Investment

When we consider the flow of capital and what type of investment is needed to make a smart sustainable city we first might be reminded that the infrastructure finance market regularly finances all types of core infrastructure. The challenges of core plus infrastructure have also been overcome at scale.

However, where infrastructure asset classes are being combined or the technology involved is unproven, challenges remain. The more novel the structure, the less familiar the landscape. And, as trends are accelerating rapidly, so too is the smart agenda.

Another consideration for the flow of capital, is the essential requirement of working with public authorities who produce infrastructure of all types and are expected to produce more digital infrastructure in the future.

This is further nuanced by the individual needs per location. Wherever you are in the world these smart requirements will differ. Looking at the European context might call for fixed wireless demand and require a very different way of thinking about the investment.

The Middle East, where ‘mega’ and 'giga' cities are being developed the focus on ‘smart’ at considerable scale comes into play and where smart may be about the provision of services. These all lead to new types of finance and connect both public and private bodies to generate investment.

In essence, the future capital investment that is coming into the urban realm is more resilient, tech enabled and environmentally sustainable in the long term: from green finance through to smart buildings and giga infrastructure. Future investment will need to be integrated within the infrastructure plan in order to help make a city connected and sustainable.