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Belém (Brazil), Nov 17 (IANS) Investing in resilient infrastructure could halve GDP losses from disasters between now and 2050, according to new modeling released on Monday at the ongoing COP30 by the New Delhi-based Coalition for Disaster Resilient Infrastructure.
CDRI analyzed the macroeconomic impact of climate-related disasters in a representative sample of eight climate-vulnerable countries – Bangladesh, Barbados, Bhutan, Fiji, Ghana, Kenya, Madagascar and the Philippines.
Key findings include infrastructure disruption accounting for 80 percent of disaster-related losses in eight countries; The true economic cost of infrastructure failure can be more than seven times the physical damage; And without immediate investment, annual GDP losses by 2050 could reach 14.5 percent in Bangladesh and 12.9 percent in the Philippines, rising from an average of 5.2 to 7.4 percent.
With up to $800 billion worth of infrastructure assets exposed to disasters each year and 14 percent of global GDP growth at risk, increasing resilience now can protect economies.
According to the report, once a disaster hits, reconstruction in 10 years can halve long-term GDP losses from seven percent to just three percent, while completing recovery in just four years reduces it to just over two percent.
CDRI’s extensive research shows that building disaster-resilient infrastructure increases project costs by only five to 15 percent, while returns are seven to 12 times higher.
The report includes results from CDRI’s global survey of business leaders, which shows that 61 percent of infrastructure companies allocate less than 10 percent of their budget to resilience, while 24 percent do not allocate any at all.
The survey found that the absence of a dedicated, ring-fenced budget limits early-stage preparedness and the ability to proactively strengthen infrastructure before disasters strike.
Much of the infrastructure the world will need by 2050 has still to be built. As trillions of dollars are raised to deliver this next generation infrastructure, CDRI is urging governments, financial institutions and the private sector to make resilience a non-negotiable standard.
Responding to the report, CDRI Director General Amit Prothi said: “Resilient infrastructure is a catalyst for sustainable development. Every dollar invested in resilience pays off many times over by protecting lives, livelihoods and public finances. Now is the time to embed resilience in national planning and policy to safeguard future prosperity.”
–IANS
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