Partnership for Global Infrastructure and Investment at the G7 Summit

Introduction

Fasano, Italy - At the 2024 G7 Summit, President Joe Biden and other G7 leaders reaffirmed their commitment to the Partnership for Global Infrastructure and Investment (PGI), aimed at accelerating sustainable infrastructure investment. This initiative, launched in 2022, seeks to mobilize $600 billion by 2027, with the U.S. targeting $200 billion.

Key Announcements and Investments

1. U.S. Contributions
   - Over $60 billion mobilized through federal financing, grants, and leveraged private sector investments.
   - Commitment to double last year's contributions, aiming for $200 billion by 2027.

2. Private Sector Engagement
   - Global Infrastructure Partners (GIP), BlackRock, and Brookfield to invest $4 billion in infrastructure projects.
   - The World Bank's new streamlined guarantee platform to support investments in PGI partner countries.

3. Regional Initiatives
   - Lobito Corridor: A flagship project in Africa, involving a 30-year rail concession and extensive support for agribusiness, digital infrastructure, and clean energy. The U.S. and partners mobilized $10 million for feasibility studies, with Italy committing $320 million.
   - Luzon Economic Corridor: The U.S., Japan, and the Philippines support connectivity projects between Subic Bay, Clark, Manila, and Batangas.

4. Clean Energy and E-mobility
   - $900 million finance agreement for solar farms in Angola.
   - U.S.-India Green Fund to facilitate $10 billion for e-bus deployment in India.

5. Digital and Agriculture Investments
   - Microsoft to invest $5 billion in digital infrastructure in Kenya, Indonesia, Malaysia, Thailand, and the Philippines.
   - U.S. commitments to expand agriculture training programs and food production in Africa and Asia.

6. Climate Finance and Renewable Energy
   - BlackRock’s Climate Finance Partnership (CFP) to invest in wind, solar, and renewable projects across Africa, Southeast Asia, and Latin America, totaling over $350 million in equity.

Milestones and Impact

Africa: The Lobito Corridor's rail and energy projects aim to boost regional connectivity and economic development.
Asia: Investments in digital connectivity and clean energy projects are set to enhance regional infrastructure and technological capacity.
Global: Partnerships with private investors and multilateral organizations are crucial to de-risk and drive sustainable investments in emerging markets.

Conclusion

The 2024 G7 Summit highlighted significant progress and new commitments under the PGI, emphasizing the collaboration between governments, private sectors, and international organizations to promote sustainable and transparent infrastructure investments globally.