March News, Insights & Events
The latest from GIIA and the Infrastructure Industry
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The Latest News, Insights and Events
GIIA Parliamentary Reception | 3 May
Join us for networking and speeches from Business and Trade Minister Lord Johnson and John Penrose MP.
UK launches new energy security strategy
Policymakers have today set out plans for working with investors to up renewable capacity and deliver net zero.
AER announces welcome change of approach
The Australian Energy Regulator has adjusted its approach to permitted levels of return following our recommendations.
GIIA members congregate in Berlin
We brought together members and stakeholders as part of a packed agenda to accompany PEI's annual Summit.
GIIA informs new UK House of Lords Ofwat report
Our appearance before the Industry and Regulators Committee has been cited in a major new report. .
How to drive investment in green mobility
Jon Phillips outlines findings from our most recent EU Transport study.
ESG in a Changing World
In the latest episode of our podcast, we look at how environmental, social and governance (ESG) considerations are changing as the infrastructure investment sector evolves.
Kate McKeon, Head of Sustainability at InfraRed Capital Partners, and Joe Robinson, ESG Manager at Equitix, discuss striking the right balance between reporting and delivery, what a new global biodiversity framework means in practice, and avoiding the "greenwash" label.
From the CEO
I have always enjoyed the annual visit to Berlin for the PEI Global Summit, and this year was no exception. I make this my fifth trip since I joined GIIA, with two years lost to the global pandemic, but the 2023 visit was particularly enjoyable for several reasons.
I still remember walking around the Hilton at my first Berlin conference back in 2017 and feeling like something of an industry outsider. Fast forward six years and I was struck by the contrast: managing a packed schedule and bumping into friendly faces everywhere I went.
It was a pleasure to take part in the conference itself, and I enjoyed moderating a panel on global policy tailwinds as well as chairing the Energy Transition day at the back end of the week. The highlight was our member reception in the wonderful Allianz Forum building that overlooks the Brandenburg Gate.
The event has become a real fixture of the Berlin week and I was delighted to have the chance to welcome so many of our members and guests to the hottest ticket in town! Thanks again to all those who attended.
On the policy side, the words Inflation Reduction Act were without doubt the most well used of the week. It is clear the IRA, together with the Inflation Investment and Jobs Act, is having a profound impact not only on the way investors see opportunity in the US, but also on how the EU and even the UK are developing policy to avoid being left behind by the US’s stimulus package. It is clear the US has triggered a race for leadership in green technology investment and competition for the innovation which springs from private capital.
Away from Berlin, we continue to engage on behalf of members across a range of sectors, with activities in support of water, fibre, airports and renewable energy investment in the last month. Our messaging is resonating with the UK’s National Infrastructure Commission, which highlighted the “critical” role of private investors in meeting infrastructure targets in a progress review published this week.
A more concerning development in the US surrounds the emerging schism on ESG. The growing global consensus around the importance of ESG and its significance in the investment landscape has been challenged by an alliance of US Governors challenging the use of ESG considerations in state and local pension funds. Such a divergent view could prove challenging for global investors to navigate. It’s a topic on which we will keep a close eye.
Get Involved
GIIA UK Parliamentary Reception
Members are invited to join to us for networking and speeches from political leaders at our next reception in the UK Houses of Parliament.
Date: 3 May | Location: House of Commons Terrace
US Infrastructure Investment Forum
Join GIIA in collaboration with the Build America Center (BAC) to discuss effective delivery of US infrastructure legislation.
Date: 20 April | Location: Stanford University, California
GIIA Advocacy Spotlights
US
David Quam, US Representative
Following successful engagement at the National Governors Association winter meeting at the start of the year, the next major GIIA event in the US will be an invite-only investor roundtable, co-hosted with the Build America Centre. The discussion – which will be a great chance to engage with decision-makers around implementation of infrastructure legislation – will take place as part of the BAC’s conference at Stanford University over 19-20 April. If you’re interested in being involved, please drop me a line dquam@giia.net.
GIIA US highlights over the past month included contribution to a strategy meeting regarding a Government Finance Officer Association’s research study on alternative revenue sources for local governments. We’re working with the association on the next phase of the project, exploring how local infrastructure can be used to generate new revenues.
We’ve also seen some key developments on the EV charging front, with The U.S. Federal Highway Administration releasing its notice of funding opportunity for the Charging and Fueling Infrastructure Discretionary Grant Program (CFI). The grant is designed to support the development of EV charging and alternative fueling infrastructure in places where people live and work along designated Alternative Fuel Corridors.
Elsewhere, Long-anticipated guidance on the domestic sourcing requirements for electric vehicles is now expected in the coming days. The guidance is expected to loosen the sourcing rules for key minerals for EV’s to qualify for the IRA tax credit.
On the aviation side, the Airport Council International’s new 2023 U.S. Airport Infrastructure Needs Report states that U.S. airports need $151 billion over the next five years to meet their infrastructure needs. The report notes that recent investments by the federal government through the Airport Improvement Program, Passenger and Facility Charge user fees, and the Infrastructure Investment and Jobs Act are not enough to meet demand.
And finally, our friends at the National Governors Association have another important date for the diary. The group will be hosting state broadband leaders for an implementation workshop on April 24-26 in Las Vegas, Nevada. Federal officials and industry speakers will be in attendance to discuss maximizing possibilities for investing more than $45 billion in IIJA funding commitments through the Broadband Equity, Access, and Deployment, Middle Mile, and Digital Equity Act programs.
UK
Chloe Gibbs, Policy & Public Affairs Manager
March saw the Chancellor deliver his highly anticipated Spring Budget, framed as a “Budget for Growth”.
GIIA welcomed the announcement of a new full capital expensing policy, with the intention to instate the policy permanently. The policy, which goes some way to compensate for the super-deduction scheme’s imminent expiration, will allow every £1 invested in IT equipment, plant or machinery, to be deducted in full and immediately from taxable profits.
Further positive announcements for investors included a commitment of up to £20bn to support the early development of carbon capture, utilization and storage; the delivery of 12 new investment zones and the possible (subject to consultation) classification of nuclear power as environmentally sustainable, meaning extension to the sector of investment incentives currently applied to renewables.
We remain supportive of the Chancellor’s commitment to return in the Autumn Statement with a plan to unlock investment from DC pension funds and a response to the challenges created by the US Inflation Reduction Act (IRA). However, we continue to advocate for the government to initiate a shorter-term step change, to ensure the UK retains its competitive edge.
Advocacy highlights for the month included mentions in the latest UK House of Lords Industry and Regulators Committee report and a positive progress update from the National Infrastructure Commission, highlighting the “critical” role of private investors. We will be charting the NIC’s key findings and ensure they are shared with members.
Thanks to all who attended and contributed to our UK policy working group discussion on Tuesday. As we move towards an anticipated General Election in 2024, member input on policy priorities is appreciated now more than ever.
Also in the policy space, we will be starting work on a submission to Ofgem’s recently launched consultation. As ever we are grateful for any input or thoughts members are able to share with us, as we begin the drafting process.
EU
Harvey Chandler, Senior Policy & Public Affairs Manager
It's been a busy month in the EU, with the publication of the Net Zero Industry Act, the Critical Raw Materials Act and electricity market reform proposals. The Commission also set out new plans aimed at stimulating hydrogen production through a European Hydrogen Bank. We also saw a compromise reached between Germany and the European Commission on the proposed ban on combustion engines from 2035, and the passing of the Maritime Emissions Trading System.
Proposals within the long-awaited Net Zero Industry Act see an ambition for at least 40 per cent of the EU's clean tech demand to be met within the EU by 2030. In line with the Green Deal Industrial Plan (GDIP) released in February, the Net Zero Industry Act outlines a number of strategic net-zero technologies that will benefit from faster permitting and easier access to funding, including solar PV, onshore and offshore wind, CCS, grid technologies battery and storage to name only a few.
We're glad to see progress being made in addressing recommendations we’ve put forward around the energy transition.
The Critical Raw Materials Act also helps address concerns over the long-term supply of critical materials needed to build green tech through benchmarks for extraction, processing, recycling and the use of materials from third countries.
Progress on the electricity market redesign has also translated into the EU seeking to better promote the use of Power Purchase Agreements (PPAs) and Contracts for Difference (CfDs) as a way of shielding consumers from short term contracts and volatility. GIIA is actively engaging on these issues with DG ENER and others throughout 2023 as EU members states and the European Parliament consider the proposals further.
The publication of the Hydrogen Bank proposals released in March are also a welcome development, with plans for the bank to support the development of a full hydrogen value chain alongside the Net Zero Industry Act. One of the first actions of the bank will be to facilitate the auction of renewable hydrogen production to support producers through a fixed price payment per kg of hydrogen produced for a maximum of 10 years of operation, backed by €800 million from the EU's Innovation Fund. If you're interested in knowing more about the EU's plans to support investment in hydrogen, please get in touch.
Another key development this month is the conclusion of negotiations between the EU Commission and German government over CO2 emission standards for cars and vans. Under the negotiated settlement, the EU will now allow new combustion engine cars beyond the original 2035 deadline, provided the cars run on e-fuels only. The finalised text will now go to a vote in the Council and Parliament before passing into law.
Both institutions also recently agreed to provisions on the EU's FuelEU Maritime regulation, which will see maximum greenhouse gas intensity limits introduced for ships, as well as new rules that mandate the use of onshore power supply or alternative zero-emission technologies to mitigate emissions in ports.
As we move into Q2, focus remains on the completion of the Fitfor55 package, including the maritime, alternative fuel and aviation regulations, as well as energy developments, all of which GIIA remains engaged on in discussions through the policy working group, industry and officials in the EU. If you're interested in learning more about how to get involved with the shaping of legislation and regulations in the EU, get in touch with hchandler@giia.net
Our Growing Membership
We're delighted to welcome GLIL as the newest member of the GIIA community this month. Learn more about membership
Infrastructure Around the Globe
Germany backs EU power market reform
Euractiv's Nikolaus J. Kurmayer looks at the country's changing approach to electricity market redesign proposals.
Kind words must be matched by action
Jon Phillips sets out investor priorities in the latest Future of Infrastructure report for the Times.
US regulator to get tough on methane
The FT's Myles McCormick assesses New Environmental Protection Agency plans to force oil and gas infrastructure owners to plug leaks or face fines.