During the G7 summit in Cornwall, the group of nations unveiled a global initiative to help low and middle-income countries to cover the vast cost of green infrastructure. Intended as a green rival to China’s Belt and Road Initiative, the Build Back Better World (B3W) initiative aims to unlock private capital to invest in projects related to climate as well as health, digital technology and gender equality.
The G7 did not give details about timescales or the total investment pot, except to say that it would contribute to the upwards of US$40 trillion (£28.4 trillion) needed to pay for such infrastructure in developing countries, and that different members of the group would have responsibility for different parts of the world. China’s Belt and Road Initiative has spanned infrastructure projects in some 140 countries around the world since launching in 2013, including G7 member Italy.
So will the B3W “transform the financing of infrastructure projects in developing countries”, as it is claimed in the Downing Street press release? And how might this be achieved?
Jackson, K. and O. Shepotylo (2021). Four reasons why G7 climate finance initiative will struggle against China’s Belt and Road. The Conversation. 14 Jun.