1、04From ports to power plants,disruption is the new normal11The infrastructure financing gap03 July 2024Allianz ResearchSecuring critical infrastructure:AllianzTrade15Green investment for infrastructure:killing two birds with one stonethe two-for-one of green investment 2In a world of mounting geopol

2、itical tensions and intensifying climate change,critical infrastructure is particularly at risk of disruption.Recent events have shown how vulnerable industry,energy and transport services can be to conflict or damages from increasingly frequent heatwaves,floods,storms and droughts.Nearly 85%of good

3、s traded around the world are transported by container ships but tensions in the Red Sea have effectively blocked off the Suez Canal,a vital waterway for trade between Asia and Europe.As a result,shipping costs have surged by+92%.At the same time,fluctuating water levels are threatening inland trans

4、portation and ports are increasingly at risk from coastal floods.Meanwhile,energy supply is also at risk as power plants and pipelines can come under physical attack or sabotage,while droughts,flooding and storms could also lead to widespread power outages and business interruption,threatening both

5、national security and global economic stability.Direct damages alone from climate change amount to USD30bn a year in high-income countries and USD18bn in low-and middle-income countries.In this context,the geopolitical risk premium is increasing for both insurance and investments.By the end of last

6、year,war risk insurance premiums for the Red Sea were increased to up to 1%of the value of the ship,from 0.07%before the Israel-Hamas war.Even companies that are rerouting their ships to avoid the area are paying a higher price for longer routes.Similarly,financial markets have reacted by demanding