{"id":19537,"date":"2016-08-12T00:01:14","date_gmt":"2016-08-11T23:01:14","guid":{"rendered":"https:\/\/www.lse.ac.uk\/granthaminstitute\/?post_type=publication&#038;p=19537"},"modified":"2024-08-19T14:37:08","modified_gmt":"2024-08-19T13:37:08","slug":"building-21st-century-sustainable-infrastructure-part-2-institutional-reform","status":"publish","type":"publication","link":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/building-21st-century-sustainable-infrastructure-part-2-institutional-reform\/","title":{"rendered":"Building 21st century sustainable infrastructure (part 2): institutional reform"},"content":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<?xml encoding=\"UTF-8\"><h3>Headline issue<\/h3>\n<p>The new UK Government under Prime Minister Theresa May has committed to boosting UK productivity, to addressing the widening wealth gap, and to supporting the transition to low-carbon economic growth. Achieving all this will require the right investments by both the public and private sectors, particularly in sustainable infrastructure, at a time of heightened economic uncertainty.<\/p>\n<p>&lsquo;<a href=\"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/building-21st-century-sustainable-infrastructure-part-1-time-to-invest\/\">Building 21st century sustainable infrastructure (part 1): time to invest<\/a>&rsquo; highlighted that the current global economic environment provides an opportunity and rationale to borrow at below-zero real interest rates in order to invest in infrastructure. This policy brief sets out the institutional reforms that the Government should implement to facilitate its delivery.<\/p>\n<p><strong>Key findings <\/strong><\/p>\n<p>To facilitate an enhanced investment programme for sustainable infrastructure the Government should consider the following:<\/p>\n<p><strong>Reforming Whitehall<\/strong><\/p>\n<ul>\n<li>Design institutional frameworks to promote stable policies that are free from short-term political interference by devolving responsibility for complex decisions to independent technocrats who operate transparently and are accountable to Parliament.<\/li>\n<li>Develop fiscal rules in line with the principles of full resource-based balance sheet accounting, which distinguish between borrowing to invest and borrowing to consume.<\/li>\n<li>Prioritise investments with a positive financial return to the public finances over more expensive off-balance-sheet investments.<\/li>\n<\/ul>\n<p><strong>Effecting Devolution<\/strong><\/p>\n<ul>\n<li>Devolve decision-making and financing to the local level, providing increased fiscal autonomy for cities, and reform planning laws.<\/li>\n<li>Build upon existing city governance mechanisms and planning systems to enhance civic autonomy.<\/li>\n<\/ul>\n<p><strong>Enabling the National Infrastructure Commission<\/strong><\/p>\n<ul>\n<li>Give the Government the ability to issue infrastructure bonds through the National Infrastructure Commission.<\/li>\n<li>Provide risk guarantees and define a long-term vision of coherent policies to keep the infrastructure project pipeline full.<\/li>\n<li>Commission an independent assessment to consider bringing Private Finance Initiative contracts on-balance sheet and devolving responsibility to the National Infrastructure<\/li>\n<li>Commission to carry out a rigorous business case assessment for investments that are believed capable of generating positive returns.<\/li>\n<\/ul>\n<p><strong>Natural Capital Accounting<\/strong><\/p>\n<ul>\n<li>Adopt the recommendation from the Natural Capital Committee that the National<\/li>\n<li>Infrastructure Commission should have a natural capital investment plan.<\/li>\n<li>Ensure the National Infrastructure Commission encourages infrastructure investment in capital assets that are compatible with ambitious decarbonisation.<\/li>\n<li>Empowering the Green Investment Bank<\/li>\n<li>Capitalise the Green Investment Bank and provide risk guarantees to reassure private investors that the Government&rsquo;s reduced minority share in the bank constitutes a sufficiently large stake to mitigate against sudden and adverse policy changes.<\/li>\n<li>Consider the National Infrastructure Commission taking on all Green Investment Bank infrastructure-related projects.<\/li>\n<\/ul>\n\n","protected":false},"excerpt":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<?xml encoding=\"UTF-8\"><p>Headline issue The new UK Government under Prime Minister Theresa May has committed to boosting UK productivity, to addressing the&hellip;<\/p>\n\n","protected":false},"author":12,"featured_media":0,"template":"","tags":[289,151,426,351,136,557,437],"publication-type":[1682],"topic_area":[4696,4710,4711,4704],"class_list":["post-19537","publication","type-publication","status-publish","hentry","tag-governance","tag-green-investment-bank","tag-infrastructure","tag-investment-decisions","tag-private-investment","tag-public-investment","tag-uk","publication-type-policy-publications","topic_area-uk-emissions-policy","topic_area-public-finance","topic_area-banking-and-private-investors","topic_area-governance"],"acf":{"exclude_from_sync":{"ref_value":"field_560538b0e7350","value":"0","type":false,"post_type":""},"downloads":{"ref_value":"field_52f16cc1a80f2","value":["https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-content\/uploads\/2016\/08\/Zenghelis-policy-brief-August-2016b.pdf"],"type":"download","post_type":""},"rss_newsletter":{"ref_value":"field_54f5c2c1544d8","value":"","type":false,"post_type":""},"profile_link":{"ref_value":"field_52f164b5189e9","value":["dimitri-zenghelis"],"type":"relationship","post_type":"profile"},"spotlight":{"ref_value":"field_52f80896506d3","value":"","type":false,"post_type":""}},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - 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