Infrastructure Banks: Solutions and best practices

This research paper by the International Institute for Sustainable Development (IISD) examines the role of infrastructure banks in closing the global infrastructure financing gap. It analyzes best practices from various international institutions and provides eight strategic recommendations for countries establishing their own infrastructure banks to mobilize private capital and promote sustainable development.

• Global infrastructure investment needs are estimated at USD 90 trillion by 2030, with current annual spending covering only about half of the required USD 6 trillion.
• Infrastructure banks can leverage government backing to achieve high credit ratings, allowing them to borrow cheaply from capital markets and mobilize private capital several times their own funds.
• The European Investment Bank (EIB) utilizes innovative tools such as Framework Loans to fund multiple projects (typically EUR 1 million to EUR 50 million each) within a single program exceeding EUR 100 million, and the ELENA program to provide grants covering up to 90% of technical assistance costs.
• IISD recommends that infrastructure banks prioritize 'additionality' by investing only in projects that would not otherwise attract financing on similar terms, thereby avoiding the crowding out of private sector investors.
• To ensure long-term financial sustainability, infrastructure banks should only finance projects that are financially viable, though these do not necessarily need to be revenue-generating if they can rely on availability-based payments.
• Infrastructure banks should act as champions for sustainable infrastructure, using their influence to mandate stringent environmental standards, which is critical given that infrastructure accounts for 60% of carbon dioxide emissions.
• IISD suggests that banks should provide project preparation and technical assistance to fill capacity gaps, which helps create a pipeline of bankable deals and encourages private investor engagement.

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} }