Author: Reshma vallabhaneni

Focus on Policy & Budget Actions  

Fresh from ISC Connect 2026, it is clear that much of Australia and New Zealand’s infrastructure has moved decisively from ambition to delivery – but it is equally clear that the task ahead remains substantial. This year’s record number of award submissions and the calibre of those recognised, reflects a sector that is increasingly embedding sustainability and resilience into how infrastructure is planned, delivered and operated. From major transport programs to community‑focused upgrades, the projects recognised this year demonstrate how infrastructure is being designed and delivered to endure, adapt and create long‑term value.  

The projects and organisations recognised – from the Suburban Rail Loop East, Te Ara Tupua to the Fitzroy to Gladstone Pipeline – demonstrate what is possible when policy, investment and delivery align around clear outcomes. They show that infrastructure can deliver economic, environmental and social value together, and that resilience is becoming a core design principle rather than an afterthought. 

But these examples also highlight the scale of the opportunity – and the gap that still exists across the broader market. While leading projects are setting new benchmarks, consistent, system-wide adoption of outcomes-focused, sustainable approaches is still uneven. Closing that gap will be critical if infrastructure is to fully support productivity, decarbonisation and the growing demands of our communities.  

As ISC has a positive close to the financial year, recent Federal and State budgets reinforce that infrastructure is increasingly positioned as a central lever for economic performance, energy transition and housing delivery. Investment is becoming more targeted and more accountable — with a stronger focus on system performance, coordination and long‑term value. The challenge is now to ensure that this investment consistently translates into measurable outcomes on the ground.  

This is where ISC’s role continues to evolve. We are seeing strong growth in engagement across our ratings, training, events and thought leadership work as governments and industry look to lift capability and embed more consistent approaches. The direction of travel is clear, but progress at scale will require deeper collaboration across the sector.  

The opportunity ahead is significant. The pace of reform and investment gives the sector a unique window to lift performance, strengthen resilience and deliver lasting value – but only if we move together, with shared frameworks, clear metrics and a continued focus on outcomes.  

I look forward to working ever more closely together as we move into the new financial year. 

Australia 

Federal Budget 2026 to 2027: Sustained Infrastructure Investment 

The final quarter of FY2026 has delivered a strong suite of federal and state announcements, reinforcing infrastructure as central to economic resilience, the energy transition and housing delivery. It is increasingly positioned as a driver of productivity, decarbonisation and community outcomes. 

The 2026 to 2027 Federal Budget includes $12.1 billion in new infrastructure investment, including $10.3 billion for transport projects, $976 million for initiatives and $803 million for community infrastructure. This sits within a broader pipeline, with $8.6 billion over 11 years for nationally significant road and rail projects and $13.5 billion in Commonwealth funding to states and territories in 2026 to 2027. 

Key commitments include $3.8 billion for Suburban Rail Loop East, $1.75 billion for freight rail, $812.5 million for the Bruce Highway, $522 million for Anketell Road and $50 million for early works on the Sydney to Canberra corridor. A $2 billion Local Infrastructure Fund aims to support up to 65,000 homes. 

The shift is toward outcomes. Investment is increasingly linked to housing, emissions and system performance, requiring stronger focus on whole-of-life value, resilience and social outcomes. 

Freight, Rail and National Connectivity 

An additional $1.75 billion for freight rail brings the Australian Rail Track Corporation program to around $2.8 billion. Works include track renewal, signaling, passing loops and resilience upgrades. A $55 million program supports modal shift from road to rail and coastal shipping. 

Inland Rail is now focused on Beveridge to Parkes by 2027, enabling double stacked freight between Melbourne and Perth. The full corridor is estimated to exceed $45 billion.  

A $100 million Sydney to Canberra rail investment includes $50 million from the Commonwealth and $25 million each from New South Wales and the Australian Capital Territory. Works will target crossings, track, stations and future planning. The focus is on targeted upgrades, reliability, and network performance. 

Energy Security, Fuel and Gas Reform 

The Federal Government has introduced a $14.8 billion fuel resilience package, including $7.5 billion for a Fuel and Fertiliser Security Facility and $3.2 billion for a national reserve of around one billion litres. Fuel storage capacity will increase to about 50 days, with excise relief extended past the initial cut off date of 30 June 2026 until 2 August 2026 (but at a smaller discount of 25% from 30 June onwards).   

A domestic gas reservation scheme will begin on 1 July 2027, requiring exporters to supply 20 percent of volumes to the Australian market. Existing contracts remain protected. The policy supports supply stability during the transition to a system targeting 82 percent renewables. 

In New South Wales, planning reform will fast track priority renewable projects. Renewables currently supply around 36 percent of electricity and have exceeded 80 percent at peak periods.  

ESG, Environment and System Reform 

At the Federal level, reforms to environmental governance include the establishment of a National Environmental Protection Agency and efforts to streamline approvals processes, alongside $2.2 billion in reprioritised climate funding. These changes point to a dual objective of improving efficiency while maintaining regulatory oversight. The ISC considers this a critical moment to advance nationally consistent, outcome-focused ESG metrics across infrastructure. As governments seek to accelerate delivery, there is a growing need for transparent, auditable sustainability frameworks that can demonstrate real performance outcomes, and ISC’s tools and rating systems are well positioned to support this transition.   

New Zealand 

Auckland City Deal 

The New Zealand Government and Auckland Council have signed the country’s first Auckland City Deal establishing a long-term partnership to better coordinate investment and unlock the city’s economic potential. The agreement focuses on boosting growth, productivity, and living standards by aligning planning across transport, housing, infrastructure, and innovation. Key commitments include a 30-year transport strategy, support for major infrastructure and precinct development, and targeted initiatives to grow tourism, events and global investment.  

State Spotlight: Western Australia Budget 2026 to 2027 

The Western Australian Government’s 2026-27 State Budget, handed down in May 2026, confirms a continued focus on housing, infrastructure and economic resilience, underpinned by a projected $2.4 billion operating surplus and WA’s ongoing triple-A credit rating. Western Australia has committed to a $44.3 billion four-year asset pipeline, supported by a $2.4 billion surplus. 

A $4.7 billion housing package will deliver more than 34,000 homes, including $1.3 billion for enabling infrastructure. A $1.4 billion Clean Energy Fund will support transmission and network upgrades ahead of coal closures by 2030. Major investment continues across transport and METRONET. 

These investments are aimed at lifting system capacity, supporting population growth, enabling decarbonisation and maintaining a strong pipeline of construction and infrastructure activity across metropolitan and regional Western Australia. 

From an ISC perspective, WA exemplifies the convergence of housing, infrastructure, and energy transition, highlighting the need for integrated systems planning. The scale of investment presents a significant opportunity to embed sustainable precinct development and decarbonised infrastructure networks at scale. 

State Spotlight: Victoria Budget 2026 to 2027 

Victoria’s Budget prioritises maintenance and affordability. It includes  $1.041 billion for road maintenance, $673.6 million for trains, $481 million for regional transport and $432.5 million in fare relief. Additional funding supports bus and ferry upgrades, water infrastructure and manufacturing electrification. As of 1 November 2025, VicGrid took over responsibility from the Australian Energy Market Operator for planning Victoria’s transmission network and is now tasked with delivery of a $7.9 billion pipeline of projects under the Victorian Transmission Plan. The focus on maintenance reinforces lifecycle asset management and integrated planning.  

We are proud to announce our new partnership with AURIN – to strengthen the connection between sustainable infrastructure practice, academic research and real-world impact. 

The collaboration brings together two organisations working at the intersection of evidence, infrastructure and public value. The ISC works across industry and government to accelerate sustainability outcomes in infrastructure as it is planned, designed, built, and operated, while AURIN provides national research infrastructure that helps researchers and decision-makers access the data, tools and capability needed to address complex urban and regional challenges. 

Through this partnership, AURIN and the ISC are creating new pathways for research to inform better infrastructure planning, investment, delivery and policy. The collaboration supports a shared ambition to ensure that insights from sustainable infrastructure practice contribute to the evidence base needed to respond to national priorities, including climate adaptation, net zero transition, transport, housing, resilience, liveability and social value. 

ISC CEO Toby Kent said the partnership reflects the importance of connecting industry practice with research that supports better outcomes. 

 “Delivering more sustainable infrastructure requires strong collaboration across industry, government and research. By working with AURIN, we are helping create new pathways for sustainability insights to inform research, policy and practice in ways that support better outcomes for people, places and the environment,” Mr Kent said.

AURIN Director Professor Pascal Perez said the partnership strengthens AURIN’s role in enabling research that responds to real-world national challenges. 

“AURIN is focused on connecting researchers with the evidence and capability needed to address complex urban and regional challenges. This partnership with the ISC strengthens the bridge between infrastructure sustainability practice and research impact, supporting better-informed decisions for industry, government and communities,” Professor Perez said. 

The partnership will support academic and applied research that is more closely connected to the needs of industry, government and communities. By linking infrastructure sustainability expertise with research infrastructure capability, the collaboration will help generate insights that support more informed decisions and stronger outcomes for people, places and the environment. 

This announcement marks the beginning of a broader collaboration between AURIN and the ISC. We will now work together to shape the research access pathway and identify opportunities for future insights, research and impact. 

We look forward to sharing more as the partnership develops. 

Dear Members, 

I write during a period of global disruption — yet ISC has entered 2026 with good momentum. Our V2.2 Design and As Built rating tool has been met with strong market response, our updated training is receiving excellent feedback, and NZ Connect in early March was a great success.  

We have continued to strengthen partnerships that build practical capability across the sector. We have worked with RMIT University to embed the Infrastructure Sustainability Accredited Program into its Master of Project Management, equipping students to enter the workforce, or continue advancing their careers, as qualified ISAPS. We have partnered with ConnellGriffin to deepen practical application of Sustainable procurement,and with AECOM to support organisations to respond to evolving expectations around nature-related financial disclosures.

Of course, global events do weigh heavy: the human, environmental and economic toll is significant, and every leader I speak with feels, or fears, their local impacts acutely. But disruption also sharpens priorities. Pressure on supply chains and renewed inflationary forces from the Middle East make the case for what ISC has always championed: efficient use of materials, renewable energy, innovation, and local content. This moment demands exactly what our ratings system incentivises. Added to these considerations are the consistent cost savings being demonstrated by IS rated projects.  Now is the time to lean in. 

I am acutely aware of the concern our call on members created at the end of last year. That message was not sent lightly. Working with the Board, I determined that transparency was the right course to keep members informed and forewarned about cashflow challenges ahead of the quieter summer period. I am pleased to report that prudent management, a strong uptick in ratings registrations, and our events and training have seen us begin the year from a restored footing. My sincere thanks to every organisation that stepped up or considered doing so. 

The best organisations rise to challenges, and ISC is doing precisely that. We are focused on evolving ISC to meet the market and to ensure our members and users derive maximum value from working with us. 

As many of you know, at the end of this month, we will sadly farewell Jane Nicholls after six outstanding years with the ISC. While Jane has decided to pursue new opportunities, during her time with us, she has been a valued member of the leadership team, a trusted advisor, and a builder and holder of strong relationships across our membership. We will miss Jane, but look forward to her remaining a friend of the ISC, and we wish her every success and happiness in her new endeavours. 

As always, I welcome your feedback and suggestions, so please be in touch any time. – Toby Kent, Chief Executive Officer, ISC 

Industry Insights and Reflections from Australia, Aotearoa New Zealand and Beyond 

The first months of 2026 show a clear shift toward long–term resilience, climate alignment and more coordinated planning across horizontal infrastructure in Australia and Aotearoa New Zealand.  

New Zealand: System Reform and Strategic Positioning 

On 16 February,Te Waihanga – the Infrastructure Commission – released the National Infrastructure Plan, which sets a 30-year direction for how New Zealand invests, maintains, and sequences essential networks. It prioritises addressing hospital and water‑sector pressures; improving transport efficiency; strengthening asset renewals and climate resilience; and supporting long‑term growth through planning reform; corridor‑focused development; and electrification‑ready settings. The Plan encourages agencies to address their most pressing network constraints first, and to combine asset renewals with climate adaptation and targeted capacity growth to reduce lifecycle risk.  

Te Waihanga also released new Senior Responsible Ownership Guidance, strengthening leadership expectations of those overseeing major public investments. This has direct implications for horizontal infrastructure, where governance capability often determines whether long‑term integrated planning can be put into practice. 

Amendments to the Climate Change Response Act will be introduced later this year, reshaping how climate risk is assessed across New Zealand’s transport corridors, energy networks, and water systems. These changes sit alongside adjustments to the climate‑related disclosure system. From 31 March 2026, the system will lift the threshold for listed issuers from NZD 60 million to NZD 1 billion and remove managed investment scheme managers. Although fewer organisations will be required to report, those that remain include many of New Zealand’s significant infrastructure owners, reinforcing expectations for climate‑aligned investment decisions

Alongside the release of the National Infrastructure Plan, Aotearoa Circle launched their Natural Infrastructure Plan, including at ISC’s New Zealand Connect conference. The Plan positions wetlands, forests, dunes, waterways and soils as core infrastructure that deliver measurable economic benefits. It provides resources and business cases that demonstrate how nature‑based solutions can reduce flood and erosion risk, strengthen long‑term economic resilience and complement traditional infrastructure investment.  

Australia: Infrastructure Priorities and Energy Transition

Infrastructure Australia released the 2026 Infrastructure Priority List on 11 March, identifying nationally significant proposals to guide Commonwealth investment over the next decade. The list is more selective than in previous years and focuses on where federal involvement will have the greatest impact. Priority areas include freight productivity, port and intermodal capacity, urban transport, water security and infrastructure supporting the clean‑energy transition. The sequencing is designed to match government priorities with market capacity and to support stable long‑term delivery. 

Australia’s energy transition continues to be shaped by the Annual Climate Change Statement 2025. With renewable generation now exceeding forty percent in major grids, the Capacity Investment Scheme is on track to deliver 40GW of new renewable capacity in the next 10 years, and a national target of up to seventy percent emissions reduction by 2035, the country’s transition pathway is increasingly tied to the performance of its horizontal infrastructure networks.  

Transmission remains the biggest constraint, as large‑scale renewable projects outpace the delivery of high‑voltage corridors. Industry analysis by WSP highlights the importance of unlocking renewable‑energy zones, improving approval processes and coordinating work across all levels of government. An integrated approach to the planning of land use, water, and energy networks is increasingly being adopted, supported by digital planning tools. 

Sustainable Finance and Risk Management 

Market and policy signals point to climate risk becoming a core component of system‑level risk management. Physical climate risk, insurability and adaptation are now factors that influence financing for infrastructure. In Australia, the regulator-led Insurance Climate Vulnerability Assessment is modelling how different climate scenarios may affect insurance affordability through to 2050.The Insurance Council of Australia has recently proposed large‑scale, co‑funded flood‑defence and buy‑back programs, signalling that insurance pressures are becoming a public finance issue. In New Zealand, prudential guidance from the Reserve Bank to embed climate risk in governance reinforces the need for infrastructure owners to demonstrate resilience in order to maintain investor and community confidence. 

Infrastructure Pipeline Activity 

The ANZIP pipeline shows targeted movement in both countries. In New Zealand, recent updates to the Belfast to Pegasus Motorway and Woodend Bypass reflect ongoing work to improve capacity and safety along a key inter‑regional corridor. In Australia, the addition of the Gold Coast Advanced Resource Recovery Centre highlights growing investment in waste system transformation and the circular economy. Though not a transport or energy project, it will contribute to the broader horizontal infrastructure system by reducing pressure on landfill and improving regional waste resilience. 

Global Context with Local Implications 

International outlooks from S&P Global highlight escalating disruption from extreme weather and ongoing tension between energy security and decarbonisation as key issues affecting the infrastructure sector. AI infrastructure, such as data centres, is uniquely vulnerable to climate risks such as heatwaves and water shortages. This is relevant for Australia and New Zealand, both managing ageing networks and growing climate volatility. In both countries, where digital connectivity is critical to economic performance and emergency management, there is a need for integrated planning and a strong resilience focus across energy and water networks that serve digital infrastructure hubs. 

Following the US–Israel strikes on Iran in February, shipping movements in the Middle East have experienced disruption. This is likely to increase fuel costs and lengthen delivery times for materials and freight moving through global supply chains. 

What an energising two days at ISC Connect NZ 2026 in hashtag#Wellington! Our gathering truly showcased how Aotearoa New Zealand is reshaping the future of infrastructure through responsibility, resilience, and regeneration.

Over 4–5 March, the Infrastructure Sustainability Council (ISC) brought industry and government together with a shared purpose: to accelerate infrastructure that delivers value today while safeguarding tomorrow.

From the moment the site tours kicked off at CentrePort and Te Ara Tupua, it was clear this year’s program was designed to ground big ideas in real‑world impact. We heard directly from leadership and delivery teams about the sustainability outcomes being achieved and how these supported substantial economic wins.

▪️ Across Thursday’s sessions, the conversations offered a great mix of policy, evidence and ambition. The Minister for Infrastructure spoke of unblocking pathways to more productive delivery, while the opening panellists implored us to invest in nature alongside the built environment to meet our objectives. Our Technical streams offered deep dives into transport, energy, water, and urban development – each highlighting the ingenuity already emerging across Aotearoa.

▪️ A standout theme was the integration of First Nations knowledge systems, reminding us that sustainable infrastructure isn’t just about engineering excellence – it’s about cultural respect, community partnership, and long‑term stewardship.

▪️ The networking moments – from the welcome function to the closing certification celebration – reinforced the strength of the IS community. Recognising transport and water projects that achieved IS Ratings at the Certification Function was a powerful reminder of what’s possible when sustainability is embedded from the ground up.

ISC Connect NZ 2026 left us hashtag#inspired, hashtag#connected, and hashtag#ready to push harder for infrastructure that is resilient, economical, and transformational.

Looking forward to 2027!

See the full photo highlights via the link below:

ConnectNZ 2026 Photo Gallery