Infrastructure Banks: Solutions and best practices

The paper analyzes various infrastructure banks, such as the European Investment Bank and the UK's Green Investment Bank, to identify effective financial instruments and operational models. It argues that infrastructure banks should prioritize financially viable, sustainable projects that offer high socioeconomic multipliers while avoiding the crowding out of private capital. Key recommendations include tapping capital markets, providing technical assistance for project preparation, and utilizing risk-sharing instruments to leverage limited public resources.

• Infrastructure banks can bridge the global infrastructure deficit—estimated at USD 90 trillion needed by 2030—by leveraging government resources to attract private capital through a variety of financial instruments.
• The European Investment Bank (EIB) utilizes three primary service categories: lending (including framework loans for large investment programs), blending (using guarantees to de-risk projects), and advising (such as the ELENA program for energy efficiency and urban transport grants).
• Effective infrastructure banks should prioritize 'additionality,' meaning they should only invest in projects that would not otherwise attract financing on similar terms, thereby avoiding the crowding out of private sector investors.
• Sustainability and stringent environmental standards should be core criteria for project selection to encourage green innovation and help countries meet UNFCCC Paris Agreement emission commitments, especially since infrastructure accounts for 60 per cent of carbon dioxide emissions.
• To maximize limited resources, banks should move beyond outright financing toward innovative instruments such as credit enhancement, risk capital (equity or subordinated debt), and viability gap funding to de-risk transactions.
• A critical role for infrastructure banks is providing project preparation and technical assistance to fill the capacity gap, which transforms unbankable projects into viable deals for both the bank and private investors.

APA

Uzsoki, D. (2018). Infrastructure Banks: Solutions and best practices. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/infrastructure-banks-solutions-best-practices.pdf

Chicago

Uzsoki, David. Infrastructure Banks: Solutions and best practices. International Institute for Sustainable Development, 2018. https://www.iisd.org/system/files/publications/infrastructure-banks-solutions-best-practices.pdf.

Wikipedia

{{cite report |last1=Uzsoki |first1=David |title=Infrastructure Banks: Solutions and best practices |publisher=International Institute for Sustainable Development |date=January 2018 |url=https://www.iisd.org/system/files/publications/infrastructure-banks-solutions-best-practices.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{uzsoki2018infrastructure, author = {Uzsoki, David}, title = {{Infrastructure Banks: Solutions and best practices}}, institution = {International Institute for Sustainable Development}, year = {2018}, month = jan, url = {https://www.iisd.org/system/files/publications/infrastructure-banks-solutions-best-practices.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }