Recycling our Infrastructure for Future Generations

The report argues that asset recycling—the process of monetizing existing 'brownfield' infrastructure to reinvest in 'greenfield' projects—can unlock significant private capital, particularly from pension funds, without increasing public debt. It provides a framework for implementation, emphasizing the need for independent agencies, transparent trust funds, and community engagement to overcome public distrust of privatization. Using New South Wales, Australia, as a primary success story, the document outlines strategies for both developed and emerging markets to manage their infrastructure stock more efficiently.

• Global infrastructure needs are estimated to reach $100 trillion over the next 25 years, with a projected investment gap of $20 trillion during that period.
• Governments face severe fiscal constraints, with public debt exceeding 90% of GDP in several G20 nations, including Japan, Italy, the United States, Spain, France, and Canada.
• There is a mismatch between government needs and private investor appetite; investors prefer 'brownfield' (existing) and contracted infrastructure over 'greenfield' (new) projects, leading to $151 billion in uninvested 'dry powder' as of June 2017.
• Infrastructure asset recycling differs from simple privatization because it requires a two-step strategic process: monetizing an existing asset and directly reinvesting those proceeds into new infrastructure.
• To ensure transparency and public trust, the report recommends using an independent infrastructure agency and a separate trust fund to earmark proceeds specifically for new projects, preventing funds from being absorbed into general budgets or used solely for debt repayment.
• Public support for asset recycling is generally low due to lack of awareness, but increases significantly once the mechanism of divesting to reinvest is explained, contrasting with strong opposition to increased taxes or borrowing.
• In emerging markets, particularly in Asia, where a $6.1 trillion shortfall is expected by 2040, asset recycling can be supported by Multilateral Development Banks (MDBs) through the provision of 'liquidity pools' to mitigate greenfield project risks.
• The National Highways Authority of India (NHAI) is applying a sectoral asset recycling approach via the Toll Operate Transfer (TOT) model, aiming to monetize 75 operational highways to raise approximately $6 billion for new highway development.

APA

World Economic Forum (2017). Recycling our Infrastructure for Future Generations. http://www3.weforum.org/docs/WEF_Recycling_our_Infrastructure_for_Future_Generations_report_2017.pdf

Chicago

World Economic Forum. Recycling our Infrastructure for Future Generations. 2017. http://www3.weforum.org/docs/WEF_Recycling_our_Infrastructure_for_Future_Generations_report_2017.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Recycling our Infrastructure for Future Generations |date=2017 |url=http://www3.weforum.org/docs/WEF_Recycling_our_Infrastructure_for_Future_Generations_report_2017.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2017recycling, author = {{World Economic Forum}}, title = {{Recycling our Infrastructure for Future Generations}}, institution = {World Economic Forum}, year = {2017}, url = {http://www3.weforum.org/docs/WEF_Recycling_our_Infrastructure_for_Future_Generations_report_2017.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }