Delivering on the Sustainable Development Goals through long-term infrastructure planning

Through the provision of a range of essential services, infrastructure systems profoundly influence development. At a time of increasing global investment in infrastructure, there is a need to support practitioners in making informed choices in order to achieve progress toward sustainable development objectives. Using the 2030 Agenda for Sustainable Development (the SDGs) as a framework to structure infrastructure decision-making and trade-offs, this analysis develops a performance indicator system that assesses the potential development implications of a portfolio of infrastructure investments and policies. We develop metrics to assess the performance of infrastructure-linked targets. We then embed these metrics in a systems model that allows for the quantification of future infrastructure needs and the assessment of portfolios of infrastructure investments and policies that contribute to meeting these needs. These methods are applied to the small-island country of Curaçao, demonstrating the potential for meeting the SDGs through adoption of strategies of cross-sectoral infrastructure investments and policies in the energy, water, wastewater and solid waste sectors. In the face of growing demands for infrastructure services, we find that inaction with regard to infrastructure supply and demand will lead to a 28% decrease in average SDG achievement across these targets by 2030. We assemble a portfolio of interventions that provide infrastructure services across these four sectors that enable achievement of 19 SDG targets directly linked to infrastructure. These interventions imply scaling up of infrastructure where there are gaps in service provision, ranging from an overall 10% increase in the water sector to a 368% increase in waste sector infrastructure from current capacities by 2030. Achieving the SDGs does not necessarily imply more infrastructure: in the energy sector the sustainable policy implies demand reductions of 32% from current levels. Nearly 50% of the assessed targets require intervention in more than one sector, emphasising the interdependent nature of the infrastructure system. The analysis addresses future uncertainties around the key drivers of residential population and tourism growth on the island by modelling infrastructure needs for alternate scenario projections. Averaged across the four sectors, these needs range from −14% (low) to +5% (high) in relation to the moderate projection. The analysis provides the first step towards a practical means of utilising infrastructure to deliver the SDGs, using quantitative indicators to underpin effective decision-making.     

Intra-seasonal rainfall and piped water revenue variability in rural Africa

Rainfall patterns influence water usage and revenue from user payments in rural Africa. We explore these dynamics by examining monthly rainfall against 4,888 records of rural piped water revenue in Ghana, Rwanda, and Uganda and quantifying revenue changes over 635 transitions between dry and wet seasons.Results show operators experience revenue variability at regional and intra-seasonal scales. Revenues fall by an average of 30 percent during the wettest months of the year in climate regimes with consistent wet season rainfall. However, seasonally stable revenues are observed in areas where consecutive dry days are common during the wet season, potentially reflecting a dependency on reliable services. We also find changes in tariff level, waterpoint connection type, and payment approach do not consistently prevent or increase seasonal revenue variability.Local revenue generation underpins delivery of drinking water services. Where rainfall patterns remain consistent, piped water operators can expect to encounter seasonal revenue reductions regardless of whether services are provided on or off premises and of how services are paid for. Revenue projections that assume consistent volumetric demand year-round may lead to shortfalls that threaten sustainability and undermine the case for future investment. Intra-seasonal rainfall analysis can enhance rural piped water revenue planning by offering localised insight into demand dynamics and revealing where climate variability may increase dependency on reliable services.     

Not a panacea: private-sector engagement in adaptation and adaptation finance in developing countries

The role of the private sector in climate finance is increasingly emphasized in international political debates. Knowledge of private engagement in mitigating climate change and in more advanced economies is growing, but the evidence base for private-sector engagement in climate change adaptation in developing countries remains weak. Starting from the premise that the private sector's role in adaptation is often inevitable and potentially significant, this article first analyses the potential of private-sector engagement in adaptation and adaptation financing in developing countries by conceptualizing the private sector's roles and motivation therein. For further inquiry, and for a discussion based on a developing-country context, interviews were conducted with key stakeholders for adaptation of Zambia's agricultural sector, including on ways in which the government can incentivize private-sector engagement in adaptation.

How much private-sector adaptation and adaptation finance can be identified depends on the interpretation of the concept of adaptation. Under a broad interpretation, the domestic private sector in particular can contribute substantially to adaptation, both directly and indirectly, through its investments and activities. However, the international private sector's role in financing adaptation should be analysed under a strict interpretation of adaptation and appears limited.

Policy relevance

International political debates increasingly stress the importance of private climate finance, yet are constrained by vagueness around the private sector's role in adaptation finance. This article conceptualizes and scrutinizes private-sector engagement in adaptation and adaptation finance in developing countries. It concludes that the domestic private sector in particular can contribute substantially to adaptation in direct and indirect ways, and that domestic policies incentivize such contributions. However, international private financing of adaptation is more limited and its analysis requires a stricter interpretation of adaptation. Private-sector engagement in adaptation and adaptation finance can supplement, but not substitute for, public investments in adaptation. These limitations are particularly important when discussing private adaptation finance as part of the developed countries' pledge to mobilize US$100 billion of climate finance per annum from 2020 onwards.     

Incorporating resilience into sustainability indicators: An example for the urban water sector

The development and use of indicators is common practice in efforts to promote urban sustainability. Indicators used to measure urban sustainability tend to focus narrowly on describing the current state of the urban system. Although a time series analysis using these indicators may lend insights into trends towards or away from certain ‘sustainability’ goals, existing indicators of urban sustainability do not provide information on the ability or the likelihood that the current system state can be maintained or improved over time. Indicators that incorporate a measure of system resilience would provide useful information on system sustainability. Through development of a new indicator, Water Provision Resilience (WPR), we provide an example of how measures of resilience could be incorporated into sustainability indicators. The new indicator adds six color codings to the existing indicator ‘percent of the population with access to safe water.’ Each color coding represents a measure of the ability of the water system to maintain or improve the current percent of the population with access to safe water in key areas of the water provision sector: supply, infrastructure, service provision, finances, water quality and governance. The metric is then applied to three cities. The goal in developing this metric is to provide a starting point for re-thinking the metrics used to measure progress and sustainability in order to incorporate the ability to absorb and adapt to stresses into sustainability analysis.     

Social capital,trust, and adaptation to climate change: Evidence from rural Ethiopia

Climate change is expected to have particularly severe effects on poor agrarian populations. Rural households in developing countries adapt to the risks and impacts of climate change both individually and collectively. Empirical research has shown that access to capital—financial, human, physical, and social—is critical for building resilience and fostering adaptation to environmental stresses. Little attention, however, has been paid to how social capital generally might facilitate adaptation through trust and cooperation, particularly among rural households and communities. This paper addresses the question of how social capital affects adaptation to climate change by rural households by focusing on the relationship of household and collective adaptation behaviors. A mixed-methods approach allows us to better account for the complexity of social institutions—at the household, community, and government levels—which drive climate adaptation outcomes. We use data from interviews, household surveys, and field experiments conducted in 20 communities with 400 households in the Rift Valley of Ethiopia. Our results suggest that qualitative measures of trust predict contributions to public goods, a result that is consistent with the theorized role of social capital in collective action. Yet qualitative trust is negatively related to private household-level adaptation behaviors, which raises the possibility that social capital may, paradoxically, be detrimental to private adaptation. Policymakers should account for the potential difference in public and private adaptation behaviors in relation to trust and social capital when designing interventions for climate adaptation.     

Rivers as municipal infrastructure: Demand for environmental services in informal settlements along an Indonesian river

In many developing world cities, where municipal infrastructure lags urban growth, lower-income communities may compensate by relying on local waterways to meet basic needs for water, sanitation, and recreational space. Access to these environmental services is possible because residents settle in floodplains, but thus entails elevated exposure to several water-related hazards, especially flooding. We examine this complex relationship in the neighborhoods of Bukit Duri and Kampung Melayu on the Ciliwung River in Jakarta, Indonesia. Based on a spatially referenced household survey, we analyze and map the patterns of use of six environmental services provided by the river: direct sanitary use, recreation, harvesting plants, groundwater use, solid waste disposal, and sewage disposal. Using spatial interpolation and regression methods, we identify the most probable areas where services are being used and analyze possible influences on this behavior. We find that proximity to the river significantly influences households’ behavior toward the river, as do infrastructure-related variables and neighborhing households’ behavior, while household demographic factors appear less significant. These results indicate that many households rely on multiple environmental services, and that residents most reliant on these services are also at greater risk of water-related hazards, service disruption (e.g., a decline in water quality), and potentially, eviction. This pattern of floodplain development is prevalent in many low-income countries, and a better understanding of how informal settlements rely on environmental services can be used to assess their vulnerabilities and inform more sustainable courses of development.     

Using panel data to estimate the effect of rainfall shocks on smallholders food security and vulnerability in rural Ethiopia

Ethiopia??s agriculture is predominantly rainfed and hence any irregularity in weather conditions has adverse welfare implications. Using panel data, this paper analyzes the effect of rainfall shocks on Ethiopian rural households?? food security and vulnerability over time while controlling for a range of other factors. To this end, we generate a time-variant household food security index which is developed by principal components analysis. Based on this index, households are classified into relative food security groups and their socioeconomic differences are assessed. The exploratory results show that compared to the less secured households, the more secured ones have male and literate household heads, tend to have a greater number of economically active household members, own more livestock, experience better rainfall outcome, and participate in local savings groups. Using the food security index as the dependent variable, we use a fixed effects instrumental variable regression model to identify determinants of households?? food security over time and find that rainfall variability is an important factor. Moreover, household size, participation in local savings groups, and livestock ownership positively affect food security. Results from multinomial logistic regression model complement the fixed effects instrumental variable regression results by showing that the level and variability of rainfall are important determinants of persistent food insecurity and vulnerability. The results highlight the need for efficient risk reduction and mitigation programs to improve risk exposure and coping ability of rural households. Careful promotion of investment in infrastructure to support irrigation and water resources development is one aspect worth considering.     

Quantifying urban water supply security under global change

Urban water supply security is commonly measured in terms of per capita water availability at the city level. However, the actual services that citizens receive are influenced by several components, including (1) a city's access to water, (2) infrastructure for its treatment, storage and distribution, (3) financial capital for building and maintaining infrastructure, and (4) management efficacy for regulating and operating the water system. These four types of "capital" are required for the provision of public water supply services. A fifth capital “community adaptation” is needed when public services are insufficient. Here, we develop and test an integrated framework for the quantification of urban water supply security based on these five capitals. “Security” involves three dimensions: 1) the level of system function (i.e., supply services); 2) risks to these services; and 3) robustness of system functioning. We apply this Capital Portfolio Approach (CPA) to seven urban case studies selected from a wide range of hydro-climatic and socio-economic regions on four continents. Detailed data on urban water infrastructure and services were collected in two cities, and key stakeholder interviews and household surveys were conducted in one city. Additional cities were assessed based on publicly available utility and globally available datasets. We find that in cities with high levels of public services, adaptive capacity remains inactive, while cities with high levels of water insecurity rely on community adaptation for self-provision of services. Inequality in the capacity to adapt leads to variable levels of urban water security and the vulnerability of the urban poor. Results demonstrate the applicability of the presented framework for the assessment of individual urban water systems, as well as for cross-city comparison of any type of cities. We discuss implications for policy and decision-making.     

Encouraging clean energy investment in developing countries: what role for aid?

A large portion of foreign assistance for climate change mitigation in developing countries is directed to clean energy facilities. To support international mitigation goals, however, donors must make investments that have effects beyond individual facilities. They must reduce barriers to private-sector investment by generating information for developers, improving relevant infrastructure, or changing policies. We examine whether donor agencies target financing for commercial-scale wind and solar facilities to countries where private investment in clean energy is limited and whether donor investments lead to more private investments. On average, we find no positive evidence for these patterns of targeting and impact. Coupled with model results that show feed-in tariffs increase private investment, we argue that donor agencies should reallocate resources to improve policies that promote private investment in developing countries, rather than finance individual clean energy facilities.

Policy relevance

We suggest that international negotiations could usefully shift the focus of climate change finance towards adaptation in exchange for mitigation-improving policy reforms in developing countries. There is little evidence that mitigation-related financing is having broader effects on energy production, so new financial arrangements should be the focus of future negotiations. Additionally, international donors should focus efforts on reforming policies to attract private investment.     

The impact of urbanization on water vulnerability: A coupled human–environment system approach for Chennai,India

While there is consensus that urbanization is one of the major trends of the 21^st century in developing countries, there is debate as to whether urbanization will increase or decrease vulnerability to droughts. Here we examine the relationship between urbanization and water vulnerability for a fast-growing city, Chennai, India, using a coupled human–environment systems (CHES) modeling approach. Although the link between urbanization and water vulnerability is highly site-specific, our results show some generalizable factors exist. First, the urban transformation of the water system is decentralized as irrigation wells are converted to domestic wells by private individuals, and not by the municipal authority. Second, urban vulnerability to water shortages depends on a combination of several factors: the formal water infrastructure, the rate and spatial pattern of land use change, adaptation by households and the characteristics of the ground and surface water system. Third, vulnerability is dynamic, spatially variable and scale dependent. Even as household investments in private wells make individual households less vulnerable, over time and cumulatively, they make the entire region more vulnerable. Taken together, the results suggest that in order to reduce vulnerability to water shortages, there is a need for new forms of urban governance and planning institutions that are capable of managing both centralized actions by utilities and decentralized actions by millions of households.     

Private equity,public affair: Hydropower financing in the Mekong Basin

Large-scale hydropower development is increasingly popular. Although international finance is a significant driver of hydropower market expansion, financial data is relatively obscure and literature remains scarce. This article tracks the financial process in hydropower development in the Mekong River Basin. It shows a shift in influence from traditional public international financial institutions to a diverse mix of private actors, who are enticed with attractive terms of trade and complete decision making power over water resource management. Traditional players have now taken on a more facilitating and regulatory role by providing guarantees and mitigating social and environmental impacts partly releasing the new global and regional private actors from these responsibilities. Because hydropower financing involves opaque processes and confidential documents public accountability is severely limited. While the private sector benefits from relatively short term returns, the public sector is left responsible for long term impacts.     

Chinese and multilateral development finance in the power sector

Public developmental institutions are pivotal in shaping the contours of the electricity sector of the developing world and its associated greenhouse gas emissions pathways. However, we have a fragmented and incomplete picture of the evolution of their investments over time and space. This is particularly the case for the recent rise of various Chinese Developmental Institutions (CDIs) for which infrastructure investment estimates range in the trillions under China’s Belt and Road Initiative (BRI) and for which data is mostly not publicly disclosed. We address this gap in two ways: first, we compile and analyze a novel dataset that draws on commercial data tracking, publicly available datasets, and more than 1,000 supporting documents to match financial transactions by the main CDIs and traditional Multilateral Development Banks (MDBs) to power plant projects worldwide. This allows us to conduct a quantitative, comparative analysis of the role of CDIs and MDBs to understand the relative size, technology, and country focus of such investments in the period 1999–2020. Second, we complement the quantitative dataset with 39 expert interviews to shed light on the drivers behind the Chinese investments, with a particular focus on coal projects. The analysis shows that CDIs have rapidly emerged as the largest public finance provider for the electricity sector in the developing world. We also find that, in contrast with the increasingly green BRI rhetoric, the technology portfolio of CDI investments in power plants is still heavily dominated by coal plants. Over time, however, CDIs have increasingly supported more efficient coal plants and increased the share of their portfolio supporting non-hydro renewables and supported a growing number of projects jointly with MDBs. Steering China’s bilateral coal finance flows through international efforts into a more sustainable direction to meet climate goals will require careful consideration of a set of drivers and enablers of the involvement of CDIs and recipient countries in coal projects, which we discuss, as well as of the role of other finance providers, including traditional MDBs.     

Impacts of land use intensification on human wellbeing: Evidence from rural Mozambique

Intensifying land use is often seen as a corollary of improving rural livelihoods in developing countries. However, land use intensification (LUI) frequently has unintended impacts on ecosystem services (ES), which may undermine the livelihoods of the same people who could benefit from intensification. Poorer households are disproportionately dependent on ES, so inequalities may also rise. A disaggregated analysis of LUI is thus fundamental to better understand how LUI can progress in an equitable manner. Using a suite of multi-scale, multidisciplinary social-ecological methods and operationalising multidimensional concepts of land use intensity and wellbeing, we examine three case studies in rural Mozambique. Drawing on interviews, focus group discussions, 1576 household surveys and geospatial data from 27 Mozambican villages, we assess how wellbeing and inequality change with three common LUI pathways: transitions to smallholder commercial crop production, charcoal production, and subsistence expansion. Wellbeing improved with intensification of smallholder commercial and subsistence agriculture, inequality did not change. Unsustainable intensification of charcoal production showed no overall effect on either wellbeing or inequality. Improvements in wellbeing amongst the poorest households were only found with intensification of commercial crop production, where villages had better access to markets. Our findings suggest that socioeconomic benefits from agricultural intensification and expansion may overcome localised environmental trade-offs, at least in the short term. However, unsustainable charcoal resource management and limited productive investment opportunities for rural households resulted in both reduced market access and limited wellbeing improvements. Sustainable and inclusive markets are therefore crucial developments alongside LUI to sustain wellbeing improvements for all households, to ensure that no one is left behind.     

Water conservancy projects in China: Achievements,challenges and way forward

China's water policies in the past decades have relied heavily on the construction of massive water conservancy projects in the form of dams and reservoirs, water transfer projects, and irrigation infrastructure. These facilities have brought tremendous economic and social benefits but also posed many adverse impacts on the eco-environment and society. With the intensification of water scarcity, China's future water conservancy development is facing tremendous challenge of supporting the continuous economic development while protecting the water resources and the dependent ecosystems. This paper provides an overview of China's water conservancy development, and illustrates the socioeconomic, environmental and ecological impacts. A narrative of attitude changes of the central government towards water conservancy, as well as key measures since the 1950s is presented. The strategic water resources management plan set by the central government in its Document No. 1 of 2011 is elaborated with focus on the three stringent controlling “redlines” concerning national water use, water use efficiency and water pollution and the huge investments poised to finance their implementation. We emphasize that realizing the goals set in the strategic plan requires paradigm shifts of the water conservancy development towards maximizing economic and natural capitals, prioritizing investment to preserve intact ecosystems and to restore degraded ecosystems, adapting climate change, balancing construction of new water projects and rejuvenation of existing projects, and managing both “blue” (surface/groundwater) and “green” water (soil water).     

Shared injustice,splintered solidarity: Water governance across urban-rural divides

In response to rapid urbanization and intensifying climatological instability, cities are implementing major water infrastructure projects to mitigate water supply and flood risks. Drawing on four cases from South and Southeast Asia, we show how megacities’ search for additional water supplies or sites to store floodwater repeatedly disadvantage the most vulnerable groups in rural and urban areas. Rather than rehashing urban–rural conflicts, we argue these outcomes demonstrate the continuous reproduction of water insecurity for a class of society that is dispossessed of water and rural livelihoods, excluded from water and land access within the cities they migrate to, and evicted from flood-securitized cities back to the periphery. Water-related injustices confronting the urban poor mirror injustices along the entire water governance spectrum that begins and ends in rural areas. These shared vulnerabilities suggest opportunities for solidarity across urban–rural divides and novel directions for research and coalition building. A fundamental challenge ahead will be whether and how urban and rural poor groups can build regional or national alliances across geographic and identity divides.     

Asian Development Bank's support for clean energy

The Asian Development Bank's (ADB) support for the development of the clean energy sector in Asia and the Pacific is examined, together with its implications for mitigating climate change. A key question is whether financing has shifted from fossil fuel projects to renewable energy and energy efficiency in the past decade (2000–2009). Financial data from the ADB – a multilateral source of significant financing in the region – are assessed, and 127 technology-deploying projects and 199 technical assistance projects are evaluated. The assessment suggests that clean energy assistance has gained momentum during the last few years, peaking in 2008, implying a considerable shift in energy investments from conventional fossil-fuel projects to clean energy. Although private sector involvement has been central to the ADB's investment policy, only 30% of funding has been channelled into this sector over the past decade. The reporting of clean energy investments has also progressed within the ADB by including renewable and energy efficiency components in conventional energy projects and other investments, which was not previously accounted for. Nevertheless, the ADB needs to address several challenges in the future, including sustaining funding for clean energy, strengthening private sector investments and improving financial reporting.     

Finance for fossils – The role of public financing in expanding petrochemicals

The petrochemicals industry (mainly plastics and fertilizer production) is expanding, despite increasing attention to the environmental impact of petrochemicals. In our paper, we explore the role public finance plays in the petrochemicals industry. We do so by mapping the public and private financial flows into large-scale petrochemical projects for the decade 2010–20 and discuss the role of public financial institutions for the development of the industry globally. Secondly, we provide a detailed analysis of the roles international and national public finance has played in enabling two prominent petrochemical projects: namely the Sadara plant in Saudi Arabia and the Surgil plant in Uzbekistan. The cases are illustrative of the dynamics of state interest and involvement in fossil fuel producing countries as well as of lending and guarantees from foreign export credit agencies (ECAs) and development finance institutions, and how such public finance plays an important role in leveraging private finance. Our findings show how public finance for petrochemicals is highly globalized and to a large degree originates in developed countries. As petrochemical industrial infrastructures are designed to last decades, the public finance thus strongly contributes to the carbon lock-in of the sector and limits the possibilities for low-carbon investments needed to comply with the UN Paris Agreement.     

Climate change, adaptation and economic growth

This paper explores the links between economic growth and the impacts of climate change. Inclusive, pro-poor growth is central to the development of low-income countries. There is also a broad consensus that growth and development are important to reduce vulnerability to climate change. Growth does not automatically reduce vulnerability, only the right kind of growth does. The paper aims to develop a better understanding of what the ??right kind of growth?? may be. We find that many growth policies, such as investment in skills and access to finance, indeed reduce vulnerability to climate change. However, climate change calls for some adjustments in growth policy. In particular, investment in infrastructure and efforts to stimulate entrepreneurship and competitive markets must take more of a risk management perspective and recognise climate risks.     

Can agriculture support climate change adaptation, greenhouse gas mitigation and rural livelihoods? insights from Kenya

Changes in the agriculture sector are essential to mitigate and adapt to climate change, meet growing food demands, and improve the livelihoods of poor smallholder producers. What agricultural strategies are needed to meet these challenges? To what extent are there synergies among these strategies? This paper examines these issues for smallholder producers in Kenya across several agroecological zones. Several practices emerge as triple wins, supporting climate adaptation, greenhouse gas mitigation, and profitability goals. In particular, integrated soil fertility management and improved livestock feeding are shown to provide multiple benefits across all agroecological zones examined. Triple wins of other agricultural practices are limited to specific agroecological zones. Irrigation and soil and water conservation, for example, are essential for adaptation, mitigation, and profitability in arid areas. The results suggest that agricultural investments targeted toward these triple-win strategies will have the greatest payoff in terms of increased resilience of farm and pastoralist households and global climate change mitigation. To reap the benefits of triple-win strategies will require that policymakers, researchers, and practitioners move away from isolated approaches focused on either adaptation or mitigation or rural income generation toward a more holistic assessment of joint strategies as well as their tradeoffs and synergies.     

Household and community responses to impacts of climate change in the rural hills of Nepal

The research was designed to answer how households and local communities in rural Nepal are responding to the impacts of climate change. Using four villages as case study units, a mixed method approach was adopted in a multi-scaled process carried out at community, district and national levels. The research found that adaptation practices being adopted differ according to household well-being and are largely governed by access to education, information and resources within the community. Responses such as livelihood and income diversification, internal migration, share cropping, taking consumption loans, use of alternative energy and use of bio-pesticides were found to mostly vary according to well-being status of the interviewees. Development of adaptation plans, strategies and support mechanisms should take account of the different adaptation practices and needs of households. If such individual situations are not considered, adaptation responses may be ineffective or even be maladaptive and increase vulnerability. The research also found that the autonomous, unplanned and reactive nature of adaptation practices chosen by rural communities can contribute to further inequity and unequal power relations. The knowledge generated from this research contributes to understanding of how climate change contributes to vulnerability, but also how local practices and lack of an effective climate policy or response measures may magnify the effects of many existing drivers of vulnerability in terms of maladaptation and increasing social inequalities.