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Climate Change Causes $732 – $845 Bn Annual Loss In Infrastructure Globally: CDRI Report

By Outlook Planet Desk October 07, 2023

The report highlights that the annual investment required to address the infrastructure deficit, achieve the SDGs, achieve net zero and strengthen resilience by 2050 amounts to $9.2 trillion, of which $2.84 - $2.90 trillion must be invested in LMICs

Climate Change Causes $732 – $845 Bn Annual Loss In Infrastructure Globally: CDRI Report
The report presents a compelling economic, financial and political imperative for investing in resilience, based on a new cutting-edge Global Infrastructure Risk Model and Resilience Index (GIRI). CDRI
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The global Average Annual Loss (AAL) in infrastructure sectors and buildings is now in a range of $732 – $845 billion taking into account climate change, which implies that 14% of 2021 - 2022 GDP growth is at risk, according to the biennial report on Global Infrastructure Resilience: Capturing the Resilience Dividend launched by the Coalition for Disaster Resilient Infrastructure (CDRI).

The report presents a compelling economic, financial and political imperative for investing in resilience, based on a new cutting-edge Global Infrastructure Risk Model and Resilience Index (GIRI). GIRI is the first publicly available and fully probabilistic risk model to estimate risk for infrastructure assets with respect to most major geological and climate-related hazards.

Analysing 9 infrastructure sectors across 6 hazard types, the report reveals that approximately 30% of the AAL is associated with hazards like earthquakes & tsunamis, whereas 70% is associated with climate related hazards like cyclones, floods, storms etc. It also suggests that the risk is not spread equally across sectors.

Low-and middle-income countries (LMICs) carry the highest relative risk with a relative AAL of between 0.31 and 0.41 % compared to 0.14 % in high income countries.

The report highlights that the annual investment required to address the infrastructure deficit, achieve the SDGs, achieve net zero and strengthen resilience by 2050 amounts to $9.2 trillion, of which $2.84 - $2.90 trillion must be invested in LMICs.

Kamal Kishore, member and HoD, NDMA and co-chair executive committee, CDRI said, “The report is accompanied by a tool which countries can use to do deep dive analysis to inform their decision making, inform their infrastructure investment decisions, invest in resilience, and build infrastructure systems that last long and serve generations to come.”

The report emphasises on Nature-based Infrastructure Solutions (NbIS) as a novel and pragmatic approach for infrastructure resilience, along with the need to facilitate development of coherent national resilient strategies and project pipelines that effectively transform risk into resilience.

The coordinating lead author of the Report, Andrew Maskrey said, “Governments can use this report to understand the risk they face, and to realise that it is critical to ensure that all future infrastructure is fully resilient. The report takes climate change into account and provides recommendations on strengthening resilience.”

CDRI places this report at the service of governments, investors and other stakeholders with an intention to further the dialogue on how to implement its key recommendations and for deepening global collaboration towards the common goal of strengthening infrastructure resilience.

Launched by Prime Minister Narendra Modi at the UN Climate Action Summit at New York in 2019, the Coalition for Disaster Resilient Infrastructure (CDRI) is a partnership of national governments, UN agencies and programmes, multilateral development banks and financing mechanisms, the private sector and academia that aims to promote the resilience of new and existing infrastructure systems to climate and disaster risks in support of sustainable development.

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