Inter-American Development Bank
facebook
twitter
youtube
linkedin
instagram
Abierto al públicoBeyond BordersCaribbean Development TrendsCiudades SosteniblesEnergía para el FuturoEnfoque EducaciónFactor TrabajoGente SaludableGestión fiscalGobernarteIdeas MatterIdeas que CuentanIdeaçãoImpactoIndustrias CreativasLa Maleta AbiertaMoviliblogMás Allá de las FronterasNegocios SosteniblesPrimeros PasosPuntos sobre la iSeguridad CiudadanaSostenibilidadVolvamos a la fuente¿Y si hablamos de igualdad?Home
Citizen Security and Justice Creative Industries Development Effectiveness Early Childhood Development Education Energy Envirnment. Climate Change and Safeguards Fiscal policy and management Gender and Diversity Health Labor and pensions Open Knowledge Public management Science, Technology and Innovation  Trade and Regional Integration Urban Development and Housing Water and Sanitation
  • Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

Sostenibilidad

Just another web-blogs Sites site

  • HOME
  • CATEGORIES
    • Agriculture and Food Security
    • Climate change
    • Ecosystems and Biodiversity
    • Environmental and Social Safeguards
    • Infrastructure and Sustainable Landscapes
    • Institutionality
    • Responsible Production and Consumption
  • Authors
  • English
    • Español

Should Latin America care about Sustainable Infrastructure?

November 19, 2018 por Mariana Silva Zuñiga Leave a Comment


Infrastructure is the backbone for economic development, as our region gets more and more exposed to natural disasters and social conflict, and some of them to lower levels of investment and economic stagnation, we cannot help wondering if we are making the right infrastructure investment choices today. We are beginning to realize that sustainability is fundamental to the economic and financial viability of ANY infrastructure project. Sustainability does not make a project more expensive, it saves a lot of money thanks to resource efficiency and avoided costs during its lifecycle. Unpacking all of this “cause-effect” dimension is the work that we have been focusing on at the Inter-American Development Bank (IDB). A powerful recent evolution in thinking on this topic is that sustainability is not a cost, but it is an opportunity.  

Let me elaborate a bit further on what I mean by OPPORTUNITY, both at the project and macroeconomic levels:

  • At the macroeconomic level: when we first started thinking about sustainability, focusing specifically on the climate dimension, many finance ministers asked, “why are we doing this?” “is it not going to be costlier to us as an economy, if we make a project more sustainable? If we make our investment strategies focused on this sustainability dimensions?” And the answer to all those questions is NO. Sustainability presents an important opportunity for economies to shift to a better growth pathway. If we invest in sustainable infrastructure, we are producing the foundations of better- and high-quality economic growth. We are also laying the basis for economically dynamic, vibrant, and resilient cities where people can breathe clean air. Sustainable infrastructure will also help us preserve our ecosystems and natural resources. Sustainability, therefore, is not a cost but moreover an important opportunity for a better growth pathway.
  • At the project level: we are used to thinking about environmental, social, and corporate governance (ESG) standards as a way to make sure a project does not harm. After years of tracking ESG at the portfolio level, we have now realized that if you focus on sustainability at the project level, that project will end up producing much better outcomes. So, financiers now see the business case for well prepared sustainable projects.

To make the business case for this transition even more resoundingly imminent, we are being blessed with the tremendous power of innovation. The cost of putting sustainably out there has really made this opportunity even more attainable and affordable. We see falling costs in every sector, not only renewable and battery storage but also in production, the power of digital planning, and 3D printing. Innovating will bring competitive advantage to our region; showing us better pathways for protecting valuable natural resources and improving land use. These two being powerful resources of better inclusive sustainable growth. Those countries that get on the innovation and sustainability wagon will do better than those countries that stick to the old ways of planning and delivering fossil fuel-based infrastructure.

Having said that, I am aware the road ahead is still long, too much infrastructure is still built on the old ways and we are building too little of sustainable infrastructure AT SCALE.

If we look at Latin America right now, investment levels of public infrastructure (transportation, energy, water, health, and education)  are roughly only about a third of investment in Asia, however, because our region has this big catch up to do there is a tremendous opportunity to do it right, to plan, prioritize, design, build better projects, and leapfrog and gain competitive edge. Taking advantage of all the already proven sustainable business models out there will help Latin America thrive.

Latin American countries can really achieve this change and shift to a better economic pathway for the future by focusing on the important role of policy and institutional foundations to build infrastructure. If we start focusing on the quality and sustainability elements of infrastructure projects at the time of building a project, it is already too late. We need to design clear strategies and plan ahead of time. Those countries that have done best, are the ones with long-term strategic thinking about growth and infrastructure, so it is very important for each Latin American country to have a sustainability forward-looking thinking and reflect that into their national infrastructure plans and national investment plans.

So, I asked myself again, should Latin America care about sustainable infrastructure? And the answer is a firm and loud YES!  We firmly believe innovation plus sustainability is the competitive advantage agenda in the 21st century. The first countries to implement this will be more resilient and more economically powerful since they will have effective natural resources management systems (water and energy), and they will deliver better jobs and opportunities for their citizens.

At the IDB we are committed to supporting Latin American with this transition, ultimately improving people lives in our region. For that, we are no longer focusing on why but more on how?  How do we do it?  We are developing sustainable project preparation tools, resilience tools and mapping global and local policies which will help us achieve this shift. The good news is that there is already tremendous work done in every single of our member countries and hence the reason why the IDB is organizing a Regional Sustainable Infrastructure Conference in Lima, Peru on November 20th and 21st, to share concrete measures of how to incorporate elements of sustainability in (1) the institutional context (2) planning processes, and (3) design and procuring of projects.

The conference is open to the public and free of charge. Join our effort to shift Latin America to a sustainable growth pathway!  

 


Filed Under: Infrastructure and Sustainable Landscapes

Mariana Silva Zuñiga

Mariana tiene amplia experiencia en planeación y financiamiento de infraestructura sostenible con énfasis en financiamiento de proyectos, debida diligencia de inversión y asociaciones público-privadas (APPs). Ha trabajado con varios gobiernos en creación de políticas para mejorar el crecimiento económico, la justicia social y el manejo de recursos naturales. Mariana tiene una maestría en banca internacional y finanzas de la Universidad Hong Kong Lingnan. Ha estudiado y trabajado en diferentes regiones del munco para ganar una perspectiva internacional. Mexicana, ha vivido en Suiza, Alemania, Reino Unido, Hong Kong y Estados Unidos.

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Follow Us

Subscribe

SEARCH

Sustainability

This blog is a space to reflect about the challenges, opportunities and the progress made by Latin American and Caribbean countries on the path towards the region’s sustainable development.

SIMILAR POSTS

  • Sustainable Infrastructure: From Concept to Implementation in Latin America
  • 3 Key Questions about Sustainable Infrastructure
  • Sustainable infrastructure and quality infrastructure are two sides of the same coin
  • More than 230 Million Reasons to Invest in Sustainable Infrastructure
  • The Caribbean can make waves with a blue ocean economy

Footer

Banco Interamericano de Desarrollo
facebook
twitter
youtube
youtube
youtube

    Blog posts written by Bank employees:

    Copyright © Inter-American Development Bank ("IDB"). This work is licensed under a Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives. (CC-IGO 3.0 BY-NC-ND) license and may be reproduced with attribution to the IDB and for any non-commercial purpose. No derivative work is allowed. Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC- IGO license. Note that link provided above includes additional terms and conditions of the license.


    For blogs written by external parties:

    For questions concerning copyright for authors that are not IADB employees please complete the contact form for this blog.

    The opinions expressed in this blog are those of the authors and do not necessarily reflect the views of the IDB, its Board of Directors, or the countries they represent.

    Attribution: in addition to giving attribution to the respective author and copyright owner, as appropriate, we would appreciate if you could include a link that remits back the IDB Blogs website.



    Privacy Policy

    Derechos de autor © 2025 · Magazine Pro en Genesis Framework · WordPress · Log in

    Banco Interamericano de Desarrollo

    Aviso Legal

    Las opiniones expresadas en estos blogs son las de los autores y no necesariamente reflejan las opiniones del Banco Interamericano de Desarrollo, sus directivas, la Asamblea de Gobernadores o sus países miembros.

    facebook
    twitter
    youtube
    This site uses cookies to optimize functionality and give you the best possible experience. If you continue to navigate this website beyond this page, cookies will be placed on your browser.
    To learn more about cookies, click here
    x
    Manage consent

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
    Non-necessary
    Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
    SAVE & ACCEPT