International investment in sustainable infrastructure: The role of public-private partnerships

This report aims to understand how private capital can support SDG-aligned infrastructure by addressing key questions, including:

• What does the current landscape of private capital investment in infrastructure look like concerning the SDGs?
• What factors influence the success or failure of PPP models across regions and sectors?
• How do domestic and international policies impact PPP outcomes?

The report identifies barriers to FDI in PPPs, assesses common challenges in international projects and evaluates the role of multilateral development banks and international financial institutions in reducing costs and mobilizing investment.

Focusing specifically on international PPPs, the report is structured as follows:

• The introductory section provides the analytical foundation for the report and its conceptual framework, explains the distinction between domestic and international PPPs, and describes the datasets used for the research. It also delimits the scope of the analysis.
• Part 1 reviews the international PPP landscape, tracing its evolution and identifying current trends across regions, income groups, and sectors.
• Part 2 explores key features of international PPPs, focusing on the use of diverse de-risking mechanisms and the prominent roles played by governments and development finance
• Part 3 examines the main challenges hindering the growth of international PPPs, including the high cost of capital, operational and financing setbacks, and legal and dispute settlement risks. It highlights how blended finance and technical support help address these constraints.
• The final section presents policy implications and recommendations.

This resource provides further guidance related to the Direct Foreign Investment Supplement of the Climate Investment Planning and Mobilization Framework (CIPMF).