Presented at the 4th Global Infrastructure Basel Summit 21 & 22 May 2014. Read more about the world leading platform for Sustainable Infrastructure Finance at www.gib-foundation.org. Next Summit: 27 & 28 May 2015 in Switzerland

1. Defining and Measuring Performance for Sustainability in
Infrastructure Development
Global Infrastructure Basel, 21 May 2014

2. Agenda
Main question
Performance based contracts take us some of the way but
do we need to go further – challenging but necessary
Comments
• Performance based contracts
• Definitions – what should we mean by performance in sustainable
infrastructure?
• Measurement for sustainability – what can, and/or should we
measure?
• Challenges and opportunities
Notes: High level, abstract, stating the obvious
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3. Performance based contracts - flexibility
Waste infrastructure solutions
-Moving from recycling outcomes to carbon performance
-Can be met through variety of infrastructure solutions
-High waste reuse + incineration + landfill
-High recycling + landfill
-Recycling + AD + gasification and fuel preparation
Waste infrastructure solutions
-Moving from recycling outcomes to carbon performance
-Can be met through variety of infrastructure solutions
-High waste reuse + incineration + landfill
-High recycling + landfill
-Recycling + AD + gasification and fuel preparation
Energy efficiency in buildings
-Energy performance leading to payback and carbon outcomes
-Can be met through different technologies
-Challenges in asset ownership/ leasing, financing and asset transfer
Energy efficiency in buildings
-Energy performance leading to payback and carbon outcomes
-Can be met through different technologies
-Challenges in asset ownership/ leasing, financing and asset transfer
Energy generation
-Energy generation and carbon performance
-Can be met through different ways e.g. Combination of low carbon,
renewable and fossil fuels
Energy generation
-Energy generation and carbon performance
-Can be met through different ways e.g. Combination of low carbon,
renewable and fossil fuels

4. Infrastructure that facilitates triple bottom line
Investor economic
returns
GDP
Asset creation
Facilitation of wider
economy
Investor economic
returns
GDP
Asset creation
Facilitation of wider
economy
Climate change
mitigation/
adaptation
Natural resource
consumption/
depletion
Pollution
Climate change
mitigation/
adaptation
Natural resource
consumption/
depletion
Pollution
Livelihoods
protection/ creation
Skills creation
Empowerment/
choice/ opportunity
Health impacts
Livelihoods
protection/ creation
Skills creation
Empowerment/
choice/ opportunity
Health impacts
EconomicEconomic EnvironmentalEnvironmental SocialSocial

5. Project level considerations
DevelopmentDevelopment ConstructionConstruction OperationOperation De-
commission
De-
commission
ConsiderationsConsiderations
Energy
Waste
Water
Biodiversity
Materials
Livelihoods
Transparency
Governance
etc.
Energy
Waste
Water
Biodiversity
Materials
Livelihoods
Transparency
Governance
etc.

6. Outcome based measurement – difficult.
National policy level
e.g. National Green Accounts India proposal
“Basis for economic evaluation should be comprehensive notion of wealth”:
•Reproductive capital
•Human capital
•Natural capital
National policy level
e.g. National Green Accounts India proposal
“Basis for economic evaluation should be comprehensive notion of wealth”:
•Reproductive capital
•Human capital
•Natural capital
Policy/ Project Level
e.g. UK Green Book Methodology
Attempts to quantify and monetise different project benefits to generate a
societal IRR
Examples: Carbon reduction, job creation, etc.
Example of considerations: displacement, leakage, additionality
Policy/ Project Level
e.g. UK Green Book Methodology
Attempts to quantify and monetise different project benefits to generate a
societal IRR
Examples: Carbon reduction, job creation, etc.
Example of considerations: displacement, leakage, additionality
Outcome Level
e.g. Energy, Carbon and Cost reduction
-Persistence factors
-Technology replacement timings
Outcome Level
e.g. Energy, Carbon and Cost reduction
-Persistence factors
-Technology replacement timings

7. Challenges and opportunities
• Challenges
– Difficulty in measuring e.g. Natural capital. (value of one village
pond will be different from another as depends on the context)
– Metrics not fully developed/ not widely known
– High resource capacity required to perform comprehensive
measurements and monitoring
• Opportunities
– Tools do exist to help – carbon and ecological footprinting;
ecosystem services valuation; social impact assessment tools
– Considerable opportunity to improve natural and human capital
rather than ‘avoid or mitigate negative outcomes’ - public sector
risk-sharing role can facilitate this

8. THANK YOU!
Sumeet Manchanda
Sumeet.Manchanda@thomsonreuters.com

9. Disclaimer
A Point Carbon publication
Copyright © 2014, by Point Carbon, a Thomson Reuters Company
All rights reserved. No portion of this publication may be photocopied, reproduced, scanned into an
electronic retrieval system, copied to a database, retransmitted, forwarded or otherwise redistributed
without prior written authorization from Point Carbon. See Point Carbon’s “Terms and Conditions” at
www.pointcarbon.com
The data provided in this report were prepared by Point Carbon’s Advisory Services division. We have
used publicly available materials and referenced them accordingly. Publications of Point Carbon’s
Advisory Services division are provided for information purposes only. Prices are indicative and Point
Carbon does not offer to buy or sell or solicit offers to buy or sell any financial instrument or offer
recommendations to purchase, hold or sell any commodity or make any other investment decision.
Other than disclosures relating to Point Carbon, the information contained in this publication has
been obtained from sources that Point Carbon believes to be reliable, but no representation or
warranty, express or implied, is made as to the accuracy or completeness of this information. The
opinions and views expressed in this publication are those of Point Carbon and are subject to change
without notice, and Point Carbon has no obligation to update either the opinions or the information
contained in this publication.
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10. Disclaimer
A Point Carbon publication
Copyright © 2014, by Point Carbon, a Thomson Reuters Company
All rights reserved. No portion of this publication may be photocopied, reproduced, scanned into an
electronic retrieval system, copied to a database, retransmitted, forwarded or otherwise redistributed
without prior written authorization from Point Carbon. See Point Carbon’s “Terms and Conditions” at
www.pointcarbon.com
The data provided in this report were prepared by Point Carbon’s Advisory Services division. We have
used publicly available materials and referenced them accordingly. Publications of Point Carbon’s
Advisory Services division are provided for information purposes only. Prices are indicative and Point
Carbon does not offer to buy or sell or solicit offers to buy or sell any financial instrument or offer
recommendations to purchase, hold or sell any commodity or make any other investment decision.
Other than disclosures relating to Point Carbon, the information contained in this publication has
been obtained from sources that Point Carbon believes to be reliable, but no representation or
warranty, express or implied, is made as to the accuracy or completeness of this information. The
opinions and views expressed in this publication are those of Point Carbon and are subject to change
without notice, and Point Carbon has no obligation to update either the opinions or the information
contained in this publication.
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