Christian Wertli is the Head of Infrastructure at Swiss Re Public Sector Solutions, and an esteemed member of the FPI jury. In this conversation, he provides insights into his role in promoting sustainability in the built environment, financial hurdles facing investors and much more.
Introducing Christian Wertli, the Head of Infrastructure at Swiss Re Public Sector Solutions, and an esteemed member of the FPI jury. In this conversation, he provides insights into his role in promoting sustainability in the built environment, the financial hurdles facing investors and risk mitigation strategies for financing sustainable infrastructure, along with future prospects for innovation and collaboration in this field.
Christian Wertli is the Head of Infrastructure at Swiss Re Public Sector Solutions.
The Swiss Re Group is one of the world's leading providers of reinsurance, insurance and other forms of insurance-based risk transfer, working to make the world more resilient.
Christian is also one of the esteemed Jury members for FPI, assisting us in the curation of projects in the agenda and providing leading advice on the forefront of bankable and viable early stage projects.
In this exclusive interview, he provides insights about his role in achieving sustainable and resilient infrastructure, the financial hurdles that investors encounter, as well as some future prospects for sustainable infrastructure.
Read on for a glimpse into the mind of one of the leading infrastructure experts in the industry.
In your role, how are you helping advance sustainability in the built environment?
Christian Wertli (CW): I am working with financial sponsors, including governments, NGOs, multilaterals, investors and financiers, as well as contractors and intermediaries to ensure the resilience of their projects. The infrastructure we build today needs to be environmentally sustainable and resistant to the rising frequency and severity of natural hazards. The insurance industry has a role here, taking these factors into account in pricing and risk calculations. At Swiss Re, all projects are aligned with best market practices and measured on our Environmental, Social, and Governance (ESG) Risk Framework.
What are the challenges facing investors and decision makers when it comes to financing sustainable and resilient infrastructure projects?
CW: For infrastructure developers, financiers, and investors alike, the biggest constraint is unlocking private finance, especially for Emerging Markets and Developing Economies (EMDEs). With sustainable infrastructure there is a shortage of well-structured, bankable project pipelines.
Early and transparent discussion about risk allocation between Project Co, Lenders/financiers and insurers / risk takers. Insurance companies play a crucial role for projects. If a project can't get insured, it will not get financed. Involving insurers early on in the process to provide risk insights, e.g. on climate and natural catastrophes (Nat Cat) risk and recommendations on risk mitigation and risk transfer will make more projects bankable.
What do you see as the most exciting opportunities for innovation and collaboration in the field of future-proof infrastructure in the coming years?
CW: Private sector net-zero commitments. However, they are yet to translate into climate investment and real action at scale. Several bottlenecks and constraints hamper private investment, such as a continued lack of large investment grade projects, the ongoing nascence of many decarbonisation technologies, and persistent information asymmetries and large data gaps.
How do you think that Future-Proof Infrastructure is bridging the gap between investors, public entities and project developers?
CW: Closing the sustainable infrastructure finance gap is a collective effort. This forum will hopefully lay the foundation to bring together a global community of public entities and private sector players to facilitate the financing and execution of sustainable infrastructure projects.
