The Importance of Infrastructure in the Transition to Low Carbon
Part Two: Climate Change Risks in the Infrastructure Sector
Recently the UN Intergovernmental Panel on Climate Change (IPCC), which is the United Nations body for assessing the science related to climate change, published a report highlighting the long-lasting impacts of global warming and the increasing “likelihood of severe, pervasive and irreversible impacts for people and ecosystems”.1 Unsurprisingly, the report confirmed that substantial emissions reductions are required to reduce the risks associated with climate change.
In the first part of this three-part series, we looked at just how worrying the current situation for climate change is, emphasising that a serious, global, and coordinated effort is required urgently to avoid disaster. Infrastructure has a key role to play in this effort as a sector which is both due to be impacted by climate change and a major carbon emitter.
This second part of the series looks at the various costs and risks which the investor needs to carefully examine in order to successfully navigate the infrastructure asset class.
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