Emerging trends in infrastructure 2024Enabling transitions All at one time, we want to change our energy mix, our climate, our economies, our global trade patterns, our cities, our technology and our social equity. And we plan to do it all against a backdrop of a non-stationary environment, divisive geopolitical rhetoric and deep economic uncertainty. It is a mammoth task. Humanity’s success or failure will largely rest on the shoulders of our infrastructure. Infrastructure will be central to the energy transition and achieving our climate adaptation goals. It catalyzes economic growth and facilitates trade. It underpins urban renewal, lays the foundations for digital transformation and — when done well — can help embed social equity. It underpins urban renewal, lays the foundations for digital transformation and — done well — can help embed social equity. To achieve this we need to change (and improve) the way we plan, fund, develop and operate our infrastructure. It will require collaboration, new funding mechanisms, innovative regulatory regimes, new construction techniques, broader skill sets and — more than anything — a high degree of flexibility and creativity. Enabling the world’s transitions, therefore, must start with a transition in the infrastructure sector. This summary of KPMG’s 2024 Emerging Trends in Infrastructure highlights ten trends that KPMG professionals believe will shape the world of infrastructure in 2024. To learn more about the trends and topics raised in this report, we encourage you to contact your local KPMG member firm. © 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.Trend 1: A broader focus for the Just TransitionTo date, much of the conversation around the ‘just transition’ has been focused on jobs. Yet the bigger challenge will be in ensuring that investment, development and sustainability outcomes are spread equitably between developed and emerging markets. Over the coming year, expect to see some governments and international organizations start to broaden the definition of ‘just transition’ and, with it, encourage greater collaboration between nations, sectors and citizens. With collaboration, partnership and trust in short supply and geo-political and economic head winds dominating the headlines, the actual and perceived risks to businesses have grown multi-fold. This year, expect to see infrastructure players and investors focus on finding ways to measure, manage and mitigate the risk of uncertainty. KPMG is cautiously optimistic about the triumph of economics and good policies over protectionism and divisive short-term strategies. Trend 2: A turn in geopolitics
