As climate-related risks intensify and infrastructure demands grow, attention is increasingly turning to the role infrastructure can play in strengthening the resilience of economies and communities.
In this discussion we explore:
- How resilience infrastructure differs from resilient infrastructure
- Why resilience is becoming a key investment consideration
- Opportunities and challenges in emerging market infrastructure investment
- How blended finance can unlock institutional capital
- The future of resilience-focused infrastructure investing
In this interview, our partner Heike Schmitz speaks with Mostafa Ziaee about the growing role of resilient infrastructure, the barriers to attracting capital in emerging markets, and the financing structures helping to scale investment in critical infrastructure projects.
Watch the full interview
"Resilience infrastructure goes one step beyond. It invests in assets that are not only resilient themselves but also contribute to the resilience of the communities that they serve."
Mostafa Ziaee, AXA
Key insights
Resilience infrastructure goes beyond asset resilience
While resilient infrastructure is designed to withstand and adapt to risk, resilience infrastructure goes a step further by delivering essential services that help communities withstand, adapt to and recover from disruption.
A compelling investment case
Resilience infrastructure has the potential to deliver attractive risk-adjusted returns, portfolio diversification and long-term economic and social benefits. Reflecting this opportunity, AXA has committed to investing US$500 million annually in infrastructure and other instruments that strengthen community resilience globally.
Unlocking investment in emerging markets
Despite significant opportunities, investment in emerging market infrastructure remains constrained by perceived risk, limited track record data and complex financing structures.
A scalable model for growth
The Infrastructure Resilience Development Fund (IRDF) aims to create a scalable and repeatable pathway for institutional investment in emerging market infrastructure through a blended finance model backed by global insurers and managed by BlackRock.
The future of resilience investing
As market participation grows and more performance data becomes available, resilience infrastructure could become a mainstream asset class for institutional investors.
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