A biennial report from the Coalition for Disaster Resilient Infrastructure (CDRI) has disclosed that the world’s infrastructure is enduring an annual average loss between $301 billion and $330 billion due to disasters and climate change.
When considering health and education infrastructure, along with building stock, the estimated annual losses widen to a range of $732 billion to $845 billion. This expanded figure accounts for nearly one-seventh of global GDP growth during the financial year 2021-2022.
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 $301 billion to $330 billion.
While efforts to reduce carbon emissions gain momentum, it’s equally crucial to address the vulnerabilities of existing infrastructure to climate-related risks. The report serves as a stark reminder of the importance of integrating climate resilience into infrastructure planning, design, and maintenance.