World Loses Up to $800bn Infrastructure to Disasters Annually — CDRI

 

The Director General of the Coalition for Disaster Resilient Infrastructure (CDRI), Amit Prothi, has said the world loses between $700 billion and $800 billion worth of infrastructure annually to natural disasters.

Prothi disclosed this while addressing international journalists covering the BRICS meetings in New Delhi, India, stressing the need for governments to strengthen infrastructure resilience as climate change increases the frequency and severity of disasters.

He said the estimated figure represented only the direct physical damage, while the wider economic impact was about seven times higher.

“On average, we lose about $700 to $800 billion of infrastructure every year. That’s only the direct damage. The economic cost of that damage is roughly seven times higher,” he said.

Prothi cited wildfires in Los Angeles, floods, earthquakes and cyclones in different parts of the world as examples of disasters causing increasing damage to critical infrastructure.

The CDRI was launched by India in 2019 at the United Nations in New York to promote global cooperation on disaster-resilient infrastructure.

According to Prothi, the coalition has grown from 24 founding members to 70, with the Philippines expected to become the 71st member.

He said the organisation brings together countries from Africa, Asia, Europe, the Americas and the Pacific, as well as multilateral institutions including the World Bank and regional development banks.

Prothi explained that CDRI's role was to share knowledge, practices and experiences to help countries understand and manage growing disaster risks.

India remains the permanent co-chair, while the second co-chair rotates every two years. Previous co-chairs include the United Kingdom, United States and France, while India and Brazil currently lead the coalition.

Prothi said CDRI does not directly finance infrastructure projects but supports governments in integrating resilience into infrastructure planning, design and development.

Using an analogy, he described CDRI as “the chilli in the soup,” saying the coalition helps countries assess how roads, electricity systems, telecommunications and other infrastructure can withstand future climate and disaster risks.

He urged governments to review conventional building standards and infrastructure codes because changing climate patterns were creating risks that had not previously been experienced in many locations.

The CDRI chief identified telecommunications, power and transport infrastructure among sectors requiring greater attention.

Recalling the 2015 earthquake in Nepal, he said the collapse of telecommunications infrastructure demonstrated the critical role of communication systems during emergencies.

“I was in Kathmandu during the earthquake and could send a brief message to my family. Others couldn’t contact their loved ones because telecommunications infrastructure had broken down,” he said.

He said CDRI was also assisting governments in assessing risks to electricity and transportation systems and incorporating risk data into infrastructure planning.

Prothi said CDRI had become a technical partner to major international platforms, including the G20, BRICS, COP climate conferences and the United Nations.

He noted that during India's G20 presidency, CDRI supported the establishment of the Disaster Risk Reduction and Resilient Infrastructure Working Group, with the initiative continuing under Brazil's presidency.

According to him, the growing global focus on climate adaptation has made resilient infrastructure increasingly important.

Prothi also called for faster reconstruction after disasters, saying resilience should cover not only preparedness but also recovery.

He questioned the wide differences in recovery periods between countries following major disasters, noting that prolonged reconstruction worsens the social and economic consequences of disasters.

“The speed of recovery matters. The longer it takes countries to rebuild, the greater the impact on communities and national economies,” he said.

He disclosed that discussions were ongoing on innovative financing options, including insurance and private-sector participation, to enable countries to mobilise reconstruction funds more quickly.

Prothi said CDRI had developed a global risk database capable of estimating infrastructure losses across countries and sectors.

He cited Brazil's average annual infrastructure losses at about $13 billion, while noting that Africa's losses were estimated at a comparable level.

He said the database would enable governments to identify vulnerable infrastructure and develop measures tailored to specific risks.

Looking ahead, Prothi said CDRI would focus increasingly on Africa, small island developing states, mountain regions and cities facing complex climate and disaster risks.

He also identified artificial intelligence, satellite data and advanced modelling as emerging tools for strengthening early warning systems and disaster preparedness.

Prothi further called for greater participation by ASEAN countries, saying their experience in managing earthquakes, tsunamis, floods and other hazards could provide valuable lessons for countries around the world.

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