New research from CDRI shows the true impact of disasters can be seven times greater than immediate physical damage. 61-member Coalition calls for action to make resilient infrastructure the new global standard
Investing in resilient infrastructure could cut GDP losses from disasters by half between now and 2050, according to new modelling released today at COP30 by the New Delhi-based Coalition for Disaster Resilient Infrastructure.
CDRI has analysed the broader economic impact of climate-related disasters across a representative sample of eight climate-vulnerable countries: Bangladesh, Barbados, Bhutan, Fiji, Ghana, Kenya, Madagascar, and the Philippines.
Key findings include:
- Infrastructure disruptions account for 80% of disaster-related losses across the eight nations.
- The true economic cost of infrastructure failure can exceed physical damage by more than seven times.
- Without urgent investment, annual GDP losses could reach 14.5% in Bangladesh and 12.9% in the Philippines by 2050, with the average rising from 5.2% to 7.4%.
Unlocking the Resilience Dividend: Big Returns from Smart Investments
With up to $800 billion in infrastructure assets exposed to disasters each year and 14 percent of global GDP growth at risk, increasing resilience now can safeguard economies. According to the report, once a disaster has occurred, reconstruction over ten years can halve long-term GDP losses from more than seven percent to just three percent, while completing recovery in just four years cuts this further to just over two percent. Wider research by CDRI indicates that building disaster resilient infrastructure increases project costs by only five to fifteen percent, while delivering returns that are seven to twelve times greater.
The View from the Global Business Community
Included within the report are the results of CDRI’s global survey of business leaders, which shows 61% of infrastructure companies allocate less than 10% of their budgets to resilience, while 24% allocate nothing at all. The survey found that the absence of dedicated, ring-fenced budgets continues to limit early-stage preparedness and restricts the ability to proactively strengthen infrastructure before disasters strike.
A Global Call to Action
Most of the infrastructure the world will need by 2050 is still to be built. As trillions are mobilized to deliver this next-generation infrastructure, CDRI is urging governments, financial institutions, and the private sector to make resilience a non-negotiable standard.
Amit Prothi, Director General of CDRI, said: “Resilient infrastructure is a catalyst for sustainable growth. Every dollar invested in resilience pays for itself many times over, protecting lives, livelihoods, and public finances. Now is the time to embed resilience into national planning and policy to safeguard future prosperity.”
