Working Paper: Financing for Disaster and Climate Resilient Infrastructure for a Net-Zero Economic Transition
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Extreme physical climate events like floods, droughts, heat waves are becoming more common in countries around the world, and tropical illnesses are spreading at an increasing rate. It is anticipated that these changes will impact fundamental services, infrastructure, housing, income, way of life, food, health, and other areas. So, while planning, constructing, and building infrastructure, extreme climate change events and disasters must be given a due consideration. Hence parallel focus towards developing infrastructure which is resilient, and decarbonisation of economy is the need of the hour. This becomes even more daunting task for low- and middle-income countries (LMIC)2 s- with limited resources balancing the need of decarbonisation, resilience, and economic development. According to a World Bank estimate emerging economies would need to invest around 4.5% of their GDP to achieve SDG 2030 targets, another estimate by IEA estimates a global investment of over US$ 2 trillion per year is required to achieve net zero by 2050. 3 Amongst the LMIC countries, least developed countries, the landlocked developing countries, and the small island developing states are the most vulnerable countries to extreme climate events and lack adequate public resources to develop infrastructure which is both net zero compliant as well as resilient. |