India needs to invest over $2.4 trillion by 2050 to develop climate-resilient urban infrastructure, as extreme weather linked to climate change poses increasing challenges for its rapidly expanding cities, the World Bank stated on Tuesday.
India faces a monumental task as it endeavors to equip its burgeoning urban areas against the impacts of climate change, necessitating an investment of more than $2.4 trillion by 2050. The World Bank report underscores that the nation’s cities, home to a population expected to nearly double to 951 million by 2050, are increasingly at risk due to erratic weather patterns and rising sea levels.
The report, titled “Towards Resilient and Prosperous Cities in India,” emphasizes the urgency of large-scale investments in critical urban infrastructure such as housing, transportation, water systems, and waste management. Absent these investments, the nation could incur escalating costs arising from weather-related damages. Auguste Tano Kouame, the World Bank’s country director for India, highlighted the need for cities to bolster their resilience to ensure the safety of their residents, during the report’s launch, which was developed in partnership with India’s urban development ministry.
Urban flooding already results in significant financial losses, costing India approximately $4 billion annually. This figure is expected to rise to $5 billion by 2030 and could soar to $30 billion by 2070 if no corrective measures are implemented.
The World Bank’s projections, based on conservative urban population growth models, estimate that infrastructure investment needs could reach $10.9 trillion by 2070. These projections increase to $2.8 trillion and $13.4 trillion, respectively, under a scenario of moderate urbanization.
The World Bank’s report advocates for timely interventions which could prevent billions in annual losses due to flooding and extreme temperatures. Investing in resilient and efficient municipal infrastructure and services is paramount, according to the findings.
Currently, India allocates approximately 0.7% of its gross domestic product to urban infrastructure— a figure below global standards. The report urges a substantial increase in public and private financial flows to meet this shortfall. To achieve the necessary improvements in urban infrastructure, the report calls for greater coordination among federal, state, and municipal governments, including enhancing project financing and instituting climate-linked fiscal transfers.
In addition, the World Bank underscores the need for India to expand partnerships with the private sector, particularly in fields such as energy-efficient water supply, sanitation, waste management, and the construction of green buildings. Presently, private investment constitutes a mere 5% of total urban infrastructure investment.
According to News India Times, addressing these challenges is critical not only for mitigating future economic losses but also for ensuring the safety and sustainability of urban centers nationwide.
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