“Build resilient infrastructure, promote sustainable industrialization and foster innovation”
16 September, 2015. It is next week! At the Sustainable Development Summit on 25 September, 2015, UN Member States will adopt the 2030 Agenda for Sustainable Development, including a set of Sustainable Development Goals (SDGs), otherwise known as the Global Goals. The SDGs are a new, universal set of goals, targets and indicators that UN Member States are expected to use to frame their agendas and political policies over the next 15 years, as very well summarized by the United Nations Industrial Development Organization (UNIDO).
Today we continue our 17-days series of articles and review the most expensive Sustainable Development Goal, SDG9: “Build resilient infrastructure, promote sustainable industrialization and foster innovation”
Trillions of dollars are needed to finance new infrastructure. Already in 2013 and not considering the SDGs, McKinsey estimated that $57 trillion was required to be invested until 2030, more than the estimated value of existing infrastructure!
SDG8 is expensive, but also because it relates to virtually all the other SDGs: health, education, energy, education, water etc all depend on “resilient infrastructure”.
The good news is that there is plenty of capital sitting somewhere and that interest rates paid by banks is still low. It is more about shifting capital to sustainable – aka socially responsible – investment. New financial instruments such as Green Bonds and Social Bonds are already growing to about $100 billion this year. A tiny proportion of the $3-4 trillion needed every year, but with plenty of room to grow: the total bond market – capital do be shifted – is worth of $100 trillion.
The SDG8 targets give an idea of the challenges and opportunities for investment:
- Develop quality, reliable, sustainableand resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all
- Promote inclusive and sustainable industrializationand, by 2030, significantly raise industry’s share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries
- Increase the accessof small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets
- By 2030, upgrade infrastructure and retrofit industriesto make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities
- Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries, including, by 2030, encouraging innovationand substantially increasing the number of research and development workers per 1 million people and public and private research and development spending
- Facilitate sustainable and resilient infrastructure development in developing countriesthrough enhanced financial, technological and technical support to African countries, least developed countries, landlocked developing countries and small island developing States
- Support domestic technology development, research and innovation in developing countries, including by ensuring a conducive policy environment for, inter alia, industrial diversificationand value addition to commodities
- Significantly increase access to information and communications technologyand strive to provide universal and affordable access to the Internet in least developed countries by 2020
What can business – and investors – do to support resilient infrastructure, promote sustainable industrialization and foster innovation?
Similarly to SDG8 (Economic Growth), it is quite obvious that business should be the main actor to implement SDG9. The challenge is to find the capital, especially for long-term investments.
As for investors, The relatively positive outcomes of the Third International Conference on Financing for Development in Addis Ababa, Ethiopia, plus the good answer from investors on a low-carbon economy and the like, encourage us to think that it is more an opportunity than a challenge.
More tomorrow with SDG10: “Reduce inequality within and among countries”.
Marcio Viegas is the founder and managing director at SUST4IN.
Missed our previous articles? Check them here:
- SDG1 (End Poverty),
- SDG2 (End Hunger),
- SDG3 (Health & Well Being),
- SDG4 (Education),
- SDG5 (Gender Equality and Women)
- SDG6 (Water and Sanitation)
- SDG7 (Energy for All)
- SDG8 (Economic Growth)
Celebrate the Sustainable Development Goals with us, as part of the Climate Week NYC. Click on the picture below for more info.
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