World Loses Up To $800bn In Infrastructure To Disasters Annually – CDRI

The world loses between $700 billion and $800 billion worth of infrastructure to natural disasters every year, with the wider economic impact estimated at several times the value of the physical damage, the Director General of the Coalition for Disaster Resilient Infrastructure (CDRI), Amit Prothi, has said.

Prothi disclosed this while addressing international journalists covering the BRICS meetings in New Delhi, warning that intensifying climate risks were making it increasingly urgent for governments to build infrastructure capable of withstanding floods, cyclones, earthquakes, wildfires and other disasters.

“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.

He cited recent wildfires in Los Angeles, as well as floods, earthquakes and cyclones in different parts of the world, as evidence of the growing pressure disasters are placing on critical infrastructure and national economies.

Prothi said governments must move beyond conventional infrastructure planning and factor changing climate and disaster patterns into the design and construction of roads, power systems, telecommunications networks and other critical assets.

According to him, CDRI does not directly finance infrastructure projects but works with governments to incorporate resilience into infrastructure planning, investment and design.

“When countries build roads, power systems or telecommunications networks, we help them understand how those investments can withstand future risks from climate change and disasters,” he said.

He noted that infrastructure standards and building codes based solely on historical weather patterns could become inadequate as climate conditions change.

Prothi also stressed the importance of resilient telecommunications, recalling his experience during Nepal’s devastating 2015 earthquake, when the collapse of communication infrastructure prevented many people from contacting their families.

“Communication is becoming increasingly critical during disasters,” he said, adding that CDRI was working with governments to assess risks to telecommunications, energy and transport systems.

CDRI Expands Global Reach

Launched by India in 2019 at the United Nations in New York, CDRI has grown from 24 founding members to 70 members, with the Philippines expected to become the coalition’s 71st member.

The coalition brings together countries from Africa, Asia, Europe, the Americas and the Pacific, alongside multilateral institutions including the World Bank and regional development banks.

Prothi said the coalition was established to bring countries together to share knowledge, expertise and practical experience in addressing increasingly complex disaster risks.

India remains a permanent co-chair of CDRI, while the second co-chair rotates every two years. Previous co-chairs have included the United Kingdom, the United States and France, while India and Brazil currently lead the organisation.

BRICS, G20 Resilience Agenda

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

He said the coalition supported the establishment of the Disaster Risk Reduction and Resilient Infrastructure Working Group during India’s G20 presidency, with the initiative continuing under Brazil’s presidency.

He argued that as international discussions increasingly shift from climate mitigation towards adaptation and resilience, disaster-resilient infrastructure would become even more important to the Global South.

Faster Recovery Needed

Beyond preventing infrastructure damage, Prothi said countries must improve their ability to recover quickly after disasters.

He questioned why some countries were able to rebuild critical infrastructure within relatively short periods while others could take more than a decade to recover from major 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 around innovative financing mechanisms, including insurance and greater private-sector participation, to enable countries to secure reconstruction funds more quickly after disasters.

Data, AI To Drive Resilience

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

He cited Brazil, where average annual infrastructure losses were estimated at about $13 billion, and said Africa faced losses on a comparable scale.

The database, he explained, enables governments to identify vulnerabilities and develop resilience strategies suited to specific infrastructure sectors.

He said CDRI was also exploring the use of artificial intelligence, satellite data and advanced modelling to improve risk assessment, early warning systems and disaster preparedness.

Looking ahead, Prothi said the coalition would intensify programmes targeting Africa, small island developing states, mountain regions and cities, where climate and disaster risks are becoming increasingly complex.

He also called for greater participation by ASEAN countries, saying their experience in managing earthquakes, tsunamis, floods and other hazards could provide valuable lessons for other regions.