Infrastructure initiatives Good infrastructure: a basis for sustainable development

Under Germany’s Presidency, the G7 launched the Partnership for Global Infrastructure and Investment (PGII) at its Summit in Elmau in June 2022. The Partnership aims to reduce the huge investment gap for sustainable infrastructure in low- and middle-income countries. It intends to mobilise 600 billion US dollars in public and private funds for this purpose by 2027.

The USA is providing 200 billion dollars for the project, Japan has pledged 65 billion US dollars and the UK 40 billion pounds. The EU and its member states are contributing to the PGII via the“Global Gateway strategy” which aims to mobilise 300 billion euros for infrastructure projects by 2027.

All the projects implemented under the Global Gateway strategy thus contribute to the G7 Infrastructure Partnership (PGII).

Since the G7 Summit in Elmau, the G7 countries have invested in major infrastructure projects through the PGII. Particular support is being given to digital networks, the sustainable expansion of transport networks, clean energy and climate action, global health and reliable pharmaceutical supply chains, education and research.

The PGII aims to facilitate long-term country partnerships for sustainable infrastructure in specific sectors which will make effective, large-scale investments easier. Just Energy Transition Partnerships are an example of this.

All of the PGII’s projects meet high standards in terms of transparency, good governance, the climate and environment, social justice and financial and debt sustainability. The PGII is guided in this by the G20 Principles for Quality Infrastructure Investment (External link).

To help them to maintain these standards, the PGII supports public institutions in developing countries and emerging economies in improving the enabling environment for sustainable investment and implementing infrastructure projects in cooperation with the private sector, for example.

At the G7 Summit in Hiroshima on 20 May 2023, the G7 heads of state and government consulted on the current status of the initiative and their next steps, and published a list of 40 PGII flagship projects.

Here is a selection of PGII flagship projects in which Germany is directly involved:

At the request of the Moroccan government, preparations are currently underway for the construction of a reference plant for the production of green hydrogen in Morocco – the first of its kind in Africa. Germany and Morocco had already formed a hydrogen alliance to foster the entry into this technology of the future back in June 2020.

The project is aligned with the European and German hydrogen strategy and is made possible by Germany’s contribution of 100 million euros. These public funds are intended to encourage private investment and help establish a green hydrogen economy in Morocco. This Global Gateway project is part of the Africa-EU Green Energy Initiative.

The Surabaya region in the province of East Java is home to more than 10 million people, making it the second largest conurbation in Indonesia. The new regional railway is intended to improve the area’s local public transport and offer an attractive alternative to the use of private transport, which is increasing rapidly. The Surabaya Regional Railway Line (SRRL) project also aims to reduce greenhouse gas emissions, noise and air pollution in the area and, in doing so, contribute to Indonesia’s climate goals. The project is being implemented by the Indonesian Ministry of Transportation and is part of the joint Green Infrastructure Initiative between Indonesia and Germany.

The BMZ is contributing to the total costs of around 290 million euros with a loan of 230 million euros and a grant of six million euros.

Cities in developing countries and emerging economies are growing fast and face significant challenges when it comes to achieving climate neutrality. C40 Cities (External link) is a global network of mayors of major cities who are actively confronting the climate crisis.

The network provides a platform for them to discuss climate action plans and sustainable urban development projects. In 15 cities in India, Indonesia, Malaysia, Ghana, Senegal, Sierra Leone, South Africa, Brazil, Colombia and Peru, for example, the network is facilitating the development of green investment projects for implementing climate action plans, with the aim of mobilising private investment. The network is supported by Germany, the UK, France and the USA.

The Trans-Balkan Electricity Corridor links the electricity transmission systems of Serbia, Montenegro and Bosnia and Herzegovina with those of the EU countries of Croatia, Hungary, Romania and Italy. This transmission corridor is one of the most overloaded in south-east Europe.

In Western Serbia, a 400-kilovolt double circuit transmission line spanning 109 kilometres is currently being built between Obrenovac and Bajina Bašta, and preparations are being made for an 84-kilometre section between Montenegro and Bosnia and Herzegovina. The BMZ is supporting the expansion of the Trans-Balkan Electricity Corridor as part of a regional Team Europe Initiative within the Global Gateway strategy.

The Trans-Balkan Electricity Corridor links the electricity transmission systems of Serbia, Montenegro and Bosnia and Herzegovina with those of the EU countries of Croatia, Hungary, Romania and Italy. This transmission corridor is one of the most overloaded in south-east Europe.

In Western Serbia, a 400-kilovolt double circuit transmission line spanning 109 kilometres is currently being built between Obrenovac and Bajina Bašta, and preparations are being made for an 84-kilometre section between Montenegro and Bosnia and Herzegovina. The BMZ is supporting the expansion of the Trans-Balkan Electricity Corridor as part of a regional Team Europe Initiative within the Global Gateway strategy.