Gaps in investments for Infratrucures is estimated at over 35billions a year, or about 11% of the 350billions US$ spent annually. These gaps are stemming from an aging infrastructure not properly maintained or replaced in the developed economies, or from a shortage of investments required to cope with the growth in emerging economies. Years of chronic underinvestment in critical areas such as transportation, water treatment, and power grids are now catching up with countries around the world. If these gaps continue to grow, they could erode future growth potential and productivity.
It is estimated by the McKinsey report Bridging global infrastructure gaps that the gap is widening to a present 350billion $ annually.
The Sustainable Infrastructure Imperative
According to the 2016 report of the New Climate Economy Group, Investing in sustainable infrastructure is key to tackling the three central challenges facing the global community: reigniting growth, delivering on the Sustainable Development Goals, and reducing climate risk in line with the Paris Agreement. Transformative change is needed now in how we build our cities, produce and use energy, transport people and goods, and manage our landscapes. And the challenge is urgent.
Achieving this will require that the world is investing around US$90 trillion in infrastructure over the next 15 years, more than is in place in our entire current stock today. By 2050, two-thirds of the global population will live in cities, and over 70% of the global demand for infrastructure over the next 15 years is expected to be in urban areas. Energy will acount for 28% of this amount, or US$ 25 trillion. And we will need majorInvestments in improving and extending the Land Use, to meet requirements to provide the world’s people with benefits such as water filtration, fibre, fuel and livelihoods, and especially the growing demand for Food supply of 70% by 2050.