GLOBAL: CREST Guidelines - Promoting Climate Resilience in the Evaluation and Delivery of Upstream and Midstream Infrastructure Advisory

Climate change poses immense risks to infrastructure and sustainable development. But it also creates opportunities for innovation to build resilience and cut GHG emissions. As governments face fiscal constraints, PPPs are vital to mobilizing climate finance and technologies for low-carbon, climate-resilient infrastructure.

Recognizing this potential, PPIAF developed the Climate Toolkits for Infrastructure PPPs (CTIP3)—in collaboration with the GIF and IFC—to provide practical guidance on systematically integrating climate considerations across PPP project lifecycles.

The CTIP3 suite includes an Umbrella Toolkit, published in 2022, which establishes the overarching methodology. This is complemented by five sector-specific toolkits released in May 2023 covering hydropower, solar and wind power, road transportation, water production and treatment, and ICT.

The toolkits aim to address climate uncertainty and risk in PPPs. With proper structuring, PPPs can increase climate mitigation and resilience by leveraging private sector expertise in technologies and risk management. Well-defined, long-term contracts also provide stability against climate variability.

The sector-specific toolkits offer hands-on guidance for planning climate-smart PPPs. This includes assessing emissions and climate risks, balancing climate and affordability goals, allocating risks appropriately, translating climate decisions into technical specifications and contracts, tapping into climate finance, and evaluating climate credentials in procurement.

Practical resources like templates, checklists, and indicators facilitate the integration of climate considerations into bankable PPPs across critical sectors. The toolkits help translate national climate commitments into on-the-ground solutions by mainstreaming climate into infrastructure PPPs. They provide a bridge to urgently needed finance and skills for low-carbon, resilient development.

Initial results are promising. The Umbrella Toolkit was presented at major conferences such as COP27 and is being piloted in 16 countries. The sector-specific toolkits are also being piloted in several countries and will be widely disseminated, including at the upcoming COP28 in Dubai.

The CTIP3 suite equips policymakers and investors to confront complex climate challenges through sustainable infrastructure PPPs. The actionable resources empower practitioners to embed climate considerations at each step of PPP delivery. With growing urgency to act, these toolkits unleash the potential of PPPs to drive finance and technologies for the transition to a net-zero carbon and resilient future.