Remarks by Mr. Ban Ki-moon at the Parallel Forum on Capital Mobilization for Sustainable Infrastructure at the First High-Level Conference of the Forum on Global Action for Shared Development

Distinguished guests, ladies and Gentlemen,

It is a privilege to address you today on the critical issue of capital mobilization for sustainable infrastructure. As we face tremendous problems such as climate change and rising urbanization, the demand for robust and sustainable infrastructure has never been greater.

I commend President of the Asian Infrastructure Investment Bank for his commitment to multilateralism and his visionary ideas for the Multilateral Development Banks (MDBs) to work better together. The AIIB started its operations in 2016 shortly after the signature of the Paris Agreement, and has since adhered to its pledge to be “lean, clean, green”. We applaud AIIB’s commitment to scale up its annual climate finance approvals to at least 50 percent of total approved financing by 2025; and welcome AIIB’s decision that starting from July 1st, 2023, all AIIB’s new investment operations will be consistent with low-carbon and climate-resilient development pathways.

Infrastructure is critical in shaping economies, raising living standards, and facilitating social progress. Traditional approaches to infrastructure funding, on the other hand, fall short of addressing sustainability concerns. Today, I'd want to talk about three critical features of capital mobilization for long-term infrastructure.

To begin, cultivating a mentality shift toward long-term investing is critical. Investors, both public and private, must shift their focus away from short-term advantages and toward long-term benefits of sustainable infrastructure. We may divert funding to projects that promote environmental protection, social inclusion, and economic viability by embracing the notion of sustainability.

Second, teamwork and innovation are critical. To close the funding gap, we need new ideas and inventive solutions. Partnerships between the public and private sectors can harness private sector knowledge while ensuring public benefit. Collaboration among the United Nations, financial institutions, governments, and multilateral development banks is critical for risk sharing, improving due diligence, and mobilizing funding for long-term infrastructure.

Third, the importance of green and sustainable financing cannot be overstated. Green bonds and green funds, for example, provide a framework for aligning financial flows with environmental and social aims. They promote the incorporation of environmental, social, and governance (ESG) considerations into investment decisions, thereby directing resources to projects with a favorable environmental impact.

Policies that incentivise and reward sustainable investments are required to facilitate capital mobilization. Regulatory frameworks can encourage responsible investment, provide tax breaks, and promote transparency and accountability. Furthermore, capacity-building activities can improve investors' and project developers' abilities to identify, structure, and manage sustainable infrastructure projects.

Furthermore, strengthening developing countries' access to financing is critical. We can ensure that sustainable infrastructure becomes a worldwide priority through collaboration and financial support from international institutions such as the Asia Infrastructure Investment Bank. Providing developing countries with technical support and resources can help them overcome the finance gap and build infrastructure that contributes to sustainable development. Here I see an opportunity for the United Nations and AIIB working together. AIIB can benefit from the UN’s convening, connecting and catalyzing role. With a UN Country team present in over 130 countries, including in China the UN has boots on the ground.

Let me elaborate further. The United Nations can play a crucial role in promoting sustainable infrastructure development through various means. I will make 3 points here:

One, the UN acts as a global platform for knowledge sharing and best practices, facilitating dialogue and cooperation among member states, promoting the exchange of ideas, and fostering international collaboration.

Two, the UN supports developing countries in capacity building, providing technical assistance, and mobilizing resources for sustainable infrastructure projects.

Three, it advocates for policy coherence and the integration of sustainability principles in national development plans and strategies. Moreover, the UN promotes the use of innovative financing mechanisms, green funds, and partnerships to attract investment for sustainable infrastructure. By leveraging its global reach and convening power, the UN can drive sustainable infrastructure development and contribute to the achievement of the Sustainable Development Goals.

Finally, capital mobilization for sustainable infrastructure necessitates a paradigm shift, as well as innovation, collaboration, and the use of green financing tools. By embracing these ideas and cooperating, we can create a more resilient, inclusive, and sustainable world.

Ladies and gentlemen, you might be wondering why I keep referring to the UN even though I am no longer the UN Secretary-General. The reason lies in my extensive experience within the organization and our close cooperation with the UN in China. I am confident that Secretary-General Guterres would agree with me.

Investing in sustainable infrastructure is instrumental to accelerating global growth after the pandemic, when the progress on implementing the SDGs is tremendously off track, and the humanity is faced with existential threat of climate change. The Asian Development Bank foresees enormous opportunities to deliver ecologically sensitive and climate- and disaster-resilient infrastructure investments, including the need for its developing member countries (DMCs) to invest $26 trillion in infrastructure from 2016 to 2030, or $1.7 trillion per year. Under the seven operational priorities of its Strategy 2030, the ADB provides a broad range of integrated solutions to mitigate the direct impacts of the pandemic and accelerate the transition toward a green, resilient, and inclusive recovery.

The UN is already exploring venues to collaborate with MDBs including with AIIB to galvanize support for the 2030 Agenda. Last month, Ms. Amina Mohammed, the Deputy Secretary-General of the United Nations visited AIIB. She worked with me as the chief negotiator for the SDGs bringing member states together. We had a call to discuss collective efforts by UN agencies and MDBs to accelerate the global progress on the Sustainable Development Goals. 

Let us take this chance to reimagine the future of infrastructure funding and leave a legacy that will benefit future generations. We can create a society where sustainable infrastructure serves as a foundation for economic growth, social progress, and environmental preservation by working together.

Thank you very much.