India faces a colossal financial challenge to build climate resilience (climate-proof) in its rapidly expanding urban areas. A new report, released by World Resources Institute (WRI) India and GIZ, estimates the nation may need up to $13.4 trillion by 2070. This massive investment is crucial for preparing cities for escalating climate risks like floods, heatwaves, and other extreme weather events.
The World Bank also recently highlighted this critical need. Its report, “Towards Resilient and Prosperous Cities in India,” projects that India requires $2.4 trillion by 2050 for urban infrastructure, rising to $10.9 trillion by 2070 under a conservative urbanization scenario. These figures underscore the urgency, especially since over 50% of the urban infrastructure needed by 2050 is yet to be built.
Current spending on urban infrastructure, at just 0.7% of GDP, is significantly lower than required. Annual economic losses from rain-related flooding, currently $4 billion, could surge to between $14 billion and $30 billion by 2070 without intervention. Cities like Delhi, Chennai, Surat, and Lucknow are particularly vulnerable to heat stress and flood risks.
Addressing this funding gap demands a multi-pronged approach. Boosting private sector investment through mechanisms like green bonds and blended finance is crucial. Strengthening the financial autonomy of urban local bodies and improving their capacity for project planning are also vital. India has a critical opportunity to embed resilience into its future urban development, averting substantial economic losses and saving lives.
