Investing in Green Infrastructure: Experts' Recommendations

Investing in Green Infrastructure: Experts' Recommendations

As Nepal stands at the early stages of infrastructure development, stakeholders have been advised to focus on investing in sustainable and green infrastructure for long-term benefits. This recommendation emerged during the first session of the Nepal Infrastructure Summit 2024, jointly organized by the Ministry of Physical Infrastructure and Transport and the Confederation of Nepalese Industries (CNI) in the capital.

The session on "Sustainable Development" featured experts including Dr. Rekon Chung, board member of the Ban Ki-moon Foundation for a Better Future from South Korea; Dr. Dennis Ganendra, CEO of MinConsult Malaysia; Robert Dobias, advisor at the Climate Change Centre, National Research Council of Thailand; and Arup Rajouria, chairman of Climate Change and Co-Existing Worldwide (CCCEW). They shared insights on integrating green practices into infrastructure development.

Highlighting that Nepal’s infrastructure development is still nascent, the experts emphasized the importance of aligning with nature rather than solely relying on concrete solutions. They argued that investing in green infrastructure is essential for achieving sustainable development. They called for infrastructure projects that minimize environmental impact, utilize low-carbon raw materials, and prioritize mass transportation over private vehicles.

Dr. Rekon Chung noted that South Korea has realized the mistake of focusing solely on traditional infrastructure investments and is now pivoting toward green-focused projects. He emphasized the need to consider carbon social costs and climate change impacts in infrastructure development, stating, "Without this consideration, we cannot develop infrastructure correctly."

Robert Dobias echoed the sentiment, urging for development that does not disrupt natural ecosystems. Dr. Dennis added that a circular economy approach is necessary in the current economic landscape, encouraging the private sector to invest in green infrastructure innovations.

The experts also pointed out that climate change poses uncertainties for future infrastructure, necessitating planning that accounts for how new projects can mitigate these risks. They stressed the critical role of the private sector in mobilizing investment for green infrastructure, highlighting that while returns on green investments may be lower, governmental support at the policy level is crucial.

 

A unified approach, including advancing green bonds, was suggested to facilitate investments in green infrastructure.

Rajesh Kumar Agrawal, President of the CNI, who chaired the session, underscored that sustainable development is no longer a distant goal but essential for both Nepal and the world. He stated, "Sustainable infrastructure is the capital for Nepal's long-term prosperity," emphasizing the need for projects that are environmentally sound, socially inclusive, and economically viable. He proposed five financial tools, including private equity infrastructure funds and local currency bonds, to mobilize resources for infrastructure development.

The session was facilitated by Prof. Dr. Shobhakar Dhakal.