FAST-Infra
FINANCE TO ACCELERATE THE SUSTAINABLE TRANSITION-INFRASTRUCTURE (FAST-Infra), a public-private Initiative, was conceived by Climate Policy Initiative (CPI), HSBC, the IFC, OECD, and the Global Infra Facility (GIF, from the WBG under the auspices of the One Planet Summit to provide practical and market-based solutions to the mobilization at scale of finance across the world.
From its inception in 2019, FAST-Infra has grown as a large multistakeholder market initiative. Over 80 global organisations representing governments, the financial sector, investors, Development Finance Institutions, insurers, rating agencies and NGOs have contributed to developing concrete market solutions and tools to enable + investment to flow in + sustainable infra projects globally at pace and at scale.
A PERMANENT ORGANISATION
Based in Paris, the Association brings together state and public, private industrial and financial, multilateral, and civil society institutions committed to deploying sustainable infrastructure globally.
The purpose of FAST-Infra Group is to promote solutions contributing :
• to the development of sustainable, affordable and inclusive infrastructure services
• to make sustainable infrastructure a mainstream and liquid asset class,
• to integrate sustainability into the life cycle of infrastructure projects,
• and to attract private investment on the scale and pace required by the UNSDG & Paris Agreement, in alignment with the G20 QII Principles.
FAST-Infra Group will manage FAST-Infra for all members/stakeholders, ensure that associated initiatives remain faithful to its values and have the oversight and overall management responsibility for FAST-Infra.
FAST-Infra group has developed and supervises:
• the FAST-Infra Sustainable Infrastructure® Label, to demonstrate the sustainability of infrastructure assets at any stage of their life cycle
• the FAST-Infra Platform, to help scale up the pipeline of bankable and sustainable projects
FAST-INFRA SUSTAINABLE INFRASTRUCTURE® LABEL
This Label is a globally applicable label for infrastructure projects/assets demonstrating significant positive sustainability performance.
The FISI Label is based on 4 ‘dimensions’ of sustainability : E,SG, Adaptation & Resiliency. +14 criteria.
The purpose of the FISI Label is to harmonise existing standards, frameworks and taxonomies. It aims to transform sustainable infra into a mainstream, liquid asset class.
In 2021, several coalitions endorsed the FISI Label (see website).
They are expected to adopt the FISI Label. These include – GFANZ, ICLEI, Investor Leadership Network (ILN), Long-term Infrastructure Investors Associations (LTIIA) and Sustainable Markets Initiative (SMI).
In Oct 2022, Following RfP & competitive tendering, Global Infrastructure Basel (GIB) and Bloomberg LP were appointed to operate the FISI label secretariat jointly.
Their Role is to :
(i) managing the SI Label & ensure it remains relevant and appropriate ;
(ii) Set up a Data Reporting Repository to host key information, provided by sponsors, developers, and owners to enable other stakeholders, including prospective investors to access and review.
The overall governance is inspired by the Green Bond principles.
FAST-INFRA PLATFORM
Infrastructure projects need not only to be sustainable ; they need to make economic sense, requiring a complex project risk analysis, management, and mitigation, currently available for large projects only.
Building from the MDB-led platform for sustainable infrastructure preparation (SOURCE), 8 public and private institutions led by HSBC designed and developed an open-source, innovative, collaborative data-centric platform : FAST-Infra Platform (FIP).
FIP synergises a global user community of governments, developers, verifiers, and financiers across the sustainable infrastructure lifecycle by :
(i) allowing them to cooperate, transact and manage their project data in trust across a sustainable infrastructure lifecycle
(ii) mobilising third-party technologies and innovation to leverage such data at project and aggregated levels.
It aims at becoming the “Market infrastructure for the Infrastructure market”.
FAST-Infra Group intends to incubate and develop FIP as a stand-alone, for-profit entity.
FAST-INFRA BEYOND
This last dimension, yet to be developed, is targeting Innovative financing tools, as:
– Global Renewable Energy Guarantees
- Regional diversified guarantee funds / off-take guarantees covering several months of debt payments (e.g. for PPAs) with interest / premium payments.
– Open-Sourced Managed Co-Lending Portfolio Programme (OMCPP)
- Syndication structure allowing for participation from a wide range of MDBs in emerging markets and investors.
– Sustainable Financing Facility (SFF)
- Banks and concessional capital lend to NDBs for on-lending to sustainable infra projects
Overall goal
foster a liquid & deep market for the (re-)financing of sustainable infrastructure
JOIN THE FAST-INFRA COMMUNITY
It is understood that the faster the new economy of sustainable infrastructure will emerge, the lower the risks and the higher the opportunities for all.
As such, FAST-Infra Group welcomes as members governments, the private sector, development finance institutions and NGOs, and leading individuals and scholars to build this new economy.
Members must have a clear commitment to bridge the sustainable infrastructure investment gap.
They must demonstrate the support of their institutions for the initiative and be willing to actively collaborate in the group’s peer exchange and collective actions within the working groups.
FAST-Infra Group actively encourages its members to endorse and implement the FAST-Infra Sustainable Infrastructure® Label, use FAST-Infra Platform for their sustainable infrastructure projects, and participate in their design, making and governance.
The main aim of FAST-Infra Group is to support its members as well as the clients and partners thereof, in developing and implementing the FAST- tools for sustainable infrastructure financing and refinancing. Relationships between members, partners, and clients must comply with applicable compliance and competition rules.
Being a member of this association does not entail any specific liability beyond compliance to applicable laws, particularly competition rules, adherence to the association’s purpose, the articles of association (and the internal rules and code of ethics once adopted by the governance of the association).
Public and private organisations, multilateral banks, NGOs, academic and research institutions, and individuals can apply for membership by filing the membership form or show support by filling the partnership form (available on request) and soon online.
OPERATION
FAST-Infra Group (FIG) will operate via dedicated Working Groups which oversee each strategic workstream.
Working Groups mission is to accelerate impact, maximise efficiency, and provide feedback, proposals and outcomes to the Board of Directors of FIG. When appropriate Working Groups and their sub-groups may include representatives from partner organisations and external experts.
Members of Working Groups meet regularly.
Additional meetings for peer exchange and sub-groups on specific topics may be scheduled.
Each member has the option to join Working Groups and sub-groups. Each member is invited to contribute their expertise to the group(s) and to actively contribute to those group(s) they have opted to participate in.
GOVERNANCE AND BUDGET
FAST-Infra Group will be guided by a Board of Directors.
The Board of Directors comprises 12 representatives, including three from countries listed in Annex I to the Kyoto Protocol, three from other countries, four from the private sector and two from multilateral banks/NGOs to ensure that all categories of stakeholders are considered.
The General Assembly of FAST-Infra Group was held as of June 22nd, 2023.
The Board to be elected will in turn select a Secretariat ; an operating budget, is put forward to the General Assembly of FAST-Infra Group for approval annually.
Each member, except NGOs, academic and research institutions and individuals, is requested to contribute to the core budget.
Additional voluntary contributions and multiannual financial support commitments are welcomed. Members can individually and separately fund special projects, incubation, acceleration, multistakeholder partnerships, research project and communication (e.g., ad-hoc events) to be coordinated by the Secretariat.
