INDEPENDENT PUBLICATION BY RACONTEUR.NET #0710 15/12/2020 FUTURE OF INFRASTRUCTURE

BUILDING WHAT A BOLD VISION TAKING ON THE NET- 04 PEOPLE REALLY WANT 12 FOR RENEWABLES 18 ZERO CHALLENGE INDEPENDENT PUBLICATION BY RACONTEUR.NET #0710 15/12/2020 RACONTEUR.NET 03

FUTURE OF CONNECTIVITY INFRASTRUCTURE Connecting to Distributed in exceed expectations

Published in association with Unprecedented transformations in healthcare, education and business are showing just how central digital infrastructure is to the future

Promoting Private Investment in Infrastructure

Marina Gerner because they're so integral to soci- Contributors ety. Education provides our ability to t’s safe to say this year has continue to evolve, to have an equal IF EMAIL’S A PHISHING HOLE, Oliver Balch Marina Gerner I irreversibly changed our opportunity platform for children Journalist specialising Award-winning arts, professional and personal from all across the country and eco- in sustainability, philosophy and finance lives. The infrastructure sector, nomic levels. And then also health- TAKE YOUR FISH ELSEWHERE. business and travel, and writer, contributing to although often playing a behind-the- care, I am a fan of nationalised health- author of travelogues on The Economist's 1843, care and I do think the NHS has lots of South America, India The Times Literary scenes role, is now central in deliver- Get enhanced security with SEDNA and Wales. Supplement and ing the post-pandemic “new normal”. opportunity for effi ciencies.” Standpoint. At the beginning of the health cri- Hamish de Run, head of Federated sis, the UK’s telecoms infrastructure Hermes Infrastructure, says benefi ts team communication software. Sam Haddad Mark Hillsdon took the spotlight for an unexpected of greater connectivity range from a Journalist specialising Contributor to titles such Images Schregardus/Getty Alex - Photography AHS in travel, with work as The Guardian and reason. A bizarre conspiracy theory reduction in cost base to effi ciency published in The B B C C o u n t r y fi l e , writing blamed 5G technology for corona- improvements. He too notes societal Guardian, 1843 Magazine on topics including virus, which led to a series of arson benefi ts include “the delivery of high- and The Times. sustainability, wildlife, attacks on mobile-phone masts. er-quality remote healthcare and health and sport. In reality, these very masts help to education, as well as contributions to Magda Ibrahim Rose Stokes enable our digital connectivity. Our wellbeing through reducing isolation Award-winning journalist, Freelance journalist connections to the internet rely on a and loneliness via increased digital with bylines in the Sunday specialising in women’s hardware foundation, via fi bre-optic connectivity to others”. Times, London Evening rights, health and human Pip White, managing director, Standard, Sun online and interest features. Her cables, masts and datacentres, mak- specialist media including work has appeared in The ing infrastructure the cornerstone UK and Ireland, at Google Cloud, Campaign, Third Sector Guardian, The Economist, of global connectivity. says: “Greater connectivity will and PRWeek. The Telegraph and Vice. In a survey conducted by improve the effi ciency and speed Community Fibre, some 60 per cent of cloud computing, reduce latency Finbarr Toesland Jonathan Weinberg of London-based small and medi- and downtime, and give busi- Freelance journalist, he Journalist, writer and um-sized enterprises said high nesses greater capacity for growth. specialises in technology, media consultant/trainer broadband speed and quality are Complex tasks will be performed business and economic specialising in technology, even more critical for their business quicker with fewer interruptions, issues, and contributes business, social impact operations than a functioning sup- allowing employees more time to to a wide range of and the future of work publications. and society. ply chain (52 per cent). Earlier this focus on innovation and high-im- year, government fi gures showed pact projects.” the country’s digital sector contrib- Which major infrastructure pro- uted £149 billion to the UK in 2018, jects are helping us towards a more which amounts to 7.7 per cent of the digitally connected world? “What a EMAIL IS THE NUMBER ONE PORTAL economy and it’s set to grow. lot of people don’t realise, though, At the same time, there have been connectivity? “The point of this can we do a video consultation?’ a is that today, 98 per cent of inter- FOR CYBERSECURITY ATTACKS, Publishing manager Design geopolitical concerns about the pro- infrastructure is that you don't have year ago, they would have laughed national internet traffi c is ferried LEAVING BUSINESSES CONSTANTLY John Harvey Sara Gelfgren viders of our digital infrastructure. to worry about it,” says Dana Tobak, at me,” says Tobak. Whereas now it around the world by subsea cables,” Kellie Jerrard The United States has led a cam- co-founder and chief executive of has become standard practice that says White. “A vast underwater net- VULNERABLE TO PHISHING SCAMS Associate editor Colm McDermott paign against Huawei, a Chinese Hyperoptic. “In the same way you benefi ts both patients and doctors. work of cables crisscrossing the Peter Archer Samuele Motta provider of telecoms equipment, barely think when you turn on the In addition, access to digital devices ocean makes it possible to share, Nita Saroglou AND SECURITY BREACHES. given China’s human rights viola- tap, is water going to come out? And is important for education. “One of search, send and receive informa- Acting managing editor Jack Woolrich As communication software for high-volume, global, Francesca Cassidy Sean Wyatt-Livesley tions and the control the state holds am I going to have enough to brush the things that COVID has shown is tion across the world at speed.” over Chinese companies. Other my teeth? You don't think about it; it we don't have equality yet across dif- And still more of these are planned and enterprise teams, SEDNA prioritises security Digital content executive Art director countries have voiced similar con- just works.” ferent economic groups,” she says, or in development, including Google’s with thorough onboarding, multi-factor authentication, Taryn Brickner Joanna Bird cerns and followed suit. COVID-19 has radically acceler- adding: “What can we achieve when recently announced Grace Hopper Production manager Design director The UK government announced ated digital transformation in edu- we have ubiquitous connectivity? cable, which will run between the single sign-on, approved address books, secure cloud Hannah Smallman Tim Whitlock a new strategy to diversify the UK’s cation and healthcare. “If I had “Health and education are the two United States, UK and Spain. hosting, and Verified by SEDNA*, which vets and 5G supply chain backed by an initial called a GP surgery and said, ‘Hey, use-cases I get the most excited about “The rollout of fi bre to the home, authenticates messages within the SEDNA network. £250 million in November. “We are or FTTH, is likely to accelerate, pro- taking bold steps to implement one viding more people with faster and of the toughest telecoms security EUROPE’S BIGGEST CONNECTIVITY CHALLENGES more reliable broadband,” says de Plus, SEDNA’s shared inbox solution creates more Although this publication is funded through advertising and regimes in the world,” says Oliver Run. “The upgrade of cellular net- transparency across organisations—meaning less sponsorship, all editorial is without bias and sponsored features Dowden, digital, culture, media and works will deliver improvements in are clearly labelled. For an upcoming schedule, partnership sport secretary “A central part of access to wireless internet and the opportunity for suspicious activity to go unflagged. inquiries or feedback, please call +44 (0)20 3877 3800 or that is combating high-risk vendors of European tech fi rms, investors and stability and coverage of mobile policymakers say that required business email [email protected] and I have set out an unambiguous communications. Increasing capac- infrastructure investment is the biggest Raconteur is a leading publisher of special-interest content and timetable for the complete removal ity of datacentres will allow for PROTECT YOUR BUSINESS COMMUNICATIONS research. Its publications and articles cover a wide range of topics, % challenge with 5G connectivity of Huawei equipment from our 5G greater use of cloud computing, including business, fi nance, sustainability, healthcare, lifestyle and 60 WITH SEDNA. LEARN MORE AT SEDNA.COM technology. Raconteur special reports are published exclusively in networks no later than 2027.” improving effi ciency and security in The Times and The Sunday Times as well as online at raconteur.net Overall, the government wants a sustainable and environmentally The information contained in this publication has been obtained the majority of the UK population friendly way.” say the biggest from sources the Proprietors believe to be correct. However, to be covered by a 5G signal by 2027. There may yet be a sign of hope to challenge is the say it is the no legal liability can be accepted for any errors. No part of this It also aims to provide next-genera- increased cost underlying end the year. As Hyperoptic’s Tobak publication may be reproduced without the prior consent of the tion fi bre broadband to 85 per cent of of connectivity technology concludes: “We have started to see Publisher. © Raconteur Media % % 53 26 that actually, with the right con- premises by 2025. *Subject to our standard terms What benefi ts can businesses nectivity, you can do so much more @raconteur /raconteur.net @raconteur_london and end-users expect from greater DLA Piper 2020 than people expected.”

raconteur.net /future-infrastructure-2020-dec 04 FUTURE OF INFRASTRUCTURE RACONTEUR.NET 05 Commercial feature

PEOPLE FIRST

Building Images Andrews/Getty Andy what people really want Truly sustainable infrastructure must be about more than wind turbines and solar panels, it must be designed with the people who live in it firmly in mind

ture remains in its early days. For the positive early signs do exist, says Oliver Balch sector’s big players to start thinking Amy Clarke, chief impact officer at seriously about the “why” and “who” the socially responsible investment Decoding of large-scale projects, it will take a fund Tribe Impact Capital. ary Clark is on a mission. Given its dependency on such pro- It’s not only achieving value for strong signal from policymakers. “Investors who are familiar with the G With the UK facing an even jects, the infrastructure sector has money, but also aiming at value A few promising signs exist. HOK’s intersectional overlap between the greater economic recovery proved attentive. Proof came this Clark points to the UK government’s UN Sustainable Development Goals productivity than after the Second World War, summer with the publication of a for people and value for the planet latest National Infrastructure Strategy. are usually keen to see people-cen- this expert government adviser white paper on the future of infra- Unveiled last month, the £100-billion tred design factors as part of an believes infrastructure should take structure by a working group of the plan prioritises a raft of sustainability approach to infrastructure,” she says. How digital will transform infrastructure centre stage in the campaign to World Economic Forum (WEF). actions, from investing in renewable By way of example, she points to “build back better”. The report interprets the idea of energy and flood defences through investor concerns about the impacts to deliver better outcomes for all Picture the scene. Residential and people-first in infrastructure pro- the-minute health technologies avail- to installing electric vehicle charging on employment of a transition to commercial buildings, retrofitted jects through six key principles; able to the wider Turkish public. They points and cycle lanes. low-carbon infrastructure. Accord- to be super energy efficient. Cities environmental resilience, bene- are also fitted with a host of green Announcing the new strategy, ing to the London School of Econom- crisscrossed by pedestrian-friendly fit-sharing, social acceptability, eco- features, including rooftop solar and chancellor Rishi Sunak made ics, 30 per cent of the 2.4 million UK thoroughfares. Roads free of pollut- nomic and institutional effective- seismic isolation technology. explicit the link to the everyday lives workers employed in construction he ways in which we live and to complete than planned and were 80 In another example, its digital con- “But we also need to remember ing traffic. Urban spaces dotted with ness, future-proofing and potential Another illustrative example new infrastructure touches, arguing are in danger of losing their jobs if T work, travel and socialise, per cent over budget. “This is often, tent library recently provided 50 per that 75 per cent of buildings already new parks and public gardens. for reaching critical mass. is a public-private partnership that the barometer of economic suc- they fail to reskill. connect and communicate unfairly, the way infrastructure is por- cent of the project components for a built will still be in use in 2050. That “We must grasp this opportunity WEF project leader Joseph Losavio in India that will see 250 million cess for many is “the change they To avoid this and other similar social are evolving rapidly, driven by expo- trayed to the public,” says Hoare. “They major highways scheme, straight off means we have to fi nd ways of ensur- of great change and renewal to cre- sums up the essence of the list as smart electricity meters installed see and the pride they feel in the fallouts, 161 investment firms repre- nential growth in technology. At the read stories about mega projects the virtual shelf. Additionally, by auto- 50% ing they also contribute.” ate a truly sustainable future. The developing infrastructure in a way across the country over the coming places they call home”. senting $10.2 trillion in assets under same time, an explosion in popula- being delayed and budgets increas- mating elements of design, services of the project components for To help tackle this, Atkins has teamed next ten years are critical,” says that “puts the focus on outcomes in years. Among the project’s defin- The principles of people-first are management have publicly pledged to tion growth and the spectre of climate ing. The reality is these are complex can be delivered more effi ciently and a major highways scheme were up with Cardiff University to develop projects, with multiple stakeholders a digital twin programme that will also Clark, a science and technology spe- people’s lives”. This socially-oriented ing attributes is its inclusion of also evident in the infrastructure ele- use their financial muscle to support a change is creating unprecedented solutions discovered much faster. provided, straight off the shelf, cialist at global design and architec- approach contrasts with the indus- end-users in the rollout plan and ments of the European Commission’s so-called “just transition”. challenges for society and the lived and intricate supply chains. We believe Modifi cations in bridge designs can be seek to drive digital transformation by Atkins digital content library ture firm HOK. try’s habitual prioritisation with the future pricing structures. €1.8-billion COVID-19 recovery deal. Arguably, however, the biggest environment. At the heart of this is the this is where a connected ecosystem made using elements of past designs, across the UK’s existing built environ- Coronavirus has sparked many physical aspects of infrastructure. At its core, people-first infrastruc- Nearly one third (30%) of this colos- challenge ahead lies in changing the infrastructure sector. for infrastructure delivery will be a piecing them together to optimise use ment. Part of the focus will be on cre- utopian visions for a post-pandemic Another way of looking at it is to ture is as much about shifting per- sal stimulus package is destined to prevailing mindset of infrastruc- “Infrastructure helps to create the game-changer.” of materials. This ‘design once, use ating digital twins of existing buildings, reboot. So, is Clark’s vision just pie-in- think less about the “what" and spective and “widening one’s hori- combat climate change, with specific ture firms. For one, it involves pri- lived environment,” according to Philip Atkins’ vision is to completely inte- often’ approach embraces the best infrastructure and cities to help opti- the-sky optimism or could our towns “how" of infrastructure, Lasavio sug- zon” as it is about specific practices attention also given to biodiversity oritising the “priorities of life” over Hoare, president of Atkins, a global grate infrastructure delivery across elements of digital and ensures faster mise how they operate. and cities really be on the verge of a gests, and more about the “why’ – cli- and protocols, says Jean-Patrick protection and gender equality. the “priorities of money”, says Rich- design, engineering and project man- the whole life of a project, harnessing delivery without comprising quality. Hoare believes we are on the cusp major sustainability makeover? mate security, nature conservation, Marquet, former managing director The central role of infrastructure, ard Threlfall, global head of infra- agement consultancy, and part of the effi ciencies and insights from all stake- The second stage is in the actual % of a new revolution. And the benefi ts Discussions at the very highest human wellbeing, and so forth – and for infrastructure at the European especially green infrastructure, in structure at KPMG and a member of SNC-Lavalin Group. “It shapes our lives holders in the ecosystem to drive value construction. Hoare cites one client 75 seem to be obvious. With global infra- levels of policymaking suggest such the “who”– people, and even planet. Bank for Reconstruction and Devel- many government recovery pack- WEF’s working group. in profound ways, helping to defi ne our for clients and better outcomes for who told him: “We collect a lot of data, of buildings already built will structure spending expected to be ideas may not be as far-fetched as To prove the idea’s viability, WEF opment, and an adviser to WEF. ages goes some way to addressing Harder still could be the industry’s quality of life, our health and wellbeing, society. It is doing this by investing in make a lot of decisions. But how can we still be in use in 2050 more than £70 trillion between now they may seem. Several years ago, provides various existing case stud- “It’s not only achieving value for the other big challenge facing this perceived latent elitism. As opposed to and a sense of trust and belonging in three key areas, each a different stage use this data to make better decisions and 2040, a mere 1 per cent increase the Economic Commission for ies. One concerns a $1.51-billion pro- money, but also aiming at value for burgeoning agenda, namely finance. infrastructure firms presuming what our communities.” of the asset life cycle. around programme delivery?” Getting in productivity would reap enormous Europe, a little-known agency of ject to build four city hospitals in Tur- people and value for the planet,” To achieve genuine scale, the pri- people need, a people-first approach But there is a challenge, he contin- The starting point is the design stage. the fi rst stage right is key, but it is then rewards for the industry. the United Nations, put forward the key. The facilities, all of which were he says. vate sector also needs to reach into would involve talking to communities ues: “There is no doubt that our sector Data must be built in from the begin- crucial to ensure data continues to be And what of those broader soci- notion of a “people-first” approach delivered on budget and ahead of Encouraging as these early signs are, its pockets. The evidence here is first. That way, says Threlfall, they can does critically important work, every ning, creating a rich virtual environ- used through tools, apps and dash- etal outcomes? Hoare is very clear on to public-private projects. time, are credited with making up-to- the concept of people-first infrastruc- less encouraging, although some find out “what people really want”. day; brilliant, dedicated people work- ment to enable collaboration. The boards to improve project pathways, this. “What we do helps to shape the ing on things that really make a differ- company currently uses digital plat- increase predictability and ensure the planning stage, through construc- lived environment for the future,” he ence in people’s lives. But we are also forms which allow designers and cli- modifi cations do not create delays. tion and then throughout its life cycle. says. “We have a unique opportunity one of the least digitalised industries ents to simultaneously access the same Finally, the use of digital twins will Earlier this year, Atkins launched a dig- to ensure it works well for the com- NEW GREEN JOBS IN PEOPLE-FIRST INFRASTRUCTURE PROJECTS in the world and as a result we have data environment in real time. This become the norm for the company. ital twin survey platform, enabling cli- munities it serves, allowing people to lagged behind other sectors in produc- increases the pace of project delivery, The future of the asset will become the ents to access, analyse and develop live healthier, more prosperous and UK emissions targets, employment and skills alignment Percentage of jobs affected by greening of the sector Percentage of jobs that will require new skills in the transition tivity. I see this as a huge opportunity; improves productivity and facilitates heart of the design process, embed- ultra-high resolution 2D and 3D models happier lives for generations to come. Emissions targets Employment levels there is clearly room for improvement unprecedented collaboration across ding digital twins into projects from of their assets. By harnessing the power of data and and that’s exciting.” disciplines. It also means all stakehold- “Much has been written about dig- technology, we believe we can help our And it is hard to argue with this when ers are working on the same thing. ital twins,” says Hoare. “In infrastruc- clients to design, deliver and maintain 1.6m employed in transport and storage; 46% Surface transport 98% reduction in emissions by 2050 4m in retail and repair of vehicles you look at the facts. According to Atkins claims that most clients ture, they are critical. Imagine a future infrastructure that helps create a world 26% McKinsey & Company, the construc- accept the need to move away from where digital twins not only help to that works better for all.” 50% tion sector is one of the least digitalised manual processes in the design construct an airport, a hospital or a Industry 90% reduction in emissions by 2050 3m employed in manufacturing industries globally. But leaders like Hoare phase. “A number of our clients have train line, but are used to more effi - 17% see that as an opportunity. “The good embraced digital design and we’ve ciently operate them afterwards?” news is that our industry is already full embarked on a journey together with He believes digital twins will be All new heating systems to be 2.4m jobs in construction; 60% of data; it’s just invariably disconnected data at the very heart of what we do,” A number of our clients have an important digital tool in helping For more information please visit Buildings low-carbon from 2035 0.5m in real estate 30% and fragmented,” he says. “Valuable says Hoare. “For example, shared embraced digital design and nations to minimise the impact of atkinsglobal.com insights, which could be used for making digital common data environments the lived environment from a sus- 90,000 employed in electricity production, 43% better decisions, are often lost. And with have allowed us to carry out ‘digital we’ve embarked on a journey tainability perspective. “To meet the Power 99-100% low-carbon generation by 2050 transmission and distribution; that goes productivity and growth.” rehearsals’ of projects prior to con- Net Zero targets, we have to change 544,000 employed in UK energy industry 26% together with data at the very In 2016 McKinsey estimated that struction, a kind of virtual road test the way we build, power and move London School of Economics 2019 major projects took 20 per cent longer which saves time and money.” heart of what we do the world in the future,” says Hoare. 06 FUTURE OF INFRASTRUCTURE RACONTEUR.NET 07 Commercial feature

BREXIT Thetius, an organisation enabling given its strength in exporting innovation across the maritime knowledge from the insurance, industry, says: “The UK ports sec- finance and legal sectors. tor is behind many European ones Dr Vaggelis Giannikas, associate when it comes to advanced tech- Similar to fintech five or ten professor at the University of Bath, Smart ports nology adoption. That said, in the years ago, the global trade is researching the use of digital tech- Building back North East, the Port of Tyne has nologies in supply chain manage- established an innovation hub that space is ripe for innovation ment with a focus on intelligent logis- is in the early stages of building an tics systems at the Centre for Smart key to trade ecosystem and testbed for new tech- Warehousing and Logistics Systems. better, faster nology, which is very promising. He says for a post-Brexit Britain to “In the last 12 months, $85 mil- harness new enhanced digital trade lion has been invested in UK start- infrastructure, moving away from a success ups building technology to support Some are already achieving this. reliance on outsourcing jobs over- and greener maritime trade, as data from our For example, SEDNA Systems has seas would be key. technology intelligence platform just closed a $10-million Series A Giannikas explains: “The UK can shows. Similar to fintech five or ten funding round. The software com- develop something for their own The private sector is ready to help build Ports are a major focus for UK years ago, the global trade space is pany says it has reduced email vol- use and then use their experience to infrastructure innovation, but whether ripe for innovation.” ume for one global trading company sell either the infrastructure itself or and finance a cleaner, more connected Future-proofing digital trade by up to 95 per cent. Another, Marine their experience to other countries. this will be enough to boost British infrastructure will also come down Transport International, is a UK com- In Greece, for example, they are try- country, says Leigh Harrison, head of to adapting many manual legacy pany using secure blockchain-based ing hard to digitalise the public sec- Macquarie Infrastructure and Real Assets, trade post-Brexit remains to be seen processes through robotics and AI. automation to transfer data between tor and have learnt a lot from the A major way this can be achieved supply chain stakeholders. Estonian model. Europe, Middle East and Africa in a post-Brexit Britain is in the anal- Such security is certainly another “It isn't that you can only export ysis and transfer of documentation aspect that will be crucial to dig- the actual digital infrastructure – and data. As Chubb says, much still ital trade infrastructure. Russell hardware and software – you can Jonathan Weinberg exists within traditional manual Haworth, chief executive at export the know-how, the services email chains that take a long time to Nominet, the company that han- based on the people who developed be processed. dles all .uk domains, believes that the infrastructure itself. n January 1, the Brexit To achieve such trade infrastruc- “At the government level, AI will be to become a strong trading power- “The benefit then comes both in iven the extraordinary global To meet the government’s ambi- O transition period comes ture success, the UK could look to key to enabling trade to flow freely house post-Brexit, Britain’s digi- terms of better utilisation of resources G health crisis we are living tion to quadruple the UK’s offshore to an end and the UK will Italy for inspiration, where the port and securely across UK borders. tal trading infrastructure must be within the UK, by using the infra- through, it would be easy wind power capacity by 2030, we have finally severed links with the of Livorno has been dubbed “The 5G The UK's supply chains with Europe secure by design. structure, and in terms of exporting for the decarbonisation and digitali- estimate it will require £50 bil- European Union to trade inde- Port of the Future” by networking and don't have enough resilience to sup- He says: “If the UK has a reputa- knowledge expertise to others, by sell- sation of public infrastructure to slip lion in investment to achieve this pendently. So could technology and telecommunications giant Ericsson. port the physical delays caused by tion of being secure and safe for ing your services and the developed down the political agenda. However, goal alone. It’s bold, but the invest- digital transformation be the key to A mix of the internet of things, inspecting goods moving across the businesses to store data, there is technologies to other countries. here in the UK, it’s been really ment and regulatory frameworks empowering a new trade infrastruc- artificial intelligence (AI) and aug- border. There simply aren't enough a greater chance it will cement its “Adopting digital technologies in encouraging to see these challenges have been established. The stage ture in a post-Brexit Britain? mented reality has been installed resources at the UK's borders to position at the heart of this sector of the upstream parts of the supply being prioritised by the government. is fully set for this huge investment As an island nation, mari- there to enable the mass collection inspect all goods,” he warns. the future and compete on the global chain has the potential to create big In November, prime minister Boris to happen. time trade and shipping could of real-time data and analytics, with “As a rule, AI is very good at spot- stage, playing to our strengths as a economic and environmental bene- Johnson announced a ten-point plan We see a significant opportunity to be a significant sector to exploit. humans working alongside robotic ting patterns in massive datasets, so high-skilled, high-tech economy.” fits at the system level.” to make the UK a nation rich in green repeat this success in other technol- According to the government, £500 systems and automated vehicles it is an incredibly useful technology Developing our services economy Many also believe the key to the infrastructure investment opportu- ogies and sectors. There are a host billion of trade passes through UK to more effectively track, load and for helping customs agents to spot too could play a key role in the infra- future of digital trade infrastructure nities and jobs. This was swiftly fol- of exciting new investment oppor- ports each year, but many experts offload cargo. and intercept suspicious traders, structure of the future. A post-Brexit in a post-Brexit Britain will be how lowed by the publication of a broader tunities that could prove transform- agree it is an area lagging behind Nick Chubb, former navigator on while allowing the majority of goods Port of Britain could become a centre for much we invest in people and not National Infrastructure Strategy that ative for the nation’s economic and parts of the globe. commercial ships and founder of to cross the border unhindered.” Livorno, Italy global trade facilitation technology tech investment alone. has called for a radical improvement in environmental future, and deliver Gerry Buggy, chief strategy officer the quality of the UK’s infrastructure. real regional development benefits in for Anglo-Irish software company The government had already cre- almost every corner of the UK. Kx, says: “A focus on, and invest- ated a legal commitment for the UK At Macquarie Infrastructure and ment in, data literacy and skills to reach net-zero greenhouse gas Real Assets (MIRA), we see high should go hand in hand with invest- emissions by 2050. But by delivering potential in low-carbon hydrogen both hydrogen and CCS will need across government, the private ments in digital technologies. a strategy and a set of goals to help fuelling UK homes and businesses. clear, long-term government sup- sector and the communities who will “There's no point building the infra- take us there, ministers have made Heating for homes and businesses port to draw in consistent private be the ultimate beneficiaries of these structure to support and nurture a powerful statement of intent and accounts for half of the UK’s energy investment. The good news is we have investments. “Build, build, build” is technological innovation if you hav- direction. As an unprecedented and consumption and one third of its the investment frameworks already % the right message. It now needs to be en't got the necessary skills to unlock unpredictable year draws to a close, carbon emissions. While we don’t in place. 60 backed up by a team effort to “plan, uplift in daytime new business ideas in real time for I am greatly encouraged by this sense believe hydrogen is the only low-car- Alongside decarbonisation, the UK collaborate and get it done”. continuous improvement. The UK of momentum and the important role bon heating solution, it is a key piece government also has digital ambitions broadband traffic during The stakes are high. Done well, can't afford to get left behind.” for the private sector and private of the net-zero puzzle. One of our to achieve a gigabyte-capable econ- the first lockdown infrastructure investment stimulates

finance in delivering it. own businesses, national gas dis- omy by 2025. For those who have Ofcom 2020 job creation and helps deliver better Infrastructure investment will help tributor Cadent, is currently demon- migrated to working or studying from work, health and financial outcomes SMART PORTS HAVE to accelerate the nation’s recovery strating the feasibility of blending up home this year, the case for full-fi- for the entire country. It provides real to 20 per cent hydrogen into the UK’s bre, high-speed coverage across assets, not just in the financial sense SMART OUTCOMES from the pandemic. But with gov- ernment spending already stretched, natural gas network. every part of the UK has never been of the term, but in solid, tangible the prime minister has made it clear Carbon capture and storage (CCS) stronger; Ofcom reported an increase £ bn improvements to our everyday lives, 50 whether that be through ultra-fast technology is another complemen- in daytime broadband traffic of up to that the £12-billion state financing investment required to pencilled in for the green industrial tary method to cut the nation’s 60 per cent during the first lockdown. internet access or through cleaner air quadruple the UK’s offshore 8% revolution must be tripled by private carbon output. Right now, Cadent Each month, we are reaching new and power. sector investment, to the tune of £42 is planning a new hydrogen pipe- internet traffic peaks. The average wind power capacity by 2030 The scale of private capital required billion. We should be confident we line and the creation of the UK’s first UK adult, according to Ofcom, now Macquarie 2020 to deliver this new era of decarbon- reduction in emissions per terminal operation, using smart technology can achieve this and more. The UK CCS infrastructure in north-west spends a daily average of at least four ised, digitalised infrastructure will in the Port of Livorno has already proven itself more than England. As emerging technologies, hours online. be huge. However, I am positive that capable of catalysing private finance Regional digitalisation projects are further private investment can and to build green public infrastructure. already underway, delivering sig- MIRA’s ownership, KCOM announced will come. The government is push- Take offshore wind. Long-term, nificant returns for investors and a £100-million investment to further ing on an open door: the public wants €2.5M effective public-private planning for the communities they serve. expand its network to underserved a cleaner, more connected country reduction in cost from optimising and financing, including Macquarie’s Hull, for example, is home to the communities in England’s north. and the private sector wants to be vessel berthing own Green Investment Group, which UK’s fastest internet network, with These are just a handful of oppor- part of the solution. started life as a government initiative, average speeds of 94.7Mbps. This tunities for the private and public has helped the UK become the largest is the result of internet provider sectors to create flexible, well-con- offshore wind market in the world. It The UK has already proven KCOM’s seven-year investment pro- nected and low-carbon infrastruc- 20-25% is because of strong policy frame- itself more than capable of gramme, which saw the city become ture across the UK. So how do we You can learn more about MIRA’s works that we have seen the cost of the first in the country to have fibre realise them? work at mirafunds.com offshore wind fall by two-thirds in the catalysing private finance laid down in every street. Crucially, The priority for all of us is to build increase in productivity by past five years. It’s a tremendous suc- the investment led to £469 million on the momentum and direction set using automated quay cranes to build green public of incremental economic activity by the government in the past month. depaz/Shutterstock depaz/Shutterstock cess story for the UK and bodes well Ericsson 2020 for the goals ahead of us. infrastructure in the area. Earlier this year, under This will take strong partnerships 08 FUTURE OF INFRASTRUCTURE RACONTEUR.NET 09 Commercial feature

OPINION

ELECTRIC VEHICLES ‘Infrastructure Martin Pickard/Getty Images Pickard/Getty Martin Road to investment will lay making the the foundation for a sustainable recovery electric dream from the pandemic’ a reality fter such a diffi cult year country’s future economic growth, A for many, including those while 69 per cent of responses Demand may fi nally be on the rise, but the involved in infrastruc- favoured the prioritisation of infra- Investing in Europe’s ture, it is pleasing to be able to end structure in the government’s plan- uptake of electric cars has been sluggish. 2020 with a sense of optimism. We ning for the post-coronavirus recov- A new rollout of charging infrastructure will enter 2021 with the prospect ery. Two thirds of the population do of a Biden administration com- not believe we are currently doing future charging could accelerate sales mitted to “Build Back Better” and enough to meet our infrastructure unlocking the political impasse on needs as a country and support for US infrastructure; the European private investment is strong with Commission has set out its plans to those in favour of private invest- infrastructure, now Mark Hillsdon deliver its Green New Deal and the ment if it means the country gets UK has published its long awaited what it needs, outnumbering those National Infrastructure Strategy as against by seven to one. To the general public, the concept of widespread electric vehicle n the 2000s, when electric by 2030, in a bid to accelerate the a vital step towards delivering on its To ensure investors have the con- I vehicles (EVs) fi rst began transition to the EVs. net-zero targets. fi dence to deploy private capital in adoption seemed a pipe dream three years ago. Today, it is no to be taken seriously as an Alongside this, the government is Here in the UK, private capital has UK infrastructure, it is critical the alternative to the internal combus- investing £1.3 billion in a charging helped to develop new energy infra- government sets out a clear, sec- longer a case of when and where EVs will gain traction, but how? tion engine, range anxiety was rife. infrastructure that is fi t for purpose, structure for decades, illustrated by tor-by-sector roadmap and strate- Fear of being stranded with a fl at in a bid to convince UK drivers that the largest installed capacity of off - gic regulatory guidance from which battery was stopping people from EVs are not just a green option, but a director Dr Michael Hajesch, from Siemens research had shown that shore wind in the world, with nearly investment can be steered cohesively ow will electric mobility Hajesch says: “This benchmark in While the company keeps building making the switch. EVs were seen convenient and cost eff ective one too. regulatory frameworks, to market while 36 per cent of UK motorists £19 billion invested in UK off shore towards achieving long-term policy H operate in the future? How terms of charging capacity can’t even more stations across Europe, IONITY as a novelty, good for a trip to the One reason the rollout of a public maturity and grid capacity. But gov- planned to buy a hybrid or EV as wind energy between 2016 and 2021. objectives, while at the same time will charging infrastructure be met by any presently available has started to develop a strategic shops, but only the foolhardy would charging infrastructure has been so ernment support is vital. “To have their next car, 40 per cent also said With a legally binding commitment to striking the right balance between support the ever-increasing demand vehicle in the market. But consider- growth path on how to improve and venture outside city limits in one. slow is that the majority of charg- The EV dream is all about making clear vision and targets is defi nitely a lack of charging points stopped reach net-zero emissions by 2050, the consumer interests today and in for electric vehicles (EVs)? And how do ing the industry’s speed of trajectory, perfect their ‘energy stations’ of the Gradually, the technology improved ing is done at home, says Alexander electric a superior experience to something that helps,” he says. them from doing so sooner. UK appears strongly placed to attract the future. GIIA’s recent report The we make sure energy from renewable there is a need to be ready for future future. Hajesch explains: “The beauty and a network of charging points Lewis-Jones, senior analyst at man- Companies such as IONITY can “It's such a no-brainer,” says Magee the investment required to decarbon- Future of Regulation sets out some sources is available at any time to meet market growth and advancements in of emobility is it can be seamlessly inte- began to appear, fi rst at service sta- agement consultants Delta-EE. that of the combustion engine also help governments achieve at Siemens. “We can convert a lamp- ise not just its energy sources, but all recommendations which we hope the enormous demand? battery technology.” grated into everyday life and that’s one tions and more recently on urban “So, while public infrastructure wider goals. By working with local post in an hour into an EV charging sectors of the economy, including will be helpful in shaping that future In the next five years alone, 400 bat- Unlike traditional vehicles, EVs can of our main focuses.” street corners. But the UK response rollout may appear sluggish, a pri- suppliers, for example, they can point. It's low cost, low disruption and buildings and transport. regulatory framework and building tery-powered EV models will hit the be charged anywhere, at home, work- “The other is all about quality. This remained slow. Now, however, the vate infrastructure rollout has been ensure charging stations use 100 per you’re helping those people who don't Infrastructure investment will also on what has been a tremendous suc- market. As such, the industry is wit- places and throughout cities. From the means excellence in operations and stakes have changed. growing rapidly across the nation’s cent renewable electricity, helping have access to off -street parking. It's lay the foundation for a sustainable cess for the UK over the last 40 years. nessing a growing conversation around start, IONITY has focused on what the perfecting the user experience: relia- According to Bloomberg, invest- driveways,” he says. For every pub- to decarbonise transport, but also more of this type of thinking that we recovery from the pandemic, deliv- The much-anticipated release charging infrastructure, its scope, company believes is the missing piece bility, ease of use and a variety of pay- ment in charging infrastructure in lic chargepoint a further fi ve private in the UK is patchy at best. “A lot of EV achieve broader emissions targets, need: things you can scale quickly.” ering on the “levelling-up” agenda. of the National Infrastructure extent and attractiveness. of the puzzle for widespread EV adop- ment options.” the United States and Europe alone ones have been installed, and by operators got in early and set up their says Hajesch. With the right to plug comes the This is because infrastructure Strategy, including the creation of a Traditionally, pure availability of tion: charging along motorways. IONITY’s ambitions and commitment to will top $60 billion by 2030, before 2030 there could be more than three own systems,” says Bernard Magee, Coronavirus is having an infl u- right to roam. “All Dutch public investment delivers multiples of the new National Infrastructure Bank, charging infrastructure and range As a result, just three years after IONITY establishing a reliable EV charging infra- rocketing to $192 billion by 2040. million residential chargepoints, director of emobility infrastructure ence, says André ten Bloemendal, chargepoints must be accessible with original investment in terms of its is a welcome step forward. There are anxiety were causes of concern for was founded, the challenge of long-dis- structure will pave the way for this transi- The UK is set to phase out the sale of Lewis-Jones predicts. solutions at Siemens. “That's why we vice president for sales in Europe any public charging card, allowing for wider economic returns, with pro- exciting times ahead for those with consumers still unsure about making tance travel has mostly been overcome. tion from availability to habitual comfort new petrol and diesel cars and vans The public network that does exist have this patchwork of networks. at California-based ChargePoint, unlimited roaming,” says Delta-EE’s jects distributed across the country. an interest in fi nancing and man- the transition. But within the past two of a network that customers will become “But while the private sector another company concentrating Lewis-Jones. “This sounds sensible, However, PwC’s new report aging sustainable infrastructure for years, demonstrating the speed and Customer-centred design familiar with in the years to come. kicked things off , there is a lot more on installing fast EV chargers out- but is not the standard across many Unlocking Capital For Net Zero the benefi t of future generations and size of the market, the landscape has for everyday charging Hajesch continues: “The future of pas- government money now coming in side cities. “A lot of government pro- EV markets, especially the UK’s.” Infrastructure, commissioned by there’s no time to lose. changed. Range anxiety has faded, “Location is key to establishing EVs as senger road transport is 100 per cent CHARGING STATIONS SLOWLY ON THE RISE to try and scale. We're at that infl ec- grammes to support the economy in This lack of roaming, says ten the Global Infrastructure Investor while questions of convenience, relia- a viable alternative, incorporating fac- electric. Now, the quality and quantity of tion point and the government is the COVID era push for sustainable Bloemendal, is holding the UK back. Association (GIIA), identifi es £400 bility, location and the all-round charg- tors such as site layout or digital ser- charging infrastructure is key to convince For electric vehicles to realise their full potential, there must be not only more helping to push things along to the solutions, so grants and funding are What is needed is an open network, billion of investment will be needed ing experience have taken precedence. vices for payment.” customers this future is not only achiev- charging infrastructure, but a consistent type of charging station available. available,” he says. where you don’t need to pay a sub- “These aspects need to be taken into able, but has already begun.” (Number of charging stations) next stage.” over the next ten years to achieve Sanjay Neogi, UK and Europe head “The EV dream is all about mak- scription just to access a charging net-zero commitments, twice the Future-proofing a rapidly account to fulfil a very real ideal that As IONITY continues to build and 2200 at technology consultants the Enzen ing electric a superior experience to station, he insists. current rate of investment. That is expanding HPC network the charging experience improves our expand Europe’s leading HPC charg- Normal charge (<=22kW) 20,461 CCS Group, says: “For a viable EV charging that of the combustion engine,” says Vehicle technology is changing too, why the UK government and regu- Since IONITY’s first charging sta- consumers’ journeys.” ing network, the constant increase in 2000 8,174 investment you need a lot of things to Lewis-Jones and, when it comes to with new models that can charge at lators need to think hard about how tion opened in 2018, its high-power EV adoption means its work is only just ChaDeMo 1800 1,503 fi t together: the right level of capital convenience, inspiration should very high power levels. Chinese EV to create the right investment envi- charging (HPC) network has grown to starting. With new EV sales forecast to expenditure, favourable regulations be taken from the Netherlands. manufacturer NIO, which is sched- ronment to attract the international account for more than 300 stations, reach 44 million vehicles a year by 2030, 1600 and the potential to scale. Early Dutch adopters were off ered uled to launch in Europe in 2021, capital necessary to deliver such an with over 1,200 individual charge investment opportunities become clear. Type-2AC 1400 “Incentives will be key. Industrial the right to plug, he explains, with has developed a 100kWh battery ambitious programme. points across a targeted European Hajesch concludes: “It’s an exciting policies on car charging are one chargepoints installed close to their with a range of more than 600km, And, according to the latest Global footprint of 24 countries. time for IONITY. We’re a driving force 1200 2011 2015 2019 option, but we also need to look at home so they could recharge over- as well as some less conventional Infrastructure Index – a survey of Michael Hajesch, chief executive of behind the transition from installing EV 1000 subsidising new energy vehicles night, without needing a driveway methods of vehicle charging. These 20,000 people from around the Jon Phillips IONITY, says: “Intense research and charging infrastructure where needed, and rewarding the construction of or garage. include swap shops, where drivers world, published by Ipsos MORI in Corporate affairs director heavy investments into the locations of It only just started. to it being so integrated in everyday life 800 charging piles. Another promising It's something that’s been taken up can exchange their fl at batteries for partnership with GIIA – the gen- Global Infrastructure IONITY’s charging stations have been With new EV sales that it becomes second nature.” 600 idea is to establish a joint venture by Westminster City Council, which a freshly charged one, and a valet eral public agrees. The 2020 sur- Investor Association complemented by the development of Tesla SC of car manufacturers, sellers and has launched Electric Avenue, in service that sends a van with power vey found that public sentiment state-of-the-art technologies, to ensure forecast to reach 44 400 major electric power companies to collaboration with Siemens and ubi- banks to charge cars at home. supports the positive role private GIIA is the membership body for a future-proof and sustainable network.” million vehicles a year For more information please visit 200 fast-track EV infrastructure.” tricity. Twenty-four lampposts have “We need to convince and pro- investors can play in renewing and the leading infrastructure inves- The resultant award-winning charg- ionity.eu Munich-based IONITY is creating been turned into EV charging points vide certainty to the customer,” says rebuilding our infrastructure. tors around the world that collec- ers offer up to 350kW of 100 per cent by 2030, investment 0 an extensive high-power charging for local residents, with a further IONITY's Hajesch, “so at the end In the UK, 82 per cent of those tively have close to $1 trillion in renewable energy and multi-brand com- 2011 2012 2013 2014 2015 2016 2017 2018 2019 opportunities network across Europe. Each country two adjoining roads due to be added there is no reason not to go for an EV surveyed agree that investment assets under management across patibility, by using the European stand- European Alternative Fuels Observatory 2020 has its own issues, explains managing to the network. as their next choice of vehicle.” in infrastructure is vital to the more than 50 countries ard CCS (Combined Charging System). become clear 10 FUTURE OF INFRASTRUCTURE RACONTEUR.NET 11

WHERE INVESTMENT IS NEEDED

Comparing the current trajectory of spending from 2016 to 2040 and the investment needed Current trends ($trn) Needed ($trn) 00% Main sector in investment gap if countries are to match the performance of their best performing peers ($trn)

UNITED STATES UK ITALY RUSSIA 88% 92% 64% 86% Some $15 trillion of additional investment is needed worldwide over the next two decades if economies Transport: Road Transport: Rail Transport: Rail Transport: Road want to keep pace with the infrastructure needs of tomorrow. This infographic explores where those 8.5 1.7 1.2 1.1 gaps will arise, and which sectors and countries are in need of the most investment 12.3 1.8 1.6 1.8

INVESTMENT GAP IS SET TO WIDEN

Comparing the current trajectory of spending from 2016 to 2040 and the investment needed Current trends Investment need $79TRN (if countries are to match the performance of their best-performing peers). will be spent worldwide 56 countries were used in the analysis on transportation, energy, 4.41 water and telecoms $4.5tn infrastructure between 2016 and 2040, equivalent to 2.99 4.04 $4.0tn 0.78 per cent of GDP, as of 2015 3.66 0.67 $3.5tn 3.65 3.30 0.58

2.92 3.37 $3.0tn 0.48 3.09 $94TRN 0.39 2.81 is required to meet $2.5tn predicted infrastructure 2.53 needs, equivalent to 1.99 1.82 3.55 per cent of GDP $2.0tn

$1.5tn $15TRN $1.0tn MEXICO BRAZIL NIGERIA SOUTH AFRICA INDIA CHINA estimated additional $500bn 85% 72% 38% 31% 31% 75% infrastructure Transport: Road Transport: Road Transport: Road Energy Telecoms Energy investment required 0.5 1.5 0.7 0.3 3.9 26.5 to meet needs $0 1.1 2.7 0.9 0.4 4.5 28.4

2007 2012 2017 2022 2027 2032 2037

Global Infrastructure Hub 2018 Global Infrastructure Hub 2018 Raconteur analysis/Global Infrastructure Hub 2018

PROJECTED SPEND WORLDWIDE AND WHERE THE GAPS IN SPEND ARE, BY SECTOR

Cumulative estimated infrastructure investment based on current trends, and investment required to meet needs, from 2016 to 2040 Energy Telecoms Transport: Ports Transport: Rail Transport: Road Water Air

Projected spend 25.6 7.8 2.1 1.7 10.2 25.7 5.7 78.8 VALUE ($TRN) 0.6 Gaps in spend 2.9 1.0 1.1 8.0 14.9 0.5 0.7

Projected spend 7% 3% 1% 3% 85% 1% 100% SHARE OF SPEND Gaps in % % % % % % % % spend 20 7 4 4 8 54 5 100

Raconteur analysis/Global Infrastructure Hub 2018 12 FUTURE OF INFRASTRUCTURE RACONTEUR.NET 13 Commercial feature ITM Power People have been talking about hydrogen for years, Q&A but what’s been missing is how it can be implemented at a Investing in hydrogen: town or city level building a new

network and the current appliances economy into your home would work fine,” he advises. Beyond that we’ll be looking at a mass rollout, with pipework need- Hydrogen is key to the UK achieving net zero by ing to be replaced. Alongside transport and domestic 2030. Deloitte’s Daniel Grosvenor, UK renewables energy demands, green hydrogen leader and author of Investing in hydrogen: could also play a major role in decar- bonising industry in the UK, espe- Ready, set net zero, and Nick Prior, global head of cially when combined directly with a renewable power supply, such as a infrastructure and capital projects, discuss how wind farm. Or you could build an electrolyser to establish a hydrogen economy on the ground, plugged directly into that renewable power supply, as ITM Power are doing in Humberside as part of the Gigastack project, which seeks to power the Phillips 66 refin- GREEN HYDROGEN to net zero and make investment in ery with green hydrogen produced Why hydrogen? What role can it carbon price needs to be as high as backdrop to give the private sector the hydrogen more attractive. by Orsted’s offshore wind farm. play in the UK reaching net zero €200 a tonne to make projects eco- confi dence to invest in hydrogen solu- “We’re not just interested in blue- The project received a £7.5-million by 2050? nomically viable under a net-zero envi- tions in the same way everybody now Infrastructure for the true level of fi nancing needed sky research,” he says. “The centre boost from the UK government last Hydrogen has the potential to ronment. However, the current price accepts electric cars are the only way economic stimulus to deliver the UK to net zero is was constructed to work with busi- February to take it to its next phase. replace natural gas in heating would most likely shut down the UK’s forward. We need to get hydrogen in and achieving net around £1 trillion up to 2050. Bold vision for renewables nesses and to support a potential Along with the Gigastack pro- and industrial processes and petrol and steel and metal industry and make the same position. zero by 2050 Owing to the complexity of the hydrogen fuel cell supply chain.” ject, ITM Power has an 8 mega- diesel for hard-to-electrify transport. car manufacturers uncompetitive. challenge, government money These businesses range from com- watt-project in Teesside, their Domestic gas boilers can be shifted Therefore, it’s important to manage What’s the game-changer alone will not suffi ce, private Reaching net zero will require a major infrastructure overhaul, but for panies developing hydrogen-ca- largest hydrogen bus refuelling to hydrogen using the existing or an that transition and to not lump costs that’s going to make hydrogen sector expenditure will also be pable boilers, to those working on station in Birmingham, a new stra- upgraded network to create a hydrogen on industries before they can afford and, in the longer term, net Governments grappling with con- pivotal. Yet, while the investment those working in the UK’s emerging hydrogen fuel industry, it represents transport in hydrogen towns. tegic collaboration with Scottish grid. If that’s achieved, then hydrogen them. Furthermore, penalising behav- zero happen? taining and recovering economically metrics for offshore wind and What excites Gaffar the most from Power Renewables, and a new will play a signifi cant role in achieving net iours through increased taxes on con- Defi nitive decisions from gov- from coronavirus must also plot a others are now well established a huge opportunity a hydrogen perspective? “It’s the gigawatt factory in Sheffield. “The zero. However, most hydrogen is made sumption can often impact most those ernment on what a net-zero UK path to achieve net-zero emissions and thus already attractive to energy vector that probably has Northern Powerhouse is alive and from natural gas and therefore this sce- will look like. This will then drive invest- by 2050 to mitigate another great investors, for less-established the most ability to drive change kicking,” says Cooley. “It’s part of nario is dependent on carbon capture ment frameworks so the private sector existential threat, climate change. technologies it’s much more towards decarbonisation,” he says. the levelling-up agenda which I and storage to deliver a low-carbon can invest with confi dence. The scale Confronted with the coronavi- challenging. Therefore, it is Sam Haddad Gaffar and his team have produced a fully support.” solution, known as blue hydrogen. Our of the challenge requires the best of rus recession and climate change, essential for the government to phased hydrogen and fuel cell strat- Gaffar asks: “How do we decar- analysis shows blue hydrogen is signifi - the public sector and private sector many governments have identifi ed outline clear market frameworks he UK government last Hydrogen fuel cells are a clean ITM Power has just moved into the Hydrogen power egy with Greater Manchester, start- bonise those heavy energy-inten- cantly cheaper than green, which uses working and collaborating together. an obvious opportunity: invest and compelling business models T month unveiled a ten-point and efficient source of energy. They world’s biggest electrolyser factory electrolyser stacks ing with public sector HGVs running sive industries? By clustering the renewable energy and electrolysis to Step one is a political statement that in infrastructure to stimulate for these nascent technologies, plan for a green industrial were invented in 1839 and have which has a capacity of 1GW a year. on hydrogen fuel and moving onto heavy energy-intensive industries produce hydrogen. But we are likely to people genuinely believe as the future. the economy and draw down such as low-carbon hydrogen, revolution. It is a bold response to been used by Nasa for decades, so “The UK government has set a tar- large volume hydrogen supply to the together.” He is working with the need both to deliver net zero. In the same way The ten-point plan is a good start, but greenhouse gas emissions. Yet a and carbon capture and storage. the twin challenges of the climate why is it suddenly being earmarked get of 5GW of hydrogen production population by 2026. North-West Energy and Hydrogen the government needs to keep going highly constrained public purse To overcome the understandable crisis and the coronavirus economic to play such a key role in our future capacity over the next decade. The He suspects things might move Cluster, which has received some How can the cost of the tech- everybody now and create the regulatory environ- means to do this it is paramount capacity constraints within the civil chaos by building back better, sup- infrastructural needs? European Union target is 40GW by more quickly away from oil and gas government funding. Teesside nology be driven down? ment to shore up investor confi dence to spend both strategically and service to deliver these frame- porting green jobs and accelerating “It’s the reduction in cost of 2030, Chile’s target is 25GW by 2030, after the government’s vote of con- also has a cluster, called Net-Zero Innovation can drive the cost accepts electric cars and importantly deliver at a low cost wisely, as Deloitte outlines in its works, the government should the UK’s path to carbon net zero. renewable power and net zero,” all the targets are at the gigawatt scale fidence in the technology. “People Teesside. And the Humber region down, increasing effi ciencies and are the only way of capital. If the government gets it new report Infrastructure as an invest in qualifi ed and highly The proposals, which include driv- says Dr Graham Cooley, chief exec- and ITM Power is the first electrolyser have been talking about hydrogen has set an ambitious target of the economics. Ultimately, we need to right, the UK will be a very attractive economic stimulus. competent resources to expand ing the growth of low-carbon hydro- utive of ITM Power, a Sheffield- company to design, build and move for years, but what’s been missing is becoming the world’s first net-zero build at scale. The offshore wind sector forward. We need to destination for investors. We have the The UK government’s own, capability, particularly within the gen, require significant renewable based business that has been mak- into a gigawatt factory. We are world how it can be implemented at a town industrial cluster by 2040. is a success because it installed thou- get hydrogen in the benefi ts of a sophisticated fi nancial newly announced Ten Point Plan respective departments, and uti- energy investment and necessitate a ing electrolysers for 20 years. “In leaders in the UK,” says Cooley. or city level,” says Gaffar. “They’re all inadvertently com- sands of turbines and continually made system, skills and expertise, and a very for a Green Industrial Revolution lise devolved governments to also major infrastructure overhaul. the UK, at the last auctions, wind Amer Gaffar, director of the One ambition from the govern- peting against each other to become the process more effi cient each time same position well respected, stable legal system to is, as it says, a huge opportunity drive the agenda. This will ensure Some of the funding will come from came in at under 4p per kWh; the Manchester Fuel Cell Innovation ment’s ten-point plan is to create the UK’s first low-carbon industrial with incremental innovation. The same underpin investments and infrastruc- to stimulate the economy and it can create the right framework, the government, but much more from solar record was recently beaten in Centre at Manchester Metropolitan a hydrogen town by the end of the cluster. But they are also presenting is needed for hydrogen. ture. And we still have a government create jobs while decarbonising with the right investment signals the private sector, with many fund Portugal with €.01.1 cents per kWh, University, says the centre’s labora- decade. At the end of November, a their portfolios, an investor-ready Part of that falling cost has been that has credit people will bank on. key sectors. The plan outlines around retraining, skills develop- managers excited at the prospect. As which means you can make green tories produce hydrogen from fuel pilot scheme to heat and power 300 set of projects, that are ready to go or the cost of capital. Investors are Therefore, if the government gets the infrastructure investments in ment, resources and infrastruc- the former Bank of England governor hydrogen at a lower cost than nat- cells in pure science terms, but they homes in Fife with green hydrogen even already being implemented,” desperate to compete, therefore the policy environment right, for sure the hydrogen, electric vehicles, ture, so the private sector can take Mark Carney says: “The transition to ural gas. Green hydrogen is the also work with local businesses to was announced, with funding from says Gaffar. capital ploughed into offshore wind is least able to afford it, so it’s important investment will follow. public transport, offshore wind, up a chunk of the workload. net zero is creating the greatest com- only net-zero energy gas that can drive engagement with renewables, energy regulator Ofgem and the ITM Power secured a new round much cheaper now than it was at the the process is carefully planned to and carbon capture and storage. Deloitte’s framework for infra- mercial opportunity of our time.” replace methane.” help companies make the transition Scottish government. The pilot will of funding in October to further beginning. Similarly, the cost of gov- ensure fairness and avoid an increase These investments will be backed structure investment can help begin at the end of 2022. their goals. “The City of London ernment and private sector borrowing in fuel poverty. by £100 billion of capital expend- every pound the government Again, Gaffar says things don’t need is incredibly well informed about for capital expenditure has never been For more information please visit iture in the fi rst year, a National spends create returns of up to 2.7 WHAT ARE NEW APPLICATIONS FOR HYDROGEN? to happen overnight and the tran- green hydrogen,” says Cooley. lower and is likely to stay that way for Next year the UK will host the deloitte.com/uk Infrastructure Strategy and a new times the initial outlay. Along with sition phase to hydrogen-powered “What we need is the policy from the next few years. 2021 United Nations Climate UK Infrastructure Bank. the new National Infrastructure Global energy leaders and stakeholders cite their top uses for renewable hydrogen power energy generation can be managed by the UK government with ten years Change Conference, or COP26. Investing in hydrogen: However, as comprehensive as Bank, implementing these meth- integrating hydrogen into the current of incentives to encourage the Besides solid business and What effect could this have on Ready, set, net zero it is, the programme is only the odologies will give the government 18.3% 12.5% 12.5% 46.9% 13% gas network. “Tests have been going switch from natural gas to green market frameworks, how else hydrogen policy? deloitte.co.uk/investinginhydrogen fi rst phase of what needs to be a strong chance of succeeding in Storage Heat Industry Mobility Power on for quite a while to see how our cur- hydrogen, and policy stability, and can the government incentivise The geopolitical environment achieved and represents a mere building back better, as it says, energy on net zero is really coming fraction of the actual investment while cementing the pathway to use rent gas network operates with hydro- then it will unlock all the invest- investment in low-carbon infra- gen injected into it. From a tech usa- ment. We’re currently world lead- structure such as hydrogen? together; there’s a real opportunity to opportunity. Deloitte estimate net zero by 2050. bility perspective, you can inject up ers, but we will be left behind if we A possibility is a workable carbon make COP26 all about net zero. The World Energy Council 2019 to 20 per cent hydrogen from the gas don’t have a bold vision.” tax. Some estimates suggest a government can create an economic 14 FUTURE OF INFRASTRUCTURE RACONTEUR.NET 15 Commercial feature

EMERGING MARKETS GLOBAL INFRASTRUCTURE INVESTMENT WILL DRIVE INVESTING ACROSS INFRASTRUCTURE SECTORS Sequoia Investment Management Company 2020 POST-COVID RECOVERY 11.3% Percentage of the global public who agree with the statement “I expect my government to make investment in infrastructure a priority when planning Other Investment opportunities post-COVID for the post-COVID-19 recovery” 21.1% Global Transport 10.7% As countries Accomodation around the world 68% 7.1% strive to rebuild Transport assets their economies 16.9% 8.2% after the fallout of TMT Utility the coronavirus pandemic, many 88% 85% 85% 15.5% Power developed nations Creative Touch Imaging Ltd./NurPhoto via Getty Images 9.2% Renewables are turning their Peru China India attention to infrastructure projects overseas 84% 74% 69% Infrastructure’s a safe

South Africa Malaysia Great Britain haven for investors Finbarr Toesland During a hugely turbulent year, investors have found much- espite the ongoing coronavi- needed calm and stability in infrastructure funds, says D rus pandemic causing many 62% 47% 40% promising investment pro- Steve Cook, director and head of portfolio management jects to break down, emerging econo- mies are continuing to drive demand at Sequoia Investment Management Company for infrastructure investment. Reinsurance firm Swiss Re estimates USA South Korea Japan that infrastructure investment in emerging markets presents an annual Global Infrastructure Investor Association 2020 How has infrastructure as an more expensive for them to lend long- What approach does Sequoia opportunity of $920 billion for inves- asset class evolved over the last dated debt and subordinated debt. Yet take in this area and, geograph- tors, highlighting the potential of this ten to fifteen years? clearly the need for capital didn’t go ically, where do you see the expansive asset class. emerging markets result not only in there may be a host of projects Asset classes like renewable away, and it’s growing further as gov- best investment opportunities? With such a large number of infra- profits for the investor, but also in available, but considerable uncer- energy have become more main- ernments seek to advance their TMT Our high-yield Sequoia Economic structure projects in the pipeline improvements to the lives of local tainty in terms of execution, given stream as the cost of capital has come infrastructure and meet ambitious Infrastructure Income Fund is across the world, identifying which spectrum of infrastructure invest- challenges,” says David Williams, Wind turbines election victory will have in terms sources to finance the infrastruc- residents. This win-win scenario political or economic uncertain- down and the ways in which they get goals around net-zero carbon. To fill the one of only two listed infrastructure nations hold the most potential is no ment, but rather different countries partner at international law firm generate of catalysing infrastructure invest- ture society needs to thrive over the can offer powerful economic, social ties and questions of certainty financed have become more sophis- void, institutional lenders’ debt funds debt funds on the LSE. We are also small task. Dr Nuno Gil, professor may offer particular opportunities Simmons & Simmons. electricity in ment in the United States. It must be long term,” says Watson. and environmental benefits to host of the local system. In developed ticated. With renewables, electric- have stepped in, along with insurance the Investment Adviser on Sequoia Punniyavalanpuram, of new infrastructure development in distinct sub-sectors. It is clear that emerging and Tamil Nadu, India hoped that there is now opportunity Private capital firms are constantly nations. Jon Phillips, director of cor- nations, on the other hand, the ity supply can fluctuate depending companies and pension funds. It pre- Infrastructure Debt Fund, a private at Alliance Manchester Business “Brazil, and Latin America more developed economies alike will for very substantial investment, pub- searching for infrastructure invest- porate affairs at the GIIA, points to political, economic and legal cli- on weather conditions, so you need sents great opportunities for investors, euro investment-grade/crossoverfund School, believes no single nation generally, has been offering oppor- be prioritising infrastructure lic and private, in infrastructure gen- ment projects in emerging markets cases of investment that are deliv- mate may be more predictable, ways to add back-up capacity to the not just in the asset class growth, but investing in core Europe. We take a scores better across the whole tunities in the renewables sector investment in the post-COVID erally and ‘green’ initiatives in par- that are likely to offer solid returns. ering innovative infrastructure but there will be more competition grid, and therefore assets like standby pricing too. More demand for capital global approach to the market, and we for a while, and will continue to do landscape. According to the recent ticular,” says Williams. But identifying potential investments which is both environmentally and for deals and so potentially lower generators, battery storage and peak- than supply means very robust returns have found the withdrawal of banking so in the future. But African nations Global Infrastructure Investor While governments target inclu- is difficult to achieve when enter- socially responsible. returns, even assuming you can ing plants have also become impor- on infrastructure debt. capacity and capability has created huge with a burgeoning, if small, upper Association (GIIA)/Ipsos MORI sive and green infrastructure prises are usually based in developed “Examples include CLP India access those opportunities.” tant. Electric vehicles, meanwhile, opportunities, especially in those newer class, such as Nigeria or Egypt, may Global Infrastructure Index, close to investment strategies, as well as nations, far from the emerging mar- which, on a macro level, is supporting Parallels may exist between the create the need for chargepoints. How have infrastructure invest- infrastructure asset classes in TMT, grid offer opportunities in healthcare, 70 per cent of respondents said they recent Linklater research finding kets where they are investing. India’s decarbonisation and renew- issues that arise when making infra- New asset classes have also emerged ments fared during the corona- stabilisation and renewable energy. We although the pandemic may have expect their government to make that infrastructure funds expect to Williams believes local engage- able energy agenda, but also help- structure investment in developed in the technology, media and telecom virus crisis? invest in numerous developed mar- changed things,” he says. infrastructure investment a priority grow green assets by more than a ment is key to uncovering hard- ing on a local level through the pro- and emerging markets, namely (TMT) sector, including mobile-phone Overall, they’ve performed kets, but our jurisdiction of choice is the 3.9% Until the dust settles by the end of when planning a post-COVID recov- fifth by 2022, private sector capital to-find opportunities. “It is really vision of healthcare facilities which political and regulatory uncertainty towers, datacentres and subsea data really well. Part of the invest- United States. It’s a very large jurisdiction 2021, according to Gil, it may be dif- ery, while 68 per cent supported pri- has an important role to play to meet important to have either a strong provide medical care to more than to varying levels, but less devel- cables. We are not just seeing all these ment thesis for infrastructure is the that’s naturally diversified and it’s where of GDP invested by emerging ficult to see clearly where opportu- vate investment. the scale of investment required. local presence or a strong local part- 58,000 people,” Phillips adds. The oped countries offer unique obsta- new asset classes emerging, but also stability of the assets. They’re essen- we see the widest range of investments markets in infrastructure nities lie. However, the rise of infra- Developed nations, too, are focus- Daniel Watson, head of sustain- nership, people on the ground who rise of corporate social responsibility cles. While emerging economies are some other asset classes beginning to tial assets, sometimes regulated, with and generally the best valuations. There’s over the next 20 years structure investment in Asia will ing on how infrastructure investment ability at Amber Infrastructure can spot opportunities and then has impacted how capital is deployed not a monolith, challenges around fade out. Coal-fired power stations, for huge barriers to entry, so they tend to a shortage of capital, but a massive for- continue, with the International can play a central role in rebuild- Group, a specialist international undertake due diligence, develop, across the world, with profit maxi- contract enforcement, corruption, example, are being decommissioned at be non-cyclical and defensive. Some ward demand for US infrastructure Finance Corporation predicting 60 ing their economies after COVID- infrastructure investment man- execute and monitor projects from misation increasingly balanced with weak institutions and poor-quality a rate of knots. They become stranded parts of our portfolio have actually spend, arising not just through new asset per cent of global infrastructure 19. “It will be interesting to see to ager with $8 billion under manage- close at hand,” he says. environmental and societal concerns. information relating to investments assets, with withdrawals of capital outperformed this year, including the classes, but also maintaining core infra- spend until 2040 will be in Asia, in what extent the Biden presidential ment, has seen how global inves- Possessing local knowledge pro- Even when private infrastructure are common themes investors have through environmental, social and gov- TMT sector which has benefited from structure. The American Society of Civil $929BN part due to the rapid population and tors are increasingly seeking out vides insight into how to navigate investment is made without particu- to deal with. As more investors ernance considerations. more people working at home. We Engineers estimates the United States investment opportunity economic growth in this region. environmental, social and govern- often complex financial ecosystems, lar consideration of the impact it will engage with emerging markets, expect this to continue with the roll- will require $4.5 trillion to upgrade its presented by infrastructure Urbanisation in Africa is also driv- ance-linked investments with gov- especially when host countries have on local communities and devel- these risks become more predicta- Why has infrastructure debt out of 5G and as the world becomes existing national infrastructure by 2030 in emerging markets ing infrastructure investment on ernments now having a real oppor- differ dramatically to the nations opment, social gains can still material- ble and manageable. become such an attractive increasingly connected. Clearly there and only around $2.5 trillion of this has the continent, especially as fore- tunity to seek the “right type” of where investors are based. Specialist ise. Constructing new roads can open Rapid urbanisation and unprec- opportunity for investors? have been a few pockets that have had been identified. That large shortfall is a casts show its urban population will economic growth as nations recover investors, including India’s National up business opportunities for every- edented demographic changes are Virtually all infrastructure lend- a difficult year, such as aviation, but significant opportunity for investors. grow from 40 per cent in 2015 to 60 from COVID. Investment and Infrastructure Fund one from farmers to entrepreneurs powerful mega-trends which can be ing used to be done by banks, for the most part we’ve found a lot per cent in 2050. “Africa as a con- “By clearly linking infrastruc- and the World Bank’s International who have been cut off from markets expected to alter the lives of citizens but the financial crisis of 2008 led to a of the affected assets bounced back 54% tinent has enormous potential for Africa has enormous potential ture investment opportunities to Finance Corporation, can also play and building hospitals can foster the in every country. Yet, rising to the retreat. Some banks closed, including really quickly. Almost entirely across For more information please visit infrastructure investment across global sustainability frameworks, an important role in creating part- creation of a healthcare ecosystem. challenges brought about by these big infrastructure lenders with more the board, we have seen great resil- seqimco.com a range of sectors, from telecoms for investment… the need is for example the United Nations’ nerships with private capital on At every stage of the infrastruc- transformative events will require than $100 billion of infrastructure ience in the infrastructure sector. of emerging market spend will through energy to transport. The Sustainable Development Goals, infrastructure investment. ture investment process chal- infrastructure to be built, modern- debt. Other banks just got smaller or Relatively speaking, it’s been an oasis be accounted for be China immense, though the same need is clearly immense, though of the public sector has a chance to Many infrastructure investments lenges must be overcome. Williams ised and replaced so it is able to bet- focused only on their domestic mar- of calm and a safe haven through the Swiss Re 2020 course the same can be said for the can be said for the challenges leverage significant private capital made by private capital firms in says: “In the developing world, ter support people across the world. kets, and regulatory changes made it chaos seen in many other sectors. 16 FUTURE OF INFRASTRUCTURE RACONTEUR.NET 17

DIVERSITY Infrastructure is publicly funded, we are asking people to Building pay for a world that Hinterhaus Productions/GettyHinterhaus Images doesn’t always meet a better their needs infrastructure its requirement to prove they are employing more disabled people. sector Thames Water was the fi rst water company to reach Disability Confi dent leader status as part of EV Charging GLOBAL A career in infrastructure can be wider D&I plans, including attract- fulfi lling, fun and fi nancially rewarding, ing women in STEM, advancing eth- INFRASTRUCTURE nic minority talent in leadership Research Service so why are so many young people and management positions, sup- porting armed forces communities deciding not to work in the sector? and becoming a top employer for INVESTOR LGBT people. “This is not just morally the right Helping you to succeed in the Magda Ibrahim thing to do, but also critical to ASSOCIATION ensuring a high-performing, fi nan- European EV charging sector olstering economic produc- and will recruit additional commis- cially sustainable sector,” empha- B tivity, tackling the eff ects of sioners refl ecting diverse talent. sises Gosiewska. climate change, developing Diversity at the highest levels of For Dr Alice Maynard, manag- connected communities: truly trans- policy and decision-making is crit- ing director of consultancy Future Representing the formational change through infra- ical to avoid “implicitly building Inclusion and former chair of structure needs a laser focus on diver- a world that excludes a large pro- Transport for London’s independent Know your Market: Primary customer world’s leading sity and inclusion (D&I). portion of the population”, says disability advisory group, who has a research, competitor intelligence, An infrastructure project pipeline Ann Zhang, an economist at PA CBE, more transformational change is investors in worth hundreds of billions, coupled Consulting and chair of the NIC’s needed in how leaders approach D&I topical insights with a skills shortage facing the sec- Young Professionals Panel. to avoid it being a tick-box exercise. infrastructure tor, means there is an urgent need to “As so much infrastructure is pub- “But when people actually get it, tap every talent pool. licly funded, we are also asking peo- this becomes a signifi cant priority Size the Prize: Market-leading Traditional stereotypes of the ple to pay for a world that doesn’t and they are very creative and fl ex- infrastructure industry must be dis- meet their needs,” she says. “We ible in looking at their systems, pro- EV charging data and forecasts pelled forever as a new paradigm, have seen a shift in the infrastruc- Women make up fewer than a quar- challenges, such as an ageing popu- Across the wider industry, cel- cesses and culture,” she says. embracing the full potential of ture industry where clients want ter of employees in the water and lation, sustainability and the skills ebrating diversity in the work- Perhaps the greatest challenge fac- every current and future employee, to see diverse teams with diverse energy sectors, which also have just shortage we face in the industry.” place has snowballed. The Building ing all organisations is gathering Road to Success: Ongoing support emerges, say sector leaders. networks, so it is essential to align 7.1 per cent BAME employees. The next challenge is retention of Equality alliance of construction robust data that allows for identi- and incisive opinion from our team “There is a huge pool of talent rul- with the wider market sentiment. The National Centre for diverse talent and fostering a cul- consultants, engineers, develop- fying diversity gaps and planning a ing themselves out,” warns struc- Ultimately, it could hit the bottom Universities and Business found ture of inclusivity, allowing employ- ers and contractors has swelled to programme of change. of experts tural engineer Roma Agrawal, who line and that is powerful.” just 15.2 per cent of engineering and ees to be themselves at work, boost- more than 40 organisations driving Network Rail’s Martins believes has worked on projects including The NIC launched its fi rst D&I technology undergraduates in 2019 ing confi dence and productivity, LGBT+ (lesbian, gay, bisexual, trans “undersharing” is an issue in gath- The Shard and was awarded the strategy in September, setting were women, highlighting a signifi - and progressing their careers. and related communities) inclusion ering data on disability and sexual MBE for services to the industry. ambitious targets for itself and the cant gap in potential new entrants to Reverse mentoring for executive in the past fi ve years. orientation as people are wary of “Working in infrastructure is fun wider industry. the infrastructure industry. leaders, where they are mentored Despite slow progress since the how the information will be used. and important; you see the eff ect on It is measuring success against Brittany Harris, co-founder and by a junior employee from a diff er- government launched its Disability “We know the ethnicity of 87 per cent people’s lives whether that is power achieving 50 per cent women, 14 per chief executive of construction tech- ent background, is dispelling stere- Confi dent scheme in 2016, around of our workforce, which has allowed networks, sewage systems or roads,” cent BAME (black, Asian and minor- nology fi rm Qualis Flow, says visi- otypes around gender, race and sex- a dozen fi rms in the infrastructure us to talk about the ethnicity pay gap, she says. “It is also pretty well paid, ity ethnic) and 13 per cent disabled ble role models make a diff erence. ual orientation at Network Rail. sector, including HS2, FM Conway but we need further data on other so it is sad when young people won’t people working within the NIC by “At school, I knew I wanted to work Six employee networks include and Kier Highways, have now minority groups so we can change and even consider a career because of 2023, to better refl ect society at large. in science, but when I started look- Archway, focused on lesbian, gay, reached the highest leader level, with improve,” she acknowledges. GIIA members invest outdated stereotypes.” As well as hitting those targets, ing into engineering, every piece of bisexual and transgender issues, Last month, the government the organisation wants to foster marketing material showed a white as well as the disability-focused in transport, energy, launched its National Infrastructure an inclusive work environment, by male,” she says. “It was only after CanDo, and groups around women, Strategy, focused on economic adopting a zero-tolerance approach meeting more representative role diverse cultures, faith and those HOW INFRASTRUCTURE IS PERFORMING ON DIVERSITY utilities, digital and social recovery, levelling up regions and to bullying and harassment, and models that I realised these spaces with caring responsibilities. The proportion of the UK workforce Women BAME achieving net-zero greenhouse gas planning mental health and wellbe- were open to me.” “An unintended consequence of who are female or BAME infrastructure across 50 emissions by 2050. ing support. Concerted eff orts are being made our networks is that we are attract- countries. This is delivering The strategy also pinpointed Cissie Liu, senior regulation ana- by organisations to engage children ing new employees because we are the need to diversify Treasury- lyst at energy company SSE, says and young people in the creativity diverse and inclusive,” adds Martins. the modern, efficient and sponsored agency the National there needs to be a step-change and innovation a career in infra- Physical improvements to the Infrastructure Commission (NIC) so non-minorities are invested in structure demands. work environment, such as toilet environmentally responsible D&I. “The burden should not be Network Rail recently ran a nation- facilities, are making a diff erence for 47% 21% 19% 22% on minority groups to drive the wide STEM (science, technology, Network Rail, while Thames Water infrastructure needed for change,” she says. “It should come engineering and maths) competi- has introduced female-friendly per- from the top down.” tion with schoolchildren aged fi ve sonal protective equipment during www.delta-ee.com future generations. A major issue impacting the infra- to fourteen, celebrating the work of the coronavirus pandemic. 15% 6% 4% 5% structure talent pipeline is ensuring female inventors and engineers, and Overhauling family leave policies a more diverse range of people are is involved in the annual children’s and “promoting male role models Working in entering the industry. Leaders Award to create innovative who work fl exibly or take shared infrastructure is fun At present, only 10.6 per cent of designs that shape the future world. parental leave to break down stigma For more information visit the UK’s professional engineers Director of D&I at Network Rail and ensure a level playing fi eld” is and important; you are women, according to latest Loraine Martins, who has also part of a drive to improve gender www.giia.net All sectors Infrastructure Water Energy & get to see the eff ect data from the Offi ce for National been awarded an MBE, says engag- equality at Thames Water, says cul- Utilities Statistics, although this has ing young people is key to captur- ture, inclusion and engagement lead on people’s lives increased from 7.6 per cent in 2015. ing “diff erent ideas to help meet big Sarah Gosiewska. Brainthinks and Greater London Authority 2020 18 FUTURE OF INFRASTRUCTURE RACONTEUR.NET 19 Commercial feature

A full and detailed roadmap to net zero has yet to be established and that has to be a fi rst step Q&A

None of this innovation will deliver He argues that, as well as being How infrastructure progress without the help of consum- readily available, access to infra- ers. The greatest challenge of all is structure must be a transparent ensuring they are incentivised by and easy process because the more investing can improve government initiatives and ease of complicated it is, the less likely peo- access to switch to greener sources of ple are going to use it. In the case of power in their day-to-day lives. EV charging, Reich believes drivers Ofgem, the energy regulator, “should be at the centre of any strat- sustainable agrees that consumers must be at egy if it is going to be successful”. the centre of any net-zero strategies. One thing is clear, in a fragmented “We’re working to deliver a greener, market, the ability of the UK to development fairer energy system for consum- deliver on its net-zero targets rests ers,” says Akshay Kaul, director for largely on the government’s ability networks at Ofgem. Their priority, to draw together eff orts in a consoli- he says, is “making sure the invest- dated way, with close input and over- Lord Mark Malloch-Brown, ment made by the monopoly energy sight between policymakers, inves- networks will deliver cleaner energy tors, tech companies and consumers. senior policy adviser at at the lowest cost to consumers.” In the context of the sustainable And beyond cost, it also needs to innovation happening all over the I Squared Capital, shares be easy for consumers to use, says UK, the challenge for policymakers Patrick Reich, co-founder and chief is fi nding a way to draw all these dif- insights on sustainable executive of Bonnet, a new app with ferent approaches together in a clear infrastructure investment funding from Porsche that aims to and co-ordinated way. Without this, address the fragmented charging the country’s ability to meet the infrastructure for EVs, making it eas- legal commitments it has made with ier for consumers to charge them. the net-zero challenge is in peril.

NET ZERO Another signifi cant and unique else. “The fi rst challenge is to What role can infrastructure towards a shared car ownership model. challenge for infrastructure is that replace all fossil fuels with clean HOW MUCH WILL ACHIEVING NET ZERO COST? investors play in driving the For almost every sector, where people it’s a sector that depends predom- energy and the second is to ensure Average funding required by sector to achieve net zero by 2030 United Nation’s Sustainable are seeking change in terms of SDG inantly on fi xed assets, whether there are enough power-genera- (£bn per annum) Development Goals? performance, there is an infrastruc- that’s electricity distribution, tion facilities to meet the increased Infrastructure is the platform ture role. For example, we’re going to Infrastructure is key chargepoints for electric vehi- demand,” he says. on which a lot of the other see a dramatic change in agriculture to development. Taking on the Power systems Buildings and Transport Digital cles (EVs) or off shore wind farms. There is perhaps no organisation Sustainable Development Goals (SDGs) and food production with a real focus industry Upgrading pre-existing structures that plays a greater role in this in the deliver. We live in a world with very on cutting down food waste by invest- People without therefore needs to be carefully UK than the National Grid, given uneven infrastructure which doesn’t ing in infrastructure that improves 9 modern infrastructure net-zero challenge planned to minimise disruptions to that clean energy will underpin the refl ect population distribution. There storage, shortens the journey times to the wider economy. success of every other area. is a huge infrastructure defi cit in devel- market and localises food production need it just as much At the same time, new infrastruc- “In the UK, we are in the mid- oping regions of the world and in devel- in ways not seen before. as city dwellers who The UK is committed to achieving net-zero greenhouse gas ture must be developed to enable dle of a transformation, with the oped regions infrastructure is often 8 areas of innovation, such as hydro- energy we use increasingly com- not fi t for purpose in terms of SDG What are the wider social ben- aren’t getting the emissions by 2050, but getting there is not straightforward gen, carbon capture and storage, ing from cleaner greener sources,” achievement. We’re a world badly in efi ts of infrastructure investing? and this infrastructure needs to be says Graeme Cooper, project direc- need of an infrastructure surge to cor- Infrastructure is simply at the benefi ts they want underpinned by a regulatory frame- tor at National Grid. “The National rect the existing infrastructure foot- core of any development model. work set by the government. In Grid is at the heart of that energy 7 print and to build out a new footpath People who have not been reached by many cases, this is still pending. transformation, investing around where there is currently just a toehold modern infrastructure are every bit as bias towards infrastructure in the Rose Stokes As a nod to the scale of the task, the £1.3 billion each year to adapt and in many parts of the developing world. much in need of it as middle-class city developed world even though the eco- government recently set out a ten- develop our transmission network dwellers whose infrastructure is not nomic returns to society as a whole n 2019 the UK became the of progress are beginning to show, targets hinges on the available point plan for what it calls the Green to connect new sources of low-car- 6 Why is infrastructure a better delivering the benefi ts they expect it to maybe considerably less. I world’s fi rst major economy off the back of historical govern- infrastructure being one step ahead Industrial Revolution, detailing the bon and green energy to our homes route to sustainable investing deliver. When you look at the numbers, to introduce a legal obliga- ment initiatives, it is clear that with- of demand; it’s the baseline upon key areas of focus and an outline for and businesses.” than other asset classes? there is such a gap between the invest- What needs to be done to boost tion to achieve net-zero greenhouse out drastic intervention, achieving which everything else depends. what needs to be done. According to Donovan says the greatest obsta- Partly because it’s an anchor ment need and the amount of invest- infrastructure investment in gas emissions by 2050, in line with net zero by 2050 may be impossible. According to Donovan, the key Donovan, although it provides a good cle is not a lack of available capi- for the rest. You need a new ment going into this sector. But it’s not developing markets? 5 broader commitments made as part “You have to do the maths and challenge in all this is for policy- start, the government’s guidance has tal, but a need for policymakers to infrastructure platform in the world as simple as saying that we need X hun- First, designing investment of the Paris Agreement on combat- work backwards from the long-term makers. “They must properly price not yet gone far enough and needs derisk investment opportunities that addresses green transportation dred billion and we’re only getting Y, products that satisfy the inves- ing climate change. targets to work out what this means the costs of climate change, man- more detail. “Do I see suffi cient align- and update the structures in place and energy if, for example, you are to and all you need to do is fi ll the gap. You tor they are taking a reasonable, but The move signifi ed a clear com- for the next fi ve years or ten years,” age the risks the private sector can- ment across the various levels of gov- to match investors with projects. achieve climate change goals. Secondly, need the right fi nancial products and not excessive, amount of risk, so mitment by the UK government to says Professor Charlie Donovan, not manage for itself and provide ernment?” he asks. “Not yet.” “There’s a disconnect between 4 infrastructure is one of the most fi nan- the right public-private mix to address that’s usually some kind of public-pri- address Britain’s role in mitigating executive director of the Centre for a strategic direction for all sec- So how much will this cost? the volume of capital that needs cially attractive components of envi- the particular risks of long-term invest- vate investment model where a public global warming. It also required the Climate Finance and Investment at tors, but especially infrastructure. According to PwC’s recent Unlocking to fl ow into infrastructure and the ronmental, social and governance ments of this kind. entity is taking a portion of the risk. The government to set out parameters Imperial College Business School. That’s not just long term, but also Capital for Net-Zero Infrastructure way capital markets are set up to do investing because it tends to provide second is structuring deals where the by which the UK creates an equilib- “And when you do the maths, you speaks to the abundance of short- report: “£40 billion per year is that,” he explains. 3 attractive cash fl ows and good returns Where do you see the most investor is not taking a huge currency rium between the amount of green- fi nd that a dramatic change has to term actions required.” required, on average, to be invested “We’re in a situation in which we’re on investment. There’s an infrastruc- need for infrastructure invest- risk. Beyond the fi nancial aspects, house gases it emits versus those it start today or even yesterday.” in new low-carbon and digital infra- trying to capture what could be the ture squeeze; there isn’t enough of it ment to support the UN’s SDGs? there’s also risk around the quality and removes from the atmosphere, oth- The central problem is that such structure over the next ten years, greatest economic opportunity of the to go round, so it secures old-world In the developed world, the capacity of infrastructure projects erwise known as achieving net zero. challenging targets require a consol- with similar levels thereafter, to century, but the diffi culty is infra- 2 returns for a new economy purpose. fi nancing is often easier because on the ground, so ensuring there is a While this might sound rela- idated, cross-sectoral approach to a meet the UK’s net-zero target by structure as a long-term investment the returns are securer. But in eco- trained local labour supply and local tively straightforward, for a country degree never before seen in the UK. 2050.” In terms of the distribution prospect poses a lot of challenges for What specifi c type of infra- nomic terms, if you improve, say, railway managerial capacity is important to whose emissions rank 36th in the By their very nature, these targets of any investment, the report iden- capital markets that are increasingly structure projects can make infrastructure in the developed world make sure projects can be executed as world per capita and 17th overall, necessitate both updates to pre-ex- tifi es the key areas of investment as focused on the short term.” the most impact from a sus- compared to installing a mass-transit effi ciently in a developing country as in 1 reaching this ambitious target will isting infrastructure and the devel- the power system, transport, indus- Donovan believes clear strategic tainability perspective? system in a developing country where a developed country. be anything but. opment of new systems at the same trial and residential buildings, and policy guidance from the govern- The shift to renewable energy is there wasn’t one before, the economic On the face of it, decarbonising pace as technological innovation. When you do the maths, you digital infrastructure. ment is needed to achieve this. Bird going to fundamentally reshape returns in the latter case are going to the economy is a herculean task that Put plainly, when it comes to fi nd that a dramatic change has For Dr Peter Bird, managing direc- agrees: “A full and detailed roadmap grids Power generation carbon Low Power Flexible ciency energy effi and heat Residential Industrial CCUS and hydrogen ciency energy effi Industrial EV charging Cellular (5G) Fibre networks centres Data Smart meters the transport network on which we be much higher than in the former, touches almost every single sector achieving net zero, the ability tor of consultancy BRG, there are to net zero has yet to be established operate, as people move fi rst towards but the fi nancial returns are riskier. So and industry. And while early signs of every single sector to meet its to start today or even yesterday two key priorities before anything and that has to be a fi rst step.” Source: PwC 2020 more mass-transit systems and second at the moment there is an investment BREAK YOUR TEAM FREE FROM EMAIL SO THEY CAN FOCUS ON THE WORK THAT MATTERS. Reduce needless email volume by up to 95% with SEDNA team communication software.

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