together to tackle climate change.
From the CEO
I hope the summer holidays have provided an opportunity for some rest and relaxation for those of you in the northern hemisphere, even if temperatures and storms have at times been extreme in some locations.
Indeed, the impacts of changing weather patterns are becoming increasingly notable and putting global infrastructure under an increasing spotlight. Flash floods and drought play havoc with our water systems, record temperatures place a heavier burden on energy generation and distribution, sustained heatwaves melt road surfaces, runways and train tracks, and wildfires extend beyond the devastating threat to life and nature onto wider infrastructure disruption. The impacts of climate change are all around us, which brings the challenge of climate resilience and impact mitigation to the forefront for infrastructure investors.
A question we at GIIA regularly pose during our engagement with policy makers and regulators on this topic is how resilient do we want our infrastructure to be? Users of infrastructure tend to assume that the services they rely on will be available 100% of the time. But they would understandably baulk at the notion of paying double for that service in order to guarantee 100% contingency in the face of failure. So, what level of resilience or disruption are consumers prepared to accept in this changing world, and how much are we prepared to pay to ensure high levels of availability?
Planning to meet net zero targets and decarbonisation of infrastructure is already a huge undertaking for governments and investors, but the public debate about how we meet the costs of that transition for our existing and future infrastructure is largely missing, perhaps conveniently swept under the carpet for after the next election or regulatory review period. Alongside that vital conversation is another one around climate resilience and the need for a trade-off between acceptable levels of disruption and acceptable consumer bills, a trade-off we will continue to highlight in our global engagement.
In representing your interests and developing our priorities, we're undertaking our Annual Member Survey and I would greatly value your feedback and ideas. Your input – whatever your role and wherever you work is vital in helping us track how well we are serving our members and how we can best shape our future work programmes to maximise the value we provide to our members. So please do share your perceptions of GIIA's performance, satisfaction with the way we operate and your views on our priorities. Click here to complete the survey – on average it takes just six minutes.
Get Involved
New York Member Reception
Members are invited to join us for a lunchtime reception including drinks and networking at McKinsey's offices in New York.
Date: 12 September 2023 I Location: New York, US
GII Net Zero Roundtable New York
Following our lunchtime reception, we're hosting a roundtable discussion at McKinsey's office in New York, with guest speaker Leslie Biddle from the Department of Energy.
Date: 12 September 2023 I Location: New York, US
Infrastructure Coordinator meeting
We're hosting a panel discussion on the role communications in supporting public-private partnership projects with the National Governors Association.
Date: 13 September 2023 I Location: New York, US
Washington DC Reception
Members and stakeholders are invited to join us alongside Sullivan & Cromwell to discuss the latest developments in the U.S. infrastructure agenda, followed by drinks.
Date: 13 September 2023 I Location: Washington DC, US
Clean Energy Investment Summit
Members are entitled to discounted access to the Infocast US summit examining trends in renewables, alternative fuels and clean tech.
Date: 2 October 2023 | Location: Houston
Annual Conference
Members are invited to register for our conference and join industry leaders in London to gather insight and network with peers.
Date: 14 November 2023 I Location: 1 Duval Square, London E1 6PW
GIIA advocacy spotlights
US
David Quam, US Representative
August marked the first anniversary of the Inflation Reduction Act, a law that includes more than $300 billion in climate and energy initiatives designed to spur investment in clean energy. According to the US Treasury Department, tax credits in the legislation have generated more than $110 billion in clean energy investments and 200 new clean energy projects over the past year. Based on our latest Pulse survey of members, our CEO Jon Phillips has remarked that investors are “more bullish on the US, largely due to the Inflation Reduction Act”, in an article in RealClearEnergy.
The US Department of Transportation’s Build America Bureau has announced its plan to release $38 million of its $100 million in grant funds under its Innovative Finance and Asset Concession Grant Program. The programme, part of the Infrastructure Investment and Jobs Act, is designed to assist public entities looking to explore innovative financing and public-private partnership models for projects in highways, rail, freight facilities, ports, airports and transit-oriented, urban development. Applications for this competitive grant are due this autumn, with funds expected to be released next spring.
GIIA will join forces with the National Governors Association on 13 September to host state infrastructure coordinators for a panel discussion in Washington, DC, on the role of communications in supporting public-private partnership projects. The event will include a meeting of our US Policy Working Group, followed by a rooftop reception with state and federal officials at the law offices of Sullivan & Cromwell. Please register here if you're able to join us. We hope to see you there.
UK
Chloe Gibbs, Policy & Public Affairs Manager
We have written to the Industry and Regulators Committee in response to its Follow-up inquiry into Ofwat, the water industry and the role of the Government, in which we have highlighted key steps that should be taken by both regulator and government to improve investor sentiment and stimulate a much-needed flow of new capital. Our recommendations included an explicit duty for Ofwat to promote investment, the provision of guidance on achieving intergenerational fairness and maintaining a robust merits-based appeals regime.
We have further made representations to government in response to the call for evidence on the extension of the ‘growth duty’ to Ofgem, Ofcom and Ofwat. To provide an effective counterweight to the regulators’ existing duty to consumers, we believe an obligation to promote growth would improve inter-generational fairness and encourage additional investment.
The UK’s Electricity Networks Commissioner, Nick Winser, has published his report on how to accelerate the deployment of electricity transmission infrastructure. Key recommendations include a new document for Electricity Design Principles, that National Policy Statements (NPSs) be updated urgently and regularly thereafter, and that the Future System Operator be established quickly and made responsible for producing a Strategic Spatial Energy Plan..
Ahead ofthe return of Parliament from summer recess, our next UK Policy Working Group meeting is on 18 September. We very much encourage members – particularly those who may be new to the group - to join us, with an update from the Department of Energy Security and Net Zero (DESNZ) on the Review of Electricity Market Arrangements (REMA) among the agenda items.
Turning to consultations, we plan to respond Ofgem’s call for input regarding the impact of high inflation on network price controls. Members who would like to contribute should get in touch as soon as possible.at . We are expecting further consultations thisautumn on the government’s review of economic regulation, and a secondary REMA document.
With the political conference season now only a few weeks away – the last one before next year’s general election - both major parties will soon launch their headline policies. This We will track and share any key announcements with our members.
EU
Harvey Chandler, Senior Policy & Public Affairs Manager
The end of the summer heralds a fresh buzz in Brussels as we enter the prelude to the 2024 election season, with a final push to progress files such as those on state aid, EU competitiveness and electricity market reform.
The EU will need to agree whether to extend the Temporary Crisis and Transition Framework in the run-up to 2024, which includes state aid measures aimed at cushioning the impact of the Russia-Ukraine War and supporting the rollout of renewable energy and storage. Subsidy allowances are likely to be contentious in negotiations leading up to the 31 December 2023 cutoff, with France reportedly pushing for ongoing subsidy allowances for repowering nuclear plants and Germany exploring subsidisation of energy-intensive industries to stop them relocating.
Another important issue for investors is the final shape of electricity market design reforms, currently being considered by the European Parliament and the Council of the European Union. Whilst the European Parliament's energy committee (ITRE) agreed its negotiating position in July, the Council has yet to agree a unified position on several major parts of the Commission's original proposal. The REMIT integrity and transparency provisions are the only publicly agreed area so far.
One area that will need to be resolved is whether to back Parliament's position and the Commission's recommendation to end revenue caps for inframarginal power generation. These are counter to longer-term reforms and have been shown to harm renewables investment and the promotion of Power Purchase Agreements (PPAs), Contracts for Different (CfDs) and other routes to market.
Making the most of your membership
Tell us what you think
Representing your interests is our top priority. We're undertaking our Annual Member Survey and would greatly value your feedback and ideas.
Your input - whatever your role and wherever you work - is vital in helping us track how well we are serving our members and how we can best shape our future work programmes to maximise the value we provide to our members.
Please do share your perceptions of GIIA's performance, satisfaction with the way we operate and your views on our priorities. Click below to complete the survey, which on average takes just six minutes.
Develop your leadership skills
We're partnering again with Euromoney for the IJ Global Masterclass in Infrastructure and Project Finance – a six-week, self-paced online programme starting from 2 October 2023.
Members of GIIA’s Emerging Leaders in Infrastructure Investment (ELII) network are eligible for an exclusive 25% discount. Wider members are entitled to a 20% discount.
Please get in touch for more details and how you can save your place.
Infrastructure around the globe
UK Infrastructure Bank makes first investment in UK critical mineral supply chain
The £24 million investment into Cornish Lithium marks UKIB's first equity deal to crowd in private sector financing.
Europe's gas prices fall from €300 to €35 MWh in the space of a year
Gas prices in the continent bounce back from 2022 all-time high after concerted efforts from households, businesses, and policymakers.
IRA not necessarily immune to politics of anti-ESG culture wars in US
One year on from the passing of the landmark legislation, how does the horizon look for US investors?
