November news, insights & events

Autumn Statement includes measures that support investors, though more to do

Advocacy activity pays off with new support for foreign direct investment and full-expensing, but economic regulation and planning still need reform

Q4 Pulse Survey compares attractiveness of global investment destinations

Our latest pulse survey shows governments must take action to capitalise on investor interests in the global race for capital

GIIA annual conference earns positive feedback from members

More than 100 GIIA members and stakeholders joined discussions on global trends, net zero, social impact and emerging markets, with insights from the world of politics

Long-term, cross-party consensus can drive investment across G20 countries

CEO Jon Phillips sits down with the GI Hub for a Q&A on the importance of partnerships between the public and private sectors to close the funding gap

Countries with best business environments for infrastructure investment ranked in new index

Our co-partnered CMS Infrastructure Index provides a tool for identifying the attractiveness of 50 countries round the world

How AI is transforming Infrastructure: Emerging Leaders event 6 Dec

Members of the Emerging Leaders in Infrastructure (ELII) group are invited to join us and PwC to explore how Gen AI is shaping the future of infrastructure

From our CEO

In last month’s newsletter I ventured to suggest that the UK’s attractiveness as a destination for investment in infrastructure was rising fast on the political agenda and speculated that the tide was beginning to turn in terms of investor sentiment.

It was extremely encouraging therefore to see a number of very positive announcements included in the Chancellor’s Autumn Statement, such as the full expensing regime to incentivise capital investment, and the adoption of recommendations in the Harrington Review on encouraging foreign direct investment. Lord Harington’s recommendations came after extensive engagement, including with GIIA, and we were fortunate to get a sneak preview of his thoughts during his keynote address at our annual conference this month. One of the key planks of his plan is a beefed-up role for the Office for Investment (OfI); you can read more on this from our guest contributor Gavin Winbanks who had an instrumental role in setting up the OfI during its formation back in 2020.  

In the same week as the Autumn Statement came the first meeting of the British Infrastructure Council - an encouraging initiative from the Labour Party to inform policy by bringing together leading players in the sector. And then a week later, the government’s global investment summit at Hampton Court Palace took place, with a stated ambition for the UK to become “the undisputed number one investment destination in Europe”.  This is all great to hear, as are the future investment commitments being made by several GIIA members. If the recently published consultation paper into Strengthening Economic Regulation delivers the much-needed improvements that investors in the energy, water and telecoms sectors are looking for, then we really could see the UK regain its reputation.

In the meantime, we continue to represent members’ interests in Europe, North America and further afield. I encourage you to read our updates in the market spotlight section.

Thank you to everyone who joined us at our annual conference this month, and particular thanks to our sponsors Ashurst and KPMG. This was the first time we have run a full day conference, and it was extremely gratifying to see a packed room engage with a great set of contributions from our speakers. For those not able to join us, a summary of the event can be read on our website and we hope you are able to be with us next time.  

Plans for next year are taking shape and I am looking forward to discussing these with our Board in early December before sharing our ambitions with you, our members, on our All Member Call in January. Those plans are informed of course by the feedback you gave us in our annual member survey.  This year’s feedback generated our best ever response rate and gave us some valuable feedback on areas where we can improve our engagement. A stand-out figure was that 100% of respondents would recommend GIIA membership to industry peers. Thank you.

Get Involved

Calling all GIIA members

We invite you to join our first All Member Call of 2024 to hear about our advocacy plans for the year, and a reminder of how you can make the most of your membership.

Date: 16 January 2024 I Location: Online

Want to contribute?

We work with our members to produce a range of events, reports and insights across the year. If you would like to contribute to our agenda, please get in touch by emailing events@giia.net. We’d love to hear from you.

Market spotlights

US news

By David Quam, Senior US Advisor

Congressional budget negotiators avoided a US government shutdown in November when they reached a deal to extend spending authority into 2024. The deal, however, creates two opportunities for mischief as funding authority was split. Some portions of the government are being funded through to 19 January, which is an important deadline for infrastructure investors since funding for the agencies overseeing energy, water, and transportation programs expires at that time. The rest will receive funding through to 2 February.

At the state level, the National Governors Association (NGA) has held its first regional meeting of state infrastructure coordinators in Nashville, Tennessee. The event focused on Southeastern states and best practices for developing, funding, and building new projects. The two-day meeting featured GIIA members discussing legal issues related to public-private partnerships and the benefits of augmenting state and local dollars with private funds. NGA plans to continue regional gatherings in the Northeast, Great Lakes, Northwest, and Southwest in 2024.

The US Department of Transportation announced funding for several regional infrastructure accelerators, which are entities designed to expedite the delivery of transportation infrastructure projects at the local and regional levels. GIIA joined the Build America Center this month to host officials from the accelerators, where we discussed cross-region collaboration and building capacity within state and local communities, and how to take advantage of innovative financing for infrastructure.

UK news

By Nick Elliott, Policy & Public Affairs Manager

November has seen significant government activity aimed at reshaping the UK's investment landscape. The Chancellor's Autumn Statement was a step in the right direction as the Government recognised the need for reforms in economic regulation, tax incentives, and planning timelines. The permanent extension of the full expensing regime and acceptance of Lord Harrington’s headline recommendations for foreign direct investment are vital steps toward revitalising global investor confidence in the UK market.

As part of our advocacy efforts, we hosted a roundtable with the Minister for Investment, Lord Johnson, alongside GIIA members. We focused on actions needed to assert the UK’s position as a prime destination for private infrastructure investment, and the planned improvements for the AR6 & AR7 offshore wind auctions. Following this, we were pleased to see the government’s announcement of a 25% increase in average strike prices and a 66% rise in offshore wind strike prices for the AR6 allocation round.

Our engagement with the Department for Business and Trade (DBT) has been heavily focused on the government’s wider review of economic regulation, including the implementation of a growth duty across key bodies such as Ofwat, Ofgem, and Ofcom. This proposal is aimed at fostering a more dynamic regulatory environment, one that not only safeguards public interest but also stimulates investment and growth in the infrastructure sector.

Our annual conference at Ashurst's offices in London featured both sides of the political divide and leaders of important stakeholders. Lord Harrington previewed his review of foreign direct investment, while Nick Thomas-Symonds MP, shadow cabinet office minister, spelt out some of Labour’s infrastructure policy thinking. John Flint, CEO of the UK Infrastructure Bank, and James Heath, CEO of the National Infrastructure Commission both focused on the UK’s investment needs Together their insights provided a framework for the future investment climate and the role of investors in achieving the country’s ambitious net-zero objectives. We were pleased to receive very positive feedback from members attending the conference.

Looking ahead, we will develop a response to the upcoming Review of Electricity Market Arrangements (REMA) consultation and are holding a roundtable discussion with members and Labour's shadow DEFRA team as the party develops it policy the water sector. As we head into election year, our attention is shifting towards formulating a comprehensive strategy for engaging with both the Conservative and Labour parties, so that investor interests are well understood by the next government. To ensure our approach is well-rounded and impactful, I would greatly value the input of members. Your perspectives and suggestions will be instrumental in defining how we navigate this engagement and the specific narratives we put forward to represent our collective interests and visions.

For further inquiries or discussions on our policy positions, please contact Nick Elliott: nelliott@giia.net.

EU news

By Harvey Chandler, Senior Policy & Public Affairs Manager

In this month’s EU roundup, we look at some of the major developments around classifying investments under the Sustainable Financial Disclosure Regulation (SFDR) , the launch of the Hydrogen Bank and two recently published reports covering the investment environment and investor sentiment towards the EU.

In a notable development for investors, an open consultation on the EU’s Sustainable Financial Disclosure Regulation is seeking views on the reclassification of investments away from Articles 8 and 9 to develop a “more precise EU-level product categorisation system based on precise criteria”. The Commission is considering two potential options, including building on the distinctions between Article 8 and 9 (e.g. around environmental and social characteristics, and do no significant harm) with additional criteria, or switching to a different approach such as focusing on the investment strategy and removing the use of Article 8 or 9. See page 30-31 of the linked consultation for more information. If you are interested in discussing the issue or contributing to a GIIA submission, please contact Vlad Benn at vbenn@giia.net.

The first Hydrogen Bank auction with €800 million of subsidies for renewable hydrogen production is now live, with results expected in April 2024. The pilot auction will help the Commission assess the appetite for investments in the hydrogen pipeline and for support, before launching a second auction totalling €3 billion in Spring 2024. In a recent speech to kick off European Hydrogen Week, Commission President Ursula Von Der Leyen was keen to stress the EU’s work to secure commercial offtake agreements and attract private finance. The EU is also working to secure supplies of green hydrogen for import, including through investments in a new 10GW Green Energy Park in Brazil. The development of the EU’s strategic approach to hydrogen remains an interest area for investors going into 2024, given positive steps forward this year at an EU and member state level.

Following agreement on the Fitfor55 transport decarbonisation package, debate is brewing over which transport modes will gain priority access to green fuels and how to reduce emissions from modalities not covered within the package. Last week, the European Parliament agreed its negotiating position on how to reduce air pollution from trucks and buses, and is  pushing for major reductions in CO2 emissions, ranging from 45% in 2030-34 to 90% in 2050. Parliament’s Rapporteur on the issues, Bas Eickhout, believes the Parliament’s position will provide clarity for manufacturers and those investing in technologies and infrastructure related to electrification and hydrogen. GIIA continues to press for a technology-neutral approach on fuel infrastructure, given the scale of the challenge to decarbonise and the need to foster rather than harm innovative approaches to complex challenges across modalities.

Publication of the GIIA-partnered Global Infrastructure Index and Pulse Survey, which track the investment environment and sentiment respectively, shows the EU continues to be an attractive place to invest, with four of the top 10 countries in the Index located in the EU. Germany, the Nordics and France perform most strongly across both trackers. Nevertheless, ongoing concerns around grid access, bottlenecks in pipelines, regulatory and planning concerns continue to factor into investment decisions, and will require more focus through the remainder of 2023 and into next year. GIIA is continuing to address these concerns in the EU, and welcomes some of the more positive developments such as those included in the European Wind Power Package.

Insight for investors - exploring market strategies

By Vlad Benn, Policy & Research Manager

Our latest pulse survey provides insights into investor sentiments about different markets, offers a window into investment strategies and capital deployment patterns, and explores primary ESG considerations during the investment process. 

Read the insights here. 

News from our members

DigitalBridge commits $1.1bn to digital infrastructure

The fund's credit strategy will focus on delivering investment solutions to support growth of companies across digital infrastructure sector

GIIA members behind new, net zero direct emissions ferry

Scandlines - owned by Igneo, 3i and Federated Hermes - this week launched a 100% electric ferry to connect Denmark and Germany

IFM Investor signs MoU with UK government

IFM has announced its intention to invest £10bn in the UK by 2027 across large-scale infrastructure and energy transition projects

For press enquiries or to feature in our next email newsletter or website guest post, email press@giia.net.