Infrastructure perspectives for an evolving landscape

Infrastructure projects bring together long-term investment, complex delivery models and a wide range of stakeholders. From securing finance and managing construction risk to maintaining operational performance, each stage presents distinct commercial, regulatory and sustainability considerations.

Regulatory complexity, ESG expectations and cross-border coordination also shape how infrastructure owners, asset managers, funds and public-sector entities create and protect long-term value. In Luxembourg and across Europe, these considerations are heightened by ambitious public investment programs, evolving concessions frameworks and the growing convergence of private capital with public infrastructure needs.

A snapshot of the infrastructure landscape

€164 billion NAV

Luxembourg as a fund domicile

Luxembourg’s infrastructure fund market has expanded significantly over the past five years. The total NAV of infrastructure funds managed by Luxembourg AIFMs increased from €44 billion in 2021 to €164 billion in 2025, meaning that the market has nearly quadrupled over the period.

Source: CSSF - AIFM Reporting dashboard 2021-2025

Confidence in sector growth

Despite geopolitical and macroeconomic uncertainty, 84 percent of infrastructure and transport CEOs surveyed are confident in the sector’s growth over the next three years, while 87 percent are confident in the growth of their own organizations. By comparison, only 46 percent express confidence in global economic growth.

2050 target

The green infrastructure imperative

EU climate neutrality objectives are accelerating demand for renewable energy, grid modernization, sustainable transport and smart cities infrastructure – reshaping asset selection, financing structures and ESG reporting obligations across the sector.

Source: European Green Deal, EC

Considerations across the infrastructure lifecycle

Regulatory and concession complexity

Infrastructure projects span multiple regulatory regimes – from EU state aid rules and procurement directives to national concession frameworks and sector-specific licensing requirements. Navigating these demands detailed governance and proactive regulatory engagement.

Project valuation and financial modeling

Long asset lifetimes, variable revenue streams and significant construction risk require robust financial models, independent valuation challenge and disciplined stress-testing – especially as interest rate assumptions and inflation inputs shift materially.

Financing structure and capital markets access

Infrastructure projects increasingly blend equity, senior debt, green bonds, blended finance and public co-investment. Structuring these arrangements – while meeting investor, lender and rating agency expectations – demands integrated advisory capability across capital markets and tax.

ESG integration and sustainable financing reporting

Investors, regulators and lenders increasingly require robust ESG disclosure, SFDR alignment and EU Taxonomy compliance. Infrastructure clients must embed sustainability metrics into asset monitoring, reporting frameworks and investment decision processes.

Operational resilience and digital transformation

Aging asset bases, cyber vulnerabilities and pressure to digitize operations are reshaping infrastructure management. Clients must balance technology investment with cost discipline while maintaining service continuity and regulatory compliance.

Regulatory and concession complexity Project valuation and financial modeling Financing structure and capital markets access ESG integration and sustainable financing reporting Operational resilience and digital transformation

Regulatory and concession complexity

Infrastructure projects span multiple regulatory regimes – from EU state aid rules and procurement directives to national concession frameworks and sector-specific licensing requirements. Navigating these demands detailed governance and proactive regulatory engagement.

Project valuation and financial modeling

Long asset lifetimes, variable revenue streams and significant construction risk require robust financial models, independent valuation challenge and disciplined stress-testing – especially as interest rate assumptions and inflation inputs shift materially.

Financing structure and capital markets access

Infrastructure projects increasingly blend equity, senior debt, green bonds, blended finance and public co-investment. Structuring these arrangements – while meeting investor, lender and rating agency expectations – demands integrated advisory capability across capital markets and tax.

ESG integration and sustainable financing reporting

Investors, regulators and lenders increasingly require robust ESG disclosure, SFDR alignment and EU Taxonomy compliance. Infrastructure clients must embed sustainability metrics into asset monitoring, reporting frameworks and investment decision processes.

Operational resilience and digital transformation

Aging asset bases, cyber vulnerabilities and pressure to digitize operations are reshaping infrastructure management. Clients must balance technology investment with cost discipline while maintaining service continuity and regulatory compliance.

How we can support you

At KPMG Luxembourg, our multidisciplinary teams support project sponsors, fund managers, lenders and public entities across the infrastructure value chain. We bring together sector knowledge and audit, tax and consulting experience to address the financial, regulatory and operational dimensions of infrastructure projects.

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Experience across the project lifecycle

From project finance structuring and financial close through construction-phase monitoring, operations and exit – our multidisciplinary teams support every stage with technical depth and commercial judgment.

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Global network, local expertise

KPMG Luxembourg operates within a global network spanning 143 countries, giving infrastructure clients access to international sector expertise, cross-border tax capability and local market knowledge wherever assets are located.

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Integrated deal and advisory capability

Our Deal Advisory, Tax, Audit and Management Consulting professionals work in integrated teams – enabling holistic advice that connects financial, regulatory and operational perspectives across complex infrastructure mandates.

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ESG and sustainability advisory

Our ESG practice supports infrastructure clients with EU Taxonomy alignment, SFDR disclosure, green finance frameworks and sustainability reporting – helping investors and operators meet rising expectations from regulators and capital markets.

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Partner-led, client-centric approach

Infrastructure mandates are led by experienced partners who bring deep sector knowledge and long-term client relationships – ensuring strategic continuity, technical rigor and a genuinely tailored approach to each engagement.

Industry groups and professional associations

Luxembourg Private Equity & Venture Capital Association (LPEA)

Association of the Luxembourg Fund Industry (ALFI)

European Long-Term Investors Association (ELTI)

Global Infrastructure Investor Association (GIIA)

Commission de Surveillance du Secteur Financier (CSSF)
Institut des Réviseurs d’Entreprises (IRE)
European Fund and Asset Management Association (EFAMA)
Invest Europe – Infrastructure Committee
Luxembourg Sustainable Finance Initiative (LSFI)

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