Developing National Strategy and the Role of Sovereign Wealth Fund to Support Sustainable Infrastructure Projects

This policy brief was produced by Think20's Task Force on Resilient Infrastructure and Financing for the 2022 G20 Bali Summit.

The scale of the global infrastructure investment gap over the next two decades raises the question of where and how governments can access the additional finances to deliver the required level of sustainable infrastructure. Mobilising private finance is critical for closing the infrastructure gap particularly in lower-middle income countries.

Sovereign Wealth Funds (SWFs) – large state-owned investment funds – can play a critical role in incentivising and unlocking private national as well as international finance to enable low-carbon infrastructure investment that is aligned with the Sustainable Development Goals (SDGs).

The following actions will enhance the role of SWFs and public policy incentives to mobilising
private investment in supporting the national infrastructure strategies. We propose a National
Strategy Coordination Mechanism (NSCM), which would not only provide guidance in terms of
governance coordination among national entities but also enhance long term certainty beyond adhoc projects and one-off investments within and across nations.