2023 CMS Infrastructure Index has been launched
CMS has just released its 2023 CMS Infrastructure Index, a study for global investors to understand the landscape they might face. It highlights potential advantages and opportunities that may lead to successful project implementation. Data from 50 jurisdictions has been analysed against nine key criteria to create a guide to the most attractive destinations for infrastructure investment.
Germany tops the rankings this year, as a result of the country’s investor-friendly creditworthiness, global competitiveness in advanced technologies, and sustainability efforts, including ambitious goals like reaching 80% renewable power by 2030.
Despite the ongoing war with Russia, Ukraine is also in the spotlight, as it remains focused on the expansion and reconstruction of its logistics infrastructure and energy sector. Ukraine needs substantial investments for reconstruction, and this creates numerous commercially attractive opportunities for investors, construction companies and other service providers to play an active role in rebuilding Ukraine projects. Additionally, Ukraine’s growing momentum towards integration with the EU opens doors for investors seeking access to the EU market.
Kristy Duane, Co-Head of the CMS Infrastructure & Projects Group, said:
“The 2023 CMS Infrastructure Index clearly lays out the challenges and opportunities facing the sector. As we approach COP28, we’re reminded that the transition to net zero is progressing, but not fast enough. Clean energy investment has grown by 24% according to the IEA, outpacing fossil fuels at 15%, but renewables still account for a small share of global energy. To speed up the transition, we must invest in new technologies and climate adaptation.”
Elena Aguilar, Co-Head of the CMS Infrastructure & Projects Group, said:
“The world is rapidly advancing in digital infrastructure and AI. These technologies are transforming industries and economies. We must, however, also address security concerns and bridge the digital divide between developed and developing nations. We look forward to seeing how the sector will harness the potential of the technology transformation while ensuring a secure and inclusive digital future.”
Jon Phillips, CEO of the Global Infrastructure Investor Alliance, said:
“In 2024, amidst global disruptions and challenges, as highlighted in this year’s Index, the urgency for trillions in investments to tackle net zero, digitalisation, and infrastructure issues has intensified, emphasising the need for collaborative efforts to overcome regulatory barriers and close the infrastructure investment gap.”
“The more we can avoid a wildly varying global patchwork of regulations and requirements around infrastructure investment, the more we can accelerate change.”
The global trends outlined in the CMS Infrastructure Index are:
- The transition to net zero is progressing slowly, despite increased clean energy investment, with renewables accounting for a small share of global energy consumption, and climate adaptation funding falling short of needs.
- A general shift away from globalisation towards protectionism has been driven in part by concerns about energy security. This is especially evident in recent, tougher rules around foreign ownership of sensitive or critical assets.
- The rapid expansion of digital platforms and the increasing demand for data storage and processing is driving significant investment in digital infrastructure, including data centres. However, there remains a digital divide, with many developing countries lacking adequate broadband connectivity. Bridging this gap would require substantial funding, potentially leading to further disparities as advanced economies adopt technologies like 5G.
- AI is becoming vital in infrastructure, offering benefits in various areas. However, there are concerns about its misuse for attacks on critical infrastructure, necessitating increased monitoring and protection amid global shocks and cyber threats. Defence against future threats tends to lose out when competing against more immediate demands for funding. But it is more important than ever that governments and other players should invest to maintain, upgrade and protect their key assets.
Read the full 2023 CMS Infrastructure Index here: CMS Infrastructure Index: Partnerships, policies and geopolitics
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