Shaping the energy transition
Summit attendees sitting around a table in conversation.
Emissions are on the rise even as trillions of dollars are spent on green infrastructure, demonstrating the importance of keeping sustainability at the center of every effort. The built environment affects around 25 percent of total global greenhouse gas (GHG) emissions and is responsible for nearly 30 percent of biodiversity loss, representing a vast array of large opportunities. At the Summit, there was broad consensus that the industry needs to move much faster in tackling these opportunities and challenges and that advancing the energy transition in an economically viable way is key to ensuring stability and growth in the long term. The following themes emerged:
- The global price of carbon must increase to accelerate the pace of change for major emitters.
- Reducing the carbon intensity of infrastructure must be a priority.
- Innovative materials and construction methods can improve the efficiency, durability, and environmental sustainability of infrastructure projects.
- Repeatability in design and construction are essential to quickly build green megaprojects.
Infratech and project delivery
A fast-growing infrastructure tech and start-up ecosystem is enabling more efficient planning, delivery, and end-to-end asset management. At the same time, digital technologies and new industrialized approaches are altering traditional value pools, with new business models and revenue streams on the rise. At the Summit, participants agreed that the rate of innovation is increasing and that infrastructure leaders will need to compress the time it takes for them to identify, pilot, and implement new technologies. The following themes emerged:
- Accelerating the deployment of generative AI will shorten turnaround times for design and optionality, thus cutting time and costs.
- A clear taxonomy and global standard on digital twins by functionality and data scope will be essential to harness this technology for construction.
- Digital technologies will help optimize infrastructure performance and enable predictive maintenance.
- Digital tools and data in real estate will allow for better planning of green projects and monitoring of emissions.
- Implementing smart city initiatives, including smart grids and intelligent transportation systems, will help enhance urban infrastructure.
- The industry must develop a deep understanding of emerging technologies to adequately leverage them.
Talent, workforce, and supply chain
Recent years have been unsettling to global supply chains. The COVID-19 pandemic kicked off a series of shocks: demand for services plunged, followed by a massive rush for supply and a subsequent spike in inflation and interest rates. Geopolitical fragmentation has also created complexity for sustainability goals.
Adding further pressure is the growing labor gap in infrastructure, with one estimate saying the United States will need to attract half a million new construction workers in 2024 to balance supply and demand. Summit participants uniformly agreed on the importance of recruiting and retaining the talent needed not only to fill today’s workforce gaps but also to advance decarbonization and digital objectives. The following themes emerged:
- Processing resources closer to the source will help remove carbon from the supply chain and leverage labor availability in emerging markets.
- Gender diversity in employment could be a fruitful source for new talent; as such, companies can incorporate diversity and inclusion requirements into bid and tender contracts.
- Ambitious leadership will be required for the bigger transformation.
- Project owners, contractors, and parties trying to solve labor certainty all benefit from multiyear, multiproject frameworks that provide long-term stability of workforce employment.
Investing in infrastructure’s energy transition
Summit panel discussion members giving presentation.
The energy transition is a monumental undertaking that requires significant capital investments in energy assets and enabling infrastructure—$3.5 trillion of new spending will be needed on low-emissions assets each year until 2050. Infrastructure investors and funds have a golden opportunity to deploy trillions of dollars globally in this decade alone; but the path ahead is not straightforward. The set of opportunities is broadening far beyond traditional renewables, including, for instance, sustainable aviation fuels and hydrogen corridors. There are significant geographical nuances in where and how to invest. The following themes emerged:
- Next-generation partnerships are critical to close the investment gap needed for infrastructure to create more win–win opportunities and mitigate rapidly evolving risks.
- Collaborations between governments and private entities will help finance and implement infrastructure projects.
- Better innovation across the board—with technology, partnerships, funding, supply chains, and regulations—will help the industry move forward.
- Government-to-government supply chain management and cooperation will help expedite green infrastructure projects.
- Politics and businesses should align on explaining the cost benefit relationship to consumers and citizens.