New Delhi [India], November 21 : A report by Boston Consulting Group (BCG) and the Coalition for Disaster Resilient Infrastructure (CDRI) highlights a USD 4.5 billion opportunity for India to strengthen its transport infrastructure against climate risks by 2030.
With South Asia facing significant exposure to climate-related disasters, the report underscores the urgent need for resilience measures to protect critical assets and support sustainable economic growth in the region.
South Asia faces severe climate risks, with over USD 2 trillion worth of infrastructure assets exposed to disasters such as floods, cyclones, and heatwaves.
Alarmingly, 30 per cent of this exposure is tied to the transport sector. In India alone, USD 400 billion worth of transport assets are at risk, highlighting the necessity for immediate resilience measures to safeguard critical infrastructure and ensure sustainable growth.
Transport infrastructure, vital to South Asia's economy, is particularly vulnerable. Globally, it represents over 50 per cent of exposed infrastructure assets valued at USD 90 trillion as of 2022.
Climate-related disruptions could significantly affect agriculture, manufacturing, and supply chains, threatening 4-8 per cent of South Asia's GDP. With disasters in 2023 causing USD 202 billion in global damages, the cost of inaction is mounting.
"The climate challenges facing South Asia are immense, but so are the opportunities. By reimagining transport infrastructure through a resilience lens, we can unlock significant economic, environmental, and societal dividends for the region," said Amit Prothi, Director General of CDRI.
India is already taking steps to combat climate risks and plans to submit its first national adaptation strategy next year.
The report estimates that resilience measures in South Asia's transport sector could prevent over USD 1 billion in damages annually, delivering economic, social, and environmental dividends for the region.
"With USD 400 Billion worth transport assets in India being severely exposed to the perils of disaster and climate change, rapid deployment of resilience measures is a must; innovation has a major role to play," said Vineet Vijayavargia, Managing Director and Partner at BCG.
Encouraging corporate participation through incentives can drive investments in resilience. Despite progress, resilience financing currently accounts for only 20-30 per cent of the USD 215-USD 387 billion needed annually in developing countries by 2030.
"India accounting for 80 per cent of the South Asian region's asset exposure to geo climatic hazards stands at an opportune moment to avert significant infrastructure losses by adopting an integrated approach to embed resilience across existing and planned projects", stated Anirban Mukherjee, Managing Director and Partner at BCG.