According to Refinitiv, Sustainable Infrastructure Investments in India to Reach USD 148.67 Billion in 2022

Published on: 30 July 2022
by KnowESG
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The share of sustainable infrastructure investments in total project capital expenditures reached 20%, or 148.67 billion dollars, this year, up from 2.6%, or 19.5 billion dollars, in 2011.

According to data compiled by Refinitiv, a subsidiary of the London Stock Exchange Group, the country has received investments totalling USD 747.4 billion across 2,088 sustainable infrastructure projects between 2011 and now.

This represented only $19.5 billion across 27 projects or 2.61 per cent of the 2011 total. Cornelia Andersson, group head of sustainable finance and investment at the London Stock Exchange Group, said that the share remained in the single digits until 2020, at 6.76 per cent, or $50.5 billion across 157 projects.

In 2021, sustainable infrastructure investments saw a major boost as the number of projects and value of investments increased to USD 143.2 billion and 585 projects, respectively, representing 19.16 per cent of the total. She stated that in 2022 the number of investments increased to USD 148.67 billion over 637 projects.

The pandemic and climate change constituted the pivotal moments for sustainable infrastructure investment.

However, completion has lagged, with only 160 projects completed between 2011 and 2021, according to Refinitiv.

Globally and domestically, the majority of sustainable investments are pouring toward the renewable energy and nuclear sectors, which increased from USD 275 billion in 2020 to USD 627 billion in 2021.

The number of announced renewable and nuclear infrastructure projects increased from 1,365 in 2020 to 1,521 in 2021.

Solar projects are in the lead, with 863 new initiatives in FY22, followed by wind efforts with 442 new initiatives. However, supply shortages caused by the pandemic have hindered execution, and several large projects have been delayed, according to Refinitiv.

Only 47, or 3.5%, of the 1,13,465 solar and wind projects announced in 2020 are complete.

In 2021, the world's ten largest commercial banks will invest more than USD 35 billion in sustainable infrastructure projects, up from USD 29 billion in 2020.

Sumitomo Mitsui Banking Corporation (USD 6.1 billion) and Mitsubishi UFG Financial Group (USD 5 billion) were first and second for total deal financing in 2021, respectively, followed by Mizuho Financial Group (USD 4 billion), Santander (USD 3.8 billion), and Credit Agricole (USD 3.7 billion).

Source: News Drum

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