Regulatory framework
A coherent, predictable, and efficient regulatory framework can incentivise infrastructure investment and ensure the delivery of ongoing improvements in the quality of infrastructure services.
Note: Japan does not have complete data for this indicator. The sub-pillars on regulatory framework and permitting are not applicable for Australia and Canada at the federal level. Only the sub-pillars with complete data are included (countries with incomplete data are not included in the OECD average).
Why is this important?
Infrastructure projects often involve large amounts of financial resources and are executed over many years. They need to operate under regulations that contribute to optimising their lifespan and costs, assess risk exposure, and build resilience. A stable regulatory framework creates an enabling environment for effective management of infrastructure. Uncertainty concerning the “rules of the game”, or the low quality of the rules, can impact the willingness to invest in, maintain, upgrade and decommission infrastructure and ultimately affects the quality of service delivery. In the context of the green transition, an efficient regulatory framework and streamlined permitting procedures are important to ensure that environmentally sustainable and climate-resilient infrastructure are deployed at the right time and with the right speed.
