Exploring the Lifecycle of Large Infrastructure Projects
In this year’s event, panelists delved into the planning process for large infrastructure projects, focusing on the essential stages of the value chain.
Moderated by Richard Peers, founder of ResponsibleRisk, the discussion featured insights from industry leaders, including Cain Blythe (founder & CEO, CreditNature), Emma Maltby (technical director, Arcadis), Eoin Murray (chief investment officer, Rebalance Earth), Frank D’Agnese (president, CTO, and co-founder, Earth Knowledge), Henry Albrecht (CEO, TransparenC), and Sam Longman (head of sustainability and corporate environment, Transport for London).
Peers outlined five crucial stages of the infrastructure project value chain:
- Preparation and Consultation
- Application
- Design
- Financing
- Collaboration and Examination
Preparation
Longman began by discussing the preparation phase, emphasizing that effective case-making occurs before the application process. Understanding both the costs and benefits of a proposed project is vital. Longman shared a notable example involving TfL’s year-long research project, which quantified the relationship between ambient air temperature and the performance of the London Underground. “This data is powerful because asset managers focus on their bottom line,” he noted.
Longman also introduced TfL’s four-pillar approach for large infrastructure projects:
- Utilize existing systems to monitor how weather affects performance.
- Conduct climate risk assessments to forecast future impacts.
- Identify and track expenditures related to adaptation.
- Evaluate the effectiveness of adaptation measures.
Consultation
D’Agnese then addressed the consultation stage by presenting findings from a study conducted by Earth Knowledge, which focused on water resilience issues in the Western United States through a public-private partnership. He explained, “The variability of water supply will impact the reliability of aging infrastructure, necessitating retrofitting to enhance resilience.”
The study compared historical conditions of the three major rivers in the region—Columbia, Sacramento, and Colorado—projecting how these conditions will evolve by century’s end. Using a global digital twin of Earth, Earth Knowledge created simulations that revealed while Colorado’s output is expected to decline, the Sacramento and Columbia rivers may see increases over the next 75 years. This data aids in resource management and informs climate change mitigation strategies.
Design
In the design phase, Maltby and Blythe discussed two significant projects. Maltby highlighted the Junction 10 improvement scheme on the M5, emphasizing a community-centered design process. She outlined four impacts achieved through this integration:
- 25% carbon reduction: Through optimized engineering in construction elements.
- £10 million cost savings: Aligning carbon reduction with program efficiency.
- Enhanced flood resilience and biodiversity: Through innovative drainage and environmental planning.
- 30% of the design budget focused on social value: Supporting local employment and community initiatives.
Blythe spoke about CreditNature’s mission to rewild half the planet by 2050. His platform facilitates accredited restoration projects through an Ecosystem Condition Index that tracks progress, making it the world’s first independently accredited index of its kind.
Financing
During the financing discussion, Murray presented a four-returns framework used by nature capital fund managers:
- Financial returns: Assessing ROI and appropriate financing types.
- Nature outcomes: Aiming for improvements such as biodiversity and water quality.
- Social impact: Job creation and community resilience are prioritized.
- Inspirational return: Ensuring replicability and substantial societal impact.
Murray emphasized that achieving full landscape recovery requires comprehensive data and community engagement.
Collaboration and Examination
Peers addressed the significant challenge of data exchange across the sector. He proposed establishing a centralized infrastructure data hub to enhance collaboration and innovation.
Albrecht of TransparenC highlighted the diverse ways people consume data, introducing four personas to illustrate varied needs for information. To enhance understanding of data related to carbon markets and climate risk, TransparenC tailors its information delivery to meet these user preferences.
Panel Discussion: Analyzing the Showcase
Following the showcase, a panel moderated by Maltby examined the value chain’s key steps. Panelists included Cole Dittmar (climate change officer, Southwark Borough Council), Sam Longman, Stewart Mounsey (deputy director, Environment Agency), and Tom Harris (partner, Deloitte).
Mounsey discussed the need for balancing short-term benefits against long-term costs in sustainability investment. Longman reiterated that safety should be prioritized in sustainability discussions, while Harris noted a shift toward recognizing the inherent value of infrastructure investments.
Dittmar emphasized articulating climate risk and its implications for high-level strategies, advocating for stronger data support and incentivizing nature-based solutions as essential components for advancing sustainability in infrastructure projects.