A biennial report from the Coalition for Disaster Resilient Infrastructure (CDRI)
has disclosed that the world’s infrastructure is enduring an annual average loss
(AAL) of between USD 301 billion and USD 330 billion due to disasters and
climate change. This considerable loss underscores the vulnerability of critical
infrastructure to the impacts of a changing climate.
When considering health and education infrastructure, along with building
stock, the estimated annual losses widen to a range of USD 732 billion to USD
845 billion. This expanded figure accounts for nearly one-seventh of global
GDP growth during the financial year 2021-2022. Alarmingly, nearly half of
this contingent liability is shouldered by low- and middle-income countries,
intensifying the challenges they face.
The report underscores the complex challenges confronting low- and middle-
income countries, including a substantial infrastructure deficit that hampers
social and economic development. Furthermore, these regions struggle with
precarious and low-quality infrastructure due to deficiencies in infrastructure
governance.
Extreme climate hazards exacerbate disaster risks, amplify asset loss and
service disruption, and lead to reduced functionality of existing infrastructure.
Despite a growing emphasis on climate change mitigation, particularly in
sectors like energy and transport, the report reveals that the global average AAL
in infrastructure stands at the staggering USD 301 billion to USD 330 billion.
These findings underscore the pressing need for increased investments in
climate-resilient infrastructure. While efforts to reduce carbon emissions gain
momentum, it&’s equally crucial to address the vulnerabilities of existing
infrastructure to climate-related risks.
