Island countries are set to be buffeted by major global changes, a report from KPMG has warned.

The Emerging Trends in Infrastructure report from the professional services firm spotlighted ten global trends, many of which “underscore a drive for more responsible leadership, both from the public and private sectors, to improve approaches in funding, developing and operating infrastructure.”

James Stewart, KPMG’s global infrastructure chairman and a partner in KPMG UK, said: “Political agendas and social expectations are changing.

“Global, regional and national institutions are weakening. Power is shifting and technology is disrupting everything. And infrastructure is at the centre of this evolution.”

The report said that changes in technology, transportation and energy created a chance for island nations to capitalise on trends that were in the past not possible due to scale.

It highlighted the falling cost of solar power and better storage as good news for islands like Bermuda, that struggle with high energy costs.

The report added that political changes, including in the US and Europe, would affect infrastructure markets globally and regionally with competition for expert builders and investors.

The report said: “The short to medium-term result is it may lead to greater pressure on limited infrastructure expertise and infrastructure investment.

“Island jurisdictions may find it increasingly challenging to attract the specialist expertise needed to be an effective counterparty at the same time that governments will be at a disadvantage in terms of competing for infrastructure investment.

“A counterbalance is increased protectionism by large nations may free up global talent.”

The report added that investors were now more focused on social and environmental returns, rather than just profits.

KPMG said that was good news for smaller countries like Bermuda, because developers would be forced to become more green, raising standards from which island jurisdictions could benefit.

The report added that Chinese state-owned businesses entering the open market could prove useful in allowing island countries to “harness competitive pressure to improve deal terms” without alienating traditional partners.

Lori Rockhead, senior manager, KPMG advisory, said: “Global trends have far-reaching implications for island jurisdictions.

“Certainly, technological innovation, alternative energy developments and a heightened focus on social and environmental impacts are among the trends island governments will want to pay close attention to.”