Resilient infrastructure could halve GDP losses after disasters, CDRI warns in new global report

Belem (Brazil), Nov 17 (PTI) Investing in resilient infrastructure could cut economic losses from disasters by half by 2050, according to a new global assessment released at COP30 by the Coalition for Disaster Resilient Infrastructure (CDRI).

The Global Infrastructure Resilience (GIR) Report 2025 warned that the true economic impact of climate-related shocks is far greater than previously recognised, and calls for resilience to become a non-negotiable global standard as countries race to build next-generation infrastructure.

CDRI’s analysis covering Bangladesh, Barbados, Bhutan, Fiji, Ghana, Kenya, Madagascar and the Philippines showed that infrastructure disruptions alone account for 80 per cent of total disaster-related losses in these climate-vulnerable nations.

While physical damage from floods, cyclones or storms may be visible, the report finds that the knock-on effects across supply chains, labour markets and public services can be over seven times more costly.

Without urgent course correction, the economic fallout could be severe. Annual GDP losses may rise to 14.5 per cent in Bangladesh and 12.9 per cent in the Philippines by mid-century, with average losses across the eight countries increasing from 5.2 per cent today to 7.4 per cent by 2050.

The report stresses that building resilient infrastructure delivers some of the highest returns on investment in the climate sector. Up to USD 800 billion worth of infrastructure assets are exposed to disasters each year, placing 14 per cent of global GDP growth at risk.

CDRI’s modelling shows that rapid and well-planned reconstruction can dramatically reduce long-term economic harm.

Rebuilding within 10 years can halve GDP losses from over 7 per cent to about 3 per cent while completing recovery within four years can reduce losses to just over 2 per cent.

Meanwhile, incorporating resilience into infrastructure design increases project costs by only 5-15 per cent, but produces returns seven to twelve times greater, the report notes.

Despite rising risks, CDRI’s global survey of business leaders revealed that industries remain poorly prepared. Sixty-one percent of infrastructure companies allocate less than 10 per cent of their budgets to resilience, while a quarter allocate nothing at all.

A lack of ring-fenced funding, especially during early planning stages, continues to delay essential upgrades.

With most of the infrastructure required by 2050 yet to be built, CDRI urged governments, financial institutions and private firms to mainstream resilience in policy, planning and investment.

“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,” said Amit Prothi, Director General of CDRI.

“Now is the time to embed resilience into national planning and policy to safeguard future prosperity.” The 61-member Coalition, headquartered in New Delhi, has supported 183 projects and funded over 200 research initiatives since its inception in 2019.

The GIR 2025 draws on insights from more than 3,000 experts in over 100 countries and uses the Green Economy Model to assess macroeconomic risks in climate-stressed regions.

The latest edition builds on CDRI’s inaugural report, which found that average annual losses to global infrastructure and buildings already exceed USD 700 billion, with low- and middle-income nations bearing a disproportionate share of the burden despite owning fewer exposed assets. PTI UZM GSP GSP