Leaders of leading industrial nations at the German-hosted G7 summit announced the launch of the Partnership for Global Infrastructure (PGII), a formal collaboration aimed at mobilizing hundreds of billions of dollars of investment for “quality, sustainable infrastructure,” primarily focused on developing countries.

Unveiled by US President Biden and Federal Chancellor Scholz, the PGII aims to help close the infrastructure gap in low and middle income economies, as they face massive capital requirements for investments in areas including climate mitigation, communications and healthcare.

The initiative also comes as China ramps its massive “Belt and Road” program, providing financing for emerging market economies for infrastructure investments.

Biden said:

“This isn’t aid or charity; it’s an investment that will deliver returns for everyone, including the American people and the people of all our nations.  It’ll boost all of our economies, and it’s a chance for us to share our positive vision for the future and let communities around the world see themselves — and see for themselves the concrete benefits of partnering with democracies.”

Overall, the leaders stated that they aim to mobilize $600 billion in global infrastructure investment by 2027.

One of the key pillars of the program outlined by President Biden are investments to help tackle the climate crisis and bolster energy security. Focus areas include investing in climate resilient infrastructure, energy technologies, and clean energy supply chains.

Other focus investment areas include infrastructure for communications and power delivery, investments aimed at increasing opportunities for economic participation by women, and health systems development and improvement.

Scholz said:

“The G7 are seeking to make the world a better place with a better infrastructure.”