Go cloud-native. Make your processes automatable and repeatable without human intervention. Connectivity of tomorrow Advanced networking offers a continuum of connectivity that can drive development of new products and services or transform inefficient operating models. Trends in action: Agencies can break through existing connectivity limitations when new networks give more power to field workers. Field-deployed personnel will soon have greater bandwidth on their mobile devices than they have at their desks today. Are your current processes and systems ready to adapt?
Advanced connectivity can extend AI, image recognition, facial recognition, and other tools into the field. Getting started: Plan for the upcoming explosion of bandwidth. A wirelessly connected world will bring changes that bring new demands and new opportunities. Learn from history. Smartphones changed the ways we keep and use data. What parallel changes are ahead? Button down the status quo. If millions of new devices are soon to arrive, every existing mobile asset must be under control.
Sustainability Trends: A Global Perspective
Begin getting everything under control today. Intelligent interfaces Intelligent interfaces combine the latest in human-centered design with leading-edge technologies such as computer vision, conversational voice, auditory analytics, and advanced augmented reality and virtual reality. Trends in action: Caseworkers can use VR to face simulated situations. Technicians can learn to repair machines virtually. Virtual teams can collaborate more naturally. With tablet-based AR, skilled technicians can move from one system to another without extra training. Inspectors can use facial and image recognition with speech capture interfaces.
Indirect measures of activity time and personnel efficiency permit digitalization and analysis. Getting started: See beyond the long-established standards. Take advantage of new ways to connect and learn. Unlearn limits. How can intelligent interfaces observe, track, measure, and monitor without deliberate user actions like typing and clicking?
Quasi-public entities in the financial sphere may resemble businesses in their demand generation needs. Data-based tools can make this outreach more effective. Service programs can use advanced marketing techniques to engage the population, gauge reactions, and adjust rollouts. Getting started: Look beyond marketing. Leading organizations are rethinking all of the ways constituents interact with them.
Create connections. Go all-in on data. Collect and manage information from your customers to better understand the interactions they desire. Fail forward fast. Approach experience evolution with an experimental, pilot-based mindset, and advance through rapid prototyping.
DevSecOps and the cyber imperative To enhance their approaches to cybersecurity and cyber risk, forward-thinking organizations are embedding security, privacy, policy, and controls into their evolved IT delivery models. Past experience with implementing Agile techniques may prove useful. The National Institutes of Health and the Food and Drug Administration are working to standardize, automate, and virtualize processes using close-knit teams that integrate development, security, and operations to reduce human error, speed results, and make difficult operations invisible to the user.
Getting started: Integrate security. Expand your security culture. Compliance is still important, but the focus now is on proactive risk management. Pick bold goals. Beyond the digital frontier: Mapping your future Digital transformation has become a rallying cry for business and technology strategists. Trends in action: To make the most or technology adoption, public agencies are finding useful lessons in the private sector—and vice versa.
Cashier-less stores could serve as an interesting pattern for Department of Defense Exchanges. Health care insurers AI-enabled verification of eligibility for medical procedures can be utilized by government health providers. Companies are increasingly using AI and other digital techniques to screen recruits. Getting started: Build a recipe file. Look for examples. CEOs are leading the way through investments, innovation and strategic decisions, toward a more environmentally and economically sustainable future.
For over a decade, Business Roundtable CEOs have been a leading voice for the sustainability business case — demonstrating that environmental sustainability and economic growth in the U. Can't find what you are looking for? Try the archive search. It provides access to data on climate risks, guidance on developing adaptation strategies, case studies and information on potential funding opportunities. Enabling climate resilience through policy and regulation Public policy and regulation play a key role in enabling and promoting climate-resilient infrastructure development.
Climate change risk assessments and adaptation measures need to be integrated across existing policy processes and decision cycles. This process of mainstreaming requires the identification of suitable entry points at multiple levels of decisionmaking: national, sectoral, project level and local level. Adaptation choices at these different levels are often linked, so that a decision at the national level may enable or constrain adaptation options at a local level.
They also interact with other policy objectives, creating synergies and trade-offs. It is therefore important to adopt a whole-of-government approach to adaptation planning OECD, National policies National adaptation planning can help identify entry points for mainstreaming, and promote cross-sectoral coordination. Most OECD and G20 countries have, or are developing, national adaptation strategies and plans that address one or more core infrastructure sectors, such as transportation, energy, and water.
Local governments are also developing adaptation strategies or plans, particularly in federated countries such as Canada, where most local governments have adaptation strategies or plans OECD, Infrastructure adaptation to climate change can be facilitated by incorporating climate risk into broader infrastructure planning frameworks, as well as the critical infrastructure protection programmes that are in place in over 20 OECD countries OECD, In the UK, for instance, major infrastructure project applications are reviewed by the Planning Inspectorate to ensure compliance with a set of National Policy Statements that include an explanation of how to account for climate change adaptation.
Developers of major projects are providing evidence to inspectors of how they have considered the latest climate projections, and taken into account climate robustness to extreme changes beyond the range provided by those projections, in their project proposals. Spatial planning can help reduce infrastructure exposure to climate hazards by determining the possible locations for different types of infrastructure.
It can also facilitate ecosystem-based approaches to adaptation, by maintaining restrictions or creating incentives that protect ecosystems e. Box 6 provides an example of how South Africa is promoting Ecosystem-based Adaptation. Spatial planning frameworks tend to be established nationally, but local authorities are involved in their implementation and may issue their own regulatory requirements.
For example, the Danish parliament passed a law enabling municipalities to account directly for adaptation in local city planning decisions. The new law allows municipalities to ban construction in certain areas solely due to reasons relating to climate change adaptation OECD, SEA and EIA A key element of mainstreaming adaptation into infrastructure is the integration of climate risks into the decision-support tools used in standard policy and project appraisals. A Strategic Environmental Assessment SEA 1 designed to account for climate risk can serve as a tool for mainstreaming adaptation into infrastructure-related policies, plans and programmes.
The Netherlands, for example, used an SEA in the development of a Delta Programme to protect the country against sea level rise and more severe rainfall. EbA encourages the use of ecological infrastructure as a complement or substitute for built infrastructure. Ecological infrastructure includes healthy mountain catchments, rivers, wetlands, coastal dunes, and nodes and corridors of natural habitat, which together form a network of interconnected structural elements in the landscape. The Strategy identifies four areas of work that will contribute towards achieving this vision.
These are structured into the following outcomes 1 Effective coordination, learning and communication mobilises capacity and resources for EbA, 2 Research, monitoring and evaluation provide evidence for EbAs contribution to a climate-resilient economy and society, 3 Integration of EbA into policies, plans and decision-making supports an overall climate change adaptation strategy, 4 Implementation projects demonstrate the ability of EbA to deliver a wide range of co-benefits.
At the project level, Environmental Impact Assessments EIA provide a natural entry point for considering whether infrastructure projects are vulnerable to climate change or could exacerbate climate risks elsewhere. In South Africa, a mandatory EIA was conducted for the expansion of the Port of Durban that included a dedicated report on climate change risks. As a result of the EIA, changes were made to the original design, including making the port higher to cope with sea level rise and developing an environmental management plan to address heavier rainfall and winds Kolhoff and Van den Berg, In some cases, governments may need to revise their EIA legal frameworks to promote a more consistent and comprehensive consideration of climate risks in infrastructure development.
Technical codes and standards Regulatory standards, such as technical codes, are being reviewed and strengthened to promote climate resilience. For example, in the New York state utilities regulator Public Service Commission approved a settlement requiring power utility Con Edison to use state-of-the-art measures to plan for and protect its electric, gas and steam systems from the effects of climate change. Modifying economic regulations can also lead to more resilient infrastructure, by removing barriers to investment in adaptation measures.
Energy, water and rail regulators in the United Kingdom, for instance, aim to refine their price control review mechanisms to reflect longer asset life spans, and encourage a focus on longer run issues and better management of uncertainty. National governments are revising national technical standards to account for climate resilience. The Commission on Process Safety in Germany, for instance, has updated its technical rule on precipitation and flooding for flood safety of plants subject to the German Major Accidents Ordinance, while the Korea Expressway Corporation has strengthened the design requirements for drainage capacity, bridge design and embankment slopes.
The CEN is amending and extending the scope of the European civil engineering technical standards Eurocodes , with a focus on transport and energy infrastructure, as well as building and construction. They are also amending product standards to account for climate change. The ISO is working through its Adaptation Task Force to develop a set of standards for vulnerability assessment, adaptation planning, and adaptation monitoring and evaluation ISO, Both of these reviews cover the assessment, re-use and retrofitting of existing infrastructure, as well as the design of new developments.
The development of new standards or the modification of existing ones to better account for climate change increases the extent to which the relevant climate risks are managed as a matter of course. An underlying challenge in achieving this is the tension between two goals: establishing standards that are straightforward and can be applied consistently, while also taking into account the uncertain and context-specific nature of climate risks.
Where risks are context specific, care should be taken to ensure standardised approaches do not lead to systematic over- or under-investment in resilience. Facilitating climate risk disclosure Increased public disclosure of climate risks2 can support infrastructure resilience by informing investment decisions. The process of reporting can also. This section focuses on the disclosure of physical risks from climate change.
Government policies can be used to encourage or require risk disclosure by the private sector, but this is at an earlier stage for climate resilience than mitigation. Fifteen G20 countries had mandatory greenhouse gas reporting in place in , while the situation for climate resilience is more complex. In principle, this covers the physical risks from climate change, but this does not happen consistently.
Article , Law on Energy Transition for Green Growth France - listed companies are required to report on climate change impacts, or explain why they have not done so. Companies are encouraged to include disclosure of physical climate risks in their reports.
Adaptation Reporting Power United Kingdom this gives the government the power to require many types of infrastructure providers to report on their exposure to climate risks. The first round of reports were mandatory, but it is now being used on a voluntary basis. For the purpose of this report, financial climate risks refer to physical risks which can be event driven acute or longer-term shifts chronic in climate patterns. These are different from transition risks, which are financial risk associated with the transitions to low GHG economies.
These initiatives provide considerable flexibility in how companies choose to report climate impacts. This framework calls for the reporting of, inter alia, physical risks relating to the impacts of climate change, with a focus on the following areas Task Force on Climate-Related Financial Disclosures, : governance, risk management, strategy and metrics. Climate risks do not have a single metric, equivalent to the tonnes of CO2eq that is commonly used for mitigation3.
Yet investors and lenders need to have reasonably comparable and usable data with which to compare the characteristics of their investments. The TCFD guidelines suggest indicative metrics to consider using to inform investment decisions, but identifies the development of methodologies, datasets and tools as an area where further work is required.
Frameworks for risk disclosure should be tailored to national circumstances. Developing countries will be particularly adversely affected by climate change, but also rely upon investment for economic development. Approaches to climate risk disclosure, and incorporation of these risks into decision-making, should be designed to avoid deterring investment in developing countries. Approaches to disclosure should also account for differences in capacity and the sophistication of financial markets to avoid generating undue administrative burdens.
Voluntary guides, toolkits and standards for disclosing climate risks Tools for disclosure should encompass both the physical vulnerability of specific assets, and examine whether management responses are sufficient to ensure continual management of climate-related risks. Relevant initiatives are being developed to support this ambition. For example, EBRD and the Global Centre of Excellence on Climate Adaptation CGECA are currently developing metrics for climate risks and opportunities, and identifying how climate risk information can be incorporated within financial reporting systems.
There is a growing number of private sector and voluntary initiatives to support risk disclosure, aimed at different audiences. Infrastructure developers and engineers Climate resilience is now being integrated into frameworks of voluntary sustainability rating programmes. Potential benefits of these ratings include increased performance, reduced costs and marketing advantages. They provide a consistent form for tenderers to require, and bidders to demonstrate, compliance with sustainability objectives. There are no comprehensive statistics available on the extent to which infrastructure is being covered by these rating programmes, but the value of rated assets remains a small proportion of total investment.
However, there are initiatives underway to increase use of these tools. Investor initiatives Investors are taking an increasing active role in requesting information on the exposure of their assets to the risks of climate change. These risks include physical risks from climate change, and those arising from the move to a low-GHG economy. Voluntary disclosure initiatives have been developed to meet this need. They include analysis of the risks from climate change within broader frameworks of sustainability. If designed well, they have the potential to encourage infrastructure owners and operators to improve their management of climate risks.
There are, nonetheless, differences in the climate and other effects of long-lived and short-lived greenhouse gases and other climate pollutants that are captured by the CO2eq metric. CDP - this global reporting framework covers a range of sustainability issues, including climate resilience. They report that investors, representing USD 87 trillion of assets under management request information under this.
The modules include some metrics relevant to climate risks. Sustainability Accounting Standards Board SASB - this initiative, based in the United States, provides guidance for corporations on how to disclose material sustainability information through their financial reporting. The framework includes 79 industry standards identifying. Further refinements of these initiatives will help to ensure that they are effective in encouraging companies to consider climate resilience in their operations. In particular, the metrics relevant to resilience are generally expressed in non-financial terms e.
The TFCD recommendations are encouraging further work in this area to refine metrics and encourage harmonisation between systems. This section explores how climate resilience can be mainstreamed into the identification, design and financing of infrastructure projects. It identifies mechanisms through which public support can help to mobilise private finance for climate resilience. These mechanisms will be most effective when combined with the measures to strengthen the enabling environment section 3.
Climate impacts will have implications for existing global infrastructure investment needs, including increasing, decreasing, or re-directing particular investment needs in relevant sectors, particularly flood defences, and water supply and sanitation. Natural infrastructure and other flexible or innovative approaches to climate-resilient infrastructure may even be cheaper than traditional approaches in some circumstances.
The increasingly severe impacts of climate change later in the design life of the project are likely not to be considered by. For Public Private Partnership PPP contracts, it is important to clarify the allocation of responsibilities regarding climate-related risks planning, management and response. Lenders and public funders are increasingly using risk screening to identify infrastructure that may be vulnerable to climate change. One of the emerging lessons is that screening should be combined with support to generate solutions to the risks that have been identified in the screening process.
Public finance and policies can be used to mobilise private finance for climate-resilient infrastructure. Blended finance can be used to improve the risk-return profile of investments where appropriate, in combination with efforts to improve the enabling environment for private investment. Scaling-up finance for climate-resilient infrastructure There is already a significant gap between total projected infrastructure needs and trends in infrastructure investment. Thus, rather than being looked at in isolation, there is significant scope for mainstreaming climate resilience considerations as part of broader efforts to address this existing infrastructure investment gap.
Climate impacts will have implications for existing global infrastructure investment needs. There are no comprehensive estimates of these needs for G20 countries, but sectoral estimates provide some indications of the potential scale of investment needs and allow for more detailed analysis than is possible at the global level. The estimates that exist are not directly comparable due to differences in assumptions and methodologies OECD, a. Hinkel et al. National-level estimates tend to be higher than the global results would suggest. These estimates help clarify the scale of funding needs for climate-resilient infrastructure, but the costs for a given project will vary widely depending on context.
More resources will be required at the project development and design phases to consider climate risks.
Health inequalities: a global perspective
Depending on the climate resilience measures required, implementation costs could be negligible, negative or they could require significant changes in project design. There can be a strong business case for making these investments in climate-resilient infrastructure. The global studies cited above all find that the benefits of investing in resilience outweigh the costs. In a different context, analysis of Alaskan infrastructure resilience finds high ratios of benefits to costs Melvin et al.
Natural infrastructure and other flexible or innovative approaches to climate-resilient infrastructure may even be cheaper than traditional approaches see Box 7. Financing for climate-resilient infrastructure will require a mixture of public and private resources. There are no comprehensive data on the finance flows for climate-resilient infrastructure, thus it is not possible to assess the relative roles the public or private sector is currently playing in financing climate-resilient infrastructure.
However, finance flows for adaptation from public sources, including governments, bilateral development finance providers, multilateral climate funds and development banks and development finance institutions continued an upwards trend in UNEP, There are currently insufficient data to assess trends in private sector financing for climate resilience. Development finance institutions — national, bilateral and multilateral — all play an important role in supporting climate-compatible infrastructure, both by financing infrastructure projects as well as supporting the necessary policy change required to make infrastructure low GHG and climate-resilient.
They are also increasingly key players in supporting countries to mobilise-investment, by developing infrastructure pipelines, by investing in new greenfield projects and by de-risking infrastructure investment and mobilising private investors. Amongst the major multilateral development banks MDBs infrastructure financing still remains a key activity, accounting for USD 31 billion in Miyamoto and Chiofalo, Some banks — namely, the Asian Development Bank, African Development Bank and Islamic Development Bank, allocated more than half their portfolios to infrastructure in Comparing the scale of financing for climate resilience with financing for climate change mitigation is difficult to do, given the former is typically reported in terms of incremental cost i.
However, the fact that approximately half of this incremental adaptation finance went towards infrastructure suggests that the total value of climate-resilient infrastructure could be significant, even when compared to mitigation4. Developing these pipelines and supporting institutions can yield the following benefits OECD, :. Mainstreaming resilience into infrastructure pipelines and pathways All infrastructure sectors will be affected by risks arising from climate change, albeit to varying extents. It will be essential to mainstream climate resilience, in a proportionate way, throughout the full pipeline of projects to ensure that they are consistent with future climate change scenarios.
Ensure that the cumulative total of projects being planned is consistent with overall objectives. Cloudbursts sudden heavy rainfalls are predicted to become more severe in Copenhagen as a result of climate change. During these periods of heavy rainfall, the drainage capacity of the sewers can be overwhelmed, leading to flooding. A cloudburst in led to damages of more than EUR million from flooding. The Cloudburst Plan identified an initial set of measures would be required to address the rising hazard from increased periods of rainfall. These have been subsequently developed and refined:.
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Property-level measures: these measures reduce damages when floods occur, including anti-backflow valves to prevent sewer water from entering basements. Green space and waterway restoration: this can help to facilitate the flow of water and provide additional amenity value. Grey infrastructure: a tunnel would be built to enhance drainage capacity in heavily built-up areas, roads are to be redesigned so that they can be used to channel excess rainfall to the sea.
Overall, the combined measures to address cloudbursts are expected to yield net benefits of DKK 3 billion EUR million , compared to net costs of DKK 4 billion EUR million that would be incurred for the traditional solution. Source: City of Copenhagen, Establish responsibilities and delineate accountability for actors relevant to delivering the pipelines, e. Improving the quality and availability of relevant infrastructure projects is a first step in making those projects resilient to climate change. Infrastructure pipelines can help to do this by signalling the availability of bankable projects.
The degree of mainstreaming is also variable, with some identifying additional projects relevant for climate resilience, while others focus more on the enabling conditions for infrastructure. More generally, there is a need to ensure that infrastructure pipelines are publicly available and clear in specifying the targets for infrastructure provision and associated budget OECD, b. A strategic approach is required to examine the implications of climate change, along with.
These go beyond lists of potential projects in infrastructure sectors to create sequenced packages of investment that consider interconnections. The use of pathways makes it possible to identify a wider range of options for addressing uncertainty than would be possible when focussing at the level of individual projects. This is still an evolving area, but some emerging practices are shown in Box 8.
Ensuring that public procurement accounts for the benefits of climate resilience Procurement policies can be used to ensure that publicly financed infrastructure is resilient to the effects of a changing climate. Given the scale of public investment, procurement can also have an indirect impact in shaping the products offered and structure of relevant market places World Bank, Delta Programme Netherlands : the Delta Programme is responsible for protecting the Netherlands against flooding and ensuring freshwater supplies.
Colorado River Basin United States : the Colorado River Basin provides water for 30 million people and is under pressure from growing demand and changing hydrology. Robust Decision Making was used to identify the main drivers of vulnerability, which can then be monitored to identify when options are no longer appropriate and develop dynamic portfolios of options for managing supply and demand. The approach was dynamic, identifying the actions that needed to be taken in the near-term and those that could be implemented depending on circumstances Groves et al. National Infrastructure Commission United Kingdom : this commission is required to deliver a national infrastructure assessment to each parliament every 5 years.
This is informed by integrated models produced by a consortium of seven universities the Infrastructure Transitions Research Consortium. The procurement process should account for the value of climate resilience. As discussed above, considering resilience will often entail additional upfront capital or operational expenditures. Potential providers of resilient infrastructure will be at a competitive disadvantage unless the benefits of resilience are accounted for.
Decision-support tools, such as cost-benefit analysis, should consider the range of potential benefits of enhanced resilience. In the UK, this was achieved by producing supplementary guidance for the normal appraisal framework HM Treasury and Defra, Procurement policies can facilitate innovation in the provision of climate-resilient infrastructure by specifying objectives rather than mandating the use of specific technologies Baron, In such contexts, it is important that the objectives include transparent recognition of climate change when specifying those performance standards, e.
The development and adoption of recognised standards relating to infrastructure will facilitate this process. Procurement policies at the urban and other subnational levels of government are also important. Research commissioned by the Greater London Authority found that it would be consistent with their legal duties to integrate climate resilience into their procurement LCCP, Given the potential complexity of the topic, and capacity constraints, it recommended the sharing of good practices between subnational governments.
However, efforts are underway to increase uptake. More transparency is needed about the extent to which climate risks are included in public procurement frameworks. UN Environment finds that the use of sustainable public procurement is increasing, and that two-thirds of the countries they examined consider climate change mitigation. This study does not consider adaptation or resilience.
Screening infrastructure projects for climate risks Financing institutions and public funders are increasingly using risk screening as part of their approval processes for new infrastructure projects see Box 9. The use of mandatory screening for projects complements the voluntary disclosure of climate risks by organisations, which is discussed in section 3. The European Union examines major projects co-financed by the European Structural and Investment Funds for the period to consider climate risks.
Projects being. Queensland and Tasmania Australia : these states require cabinet submissions for government projects to consider potential climate risks. The Queensland Climate Ready Infrastructure initiative requires local governments to consider climate change adaptation when applying for infrastructure grants to the Queensland Government.
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- Climate-resilient Infrastructure: Policy Perspectives by OECD - Issuu.
Infrastructure funding is linked to meeting these criteria. WCX aims at developing innovative methods to finance and facilitate the development of infrastructure in the region by developing a framework for infrastructure investment and principles for certification. National Investment Plan Costa Rica : the Costa Rican national investment plan for required all new infrastructure projects to meet resilience objectives.
The Inter-American Development Bank IDB has committed to screening all projects for climate risks from , having already undertaken pilot studies in a number of countries. Climate risk screening is an essential element of mainstreamed approaches, but its impact can be limited if it is implemented in isolation. Ensure that users have access to credible and consistent data sources for undertaking risk screening, accounting for uncertainties.
Strengthen links between risk-screening tool developers and users to ensure that they are fit for purpose. Integrate into lending processes at a stage where there is still scope to make revisions, balancing against the need for the project to be sufficiently well-specified to undertake the risk screening process. Provide support to help users develop climateresilient solutions to the risks that have been identified in the screening process.
A two-stage process is used for this screening. The first step undertakes a rapid assessment to identify whether the vulnerability to climate risks is high, medium or low. Projects that are scored as high or medium are then subject to a more detailed assessment.
The detailed assessment examines, inter alia, whether the project documentation has considered climate change impacts and made any necessary revisions. The details of these contracts vary, but the essence is that they are long-term, fixed contracts. PPPs work best when the contracts are as complete as possible: in other words, when risks are clearly identified and allocated to the different parties.