Mainstreaming Disaster Resilience into Infrastructure Project Report:
India is mainstreaming disaster resilience to protect its $4.51 trillion infrastructure pipeline and public finances from escalating climate risks that cost the country up to 2% of its GDP annually.The report is a strategic study by the Coalition for Disaster Resilient Infrastructure (CDRI), developed in partnership with India’s Department of Economic Affairs (DEA) and Ministry of Finance.It provides a framework for integrating climate-risk assessments and resilience measures into the National Infrastructure Pipeline (NIP), focusing on sectors like roads, power, and rail.
Key Findings:
- Economic Impact: Disasters cost India approximately US$ 31.59 billion in average annual losses for infrastructure assets.
- Fiscal Erosion: Natural hazards can erode government revenues by as much as 12% and reduce annual GDP by up to 2%.
- Sectoral Exposure: The Roads, Power, and Rail sectors are identified as the most exposed to climate and disaster risks.
- High Return on Investment: Pilot applications of the Resilience Cost-Benefit Analysis (CBA) tool show returns of up to 12 times the initial investment.
- Infrastructure Value at Risk: India’s development goals, including a $4.51 trillion infrastructure pipeline by 2030, are at risk without mainstreaming resilience.
- Financing Gaps: Current mechanisms like the State/National Disaster Response Funds focus on relief rather than the long-term reconstruction of public assets.
- Contractual Gaps: Existing standard agreements (EPC and PPP) often lack clear allocation of foreseeable disaster risks.
