Three steps toward green Belt and Road

The China-proposed Belt and Road Initiative will likely be the most significant development in global finance in the coming decade, as it promotes investment of trillions of dollars in infrastructure across Asia, Europe and Africa. This region includes low-income countries, as well as fast-growing economies, including Indonesia, India, Vietnam and Pakistan.

The fundamental question is whether this infrastructure will be sustainable? As the Global Commission on Economy and Climate recently noted, infrastructure underpins core economic activity and is a foundation for achieving inclusive and sustainable growth. It is indispensable for reducing poverty, as it enhances access to basic services, healthcare, education and work opportunities, and can boost human capital and quality of life.

It also has a profound impact on addressing climate change, with the existing stock and use of infrastructure associated with more than 60 percent of global greenhouse gas emissions. The direction of Belt and Road investment is therefore exceedingly important, as choices made today will lock in either a climate-smart, inclusive-growth pathway or a high-carbon, inefficient and unsustainable pathway.