Paperjam: To start out, broadly speaking, what are some examples of infrastructure investments that can be considered as contributing to the sustainable transition?
Some examples include renewable energy infrastructure such as wind farms and solar parks but also green hydrogen plants; sustainable transport systems such as charging stations, metro systems, car- or bike-sharing platforms; green and affordable housing focussing on energy efficiency and performance; water and sanitation infrastructure and circular economy facilities; or digital infrastructure such as smart grids, energy management platforms, digital traffic management services, digital marketplaces and climate monitoring tools.
Beyond infrastructure like solar panels or wind farms, we sometimes read about projects involving airports or motorways that are presented as “green” projects, even though cars and airplanes contribute to pollution. How and why would these kinds of projects be considered infrastructure that can help boost the green transition?
CG: The differentiating factor is the sustainability goal: if these projects are designed and implemented with sustainability at their core, they can potentially support the green transition. For example, an airport could be built using green materials, providing for energy-efficient terminals and means of operations and facilitating renewable energy (e.g., with solar panels). There are plans for more sustainable aviation fuels, and carbon emissions can be reduced, tracked and offset.
Because these are such long-term projects, is there a possibility that regulation may change in the course of a project’s lifetime, thus affecting the infrastructure project itself? If so, how can these changes be adapted to?
CG: Yes, it is indeed possible that regulation changes between the planning and the completion of an infrastructure project, which may last several years to decades. This is even more true for regulation around the sustainable transition, which is still an evolving topic that is influenced by local and international environmental policies, technological advancements and economic market conditions amongst other factors.
It’s important that the parties involved in these infrastructure projects try to anticipate as much as possible.
It’s important that the parties involved in these infrastructure projects try to anticipate as much as possible (through a solid contractual framework and room for flexibility in the project design); monitor the regulatory framework (with regulatory horizon scanning and ongoing monitor-ing of compliance procedures and ESG governance structures); and engage with relevant stakeholders (policy-makers, communities, regulators, NGOs) where required.
What would you say are the top three challenges around infrastructure investments and the energy transition?
CG: This regulatory uncertainty is definitely one of the top three challenges, and parties usually try to navigate this through through legal and contractual mechanisms. Technology risk and financing structures are also factors that investors need to continuously examine closely.
Regulatory complexity adds another layer of difficulty. In the European Union, evolving frameworks such as the Sustainable Finance Disclosure Regulation (SFDR) and the proposed revisions to the Alternative Investment Fund Managers Directive (AIFMD2) are increasing compliance demands. Fund managers must also navigate a patchwork of national regulations, which complicates cross-border investment strategies and adds to operational costs.
Data and valuation challenges further complicate the picture. Accurately pricing climate-related risks and forecasting asset performance under various transition scenarios is no small feat--particularly for long-duration assets like offshore wind farms or transmission networks. At the same time, investors are demanding more frequent and digitalised ESG reporting. Meeting these expectations requires significant investment in data infrastructure and technology, placing additional strain on fund managers.
Unlike other sectors, infrastructure has a distinct advantage: we see increasing allocations from institutional investors on sustainable investments, particularly on the energy transition and energy security.
Despite these challenges, infrastructure remains one of the most resilient and opportunity-rich asset classes for driving the energy transition. With the right mix of policy support, innovation and financial tools, stakeholders can align on standards, de-risk innovation and build the systems needed to support long-term sustainability goals. Unlike other sectors, infrastructure has a distinct advantage: we see increasing allocations from institutional investors on sustainable investments, particularly on the energy transition and energy security. More and more investors are identifying the right level of projects to invest in within the renewables space.
In a perfect world, what should be done to boost infrastructure investments in Europe and support the green transition?
VM + ZA: In a perfect world, accelerating infrastructure investment in Europe to support the green transition would require a coordinated blend of policy reform, technological innovation and effective financing.
A key priority is modernising Europe’s energy infrastructure to accommodate the growing share of renewable energy. This means investing in smart grid technologies, cross-border interconnectors and large-scale energy storage systems. A more flexible and resilient grid is critical to managing the variability of renewables and ensuring long-term energy security.
Equally important is strengthening collaboration between the public and private sectors. Governments must play a proactive role in incentivising investment through mechanisms such as blended finance, which strategically combines public or philanthropic capital with private investment. Instruments like guarantees, concessional loans and first-loss capital can help de-risk early-stage projects and attract private capital into emerging technologies that are vital for the transition but not yet commercially mature.
Supporting research, development and pilot programmes for next-generation technologies--such as green hydrogen, carbon capture and nature-based solutions--is crucial.
Innovation must also be at the heart of the strategy. Supporting research, development and pilot programmes for next-generation technologies--such as green hydrogen, carbon capture and nature-based solutions--is crucial. But innovation isn’t just about technology. It also involves building the institutional capacity to plan, finance and manage complex infrastructure projects in a sustainable and inclusive way. This includes investing in urban infrastructure that supports both climate mitigation and adaptation--projects that improve resilience to extreme weather whilst enhancing the liveability of cities.
Finally, regulatory clarity is essential especially in the current geopolitical context. Rather than introducing more regulation, what’s needed is better regulation--clear, consistent and harmonised across EU member states. Streamlined rules would reduce uncertainty for investors and accelerate the deployment of critical infrastructure, without compromising environmental or social safeguards.
Ultimately, unlocking the full potential of infrastructure for the green transition will require a long-term vision, not only in the technology we use, but also in how we finance, regulate and govern the systems that will shape Europe’s sustainable future.
This article was written for the Alternative Assets supplement to the Nexus 2025 issue of Paperjam magazine, published on 12 June. The content is produced exclusively for the magazine. It is published on the site to contribute to the full Paperjam archive. Click this link to subscribe to the magazine.
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