ICDRI 2021: Finance for Resilient Infrastructure
Climate change and related hazards have rapidly evolved from being perceived as a long- and medium-term concern to an immediate threat to social and economic continuity worldwide. As exposure to these risks are only expected to grow over the next few decades, ensuring that both existing and new investments in infrastructure can perform their function under such circumstances, is critical. In parallel to the growth in exposure is the growth in infrastructure investment needs, often under-funded. Unless determined actions are taken, it is predicted that social and economic continuity will be increasingly disrupted over the coming decades. It is suggested that the private finance industry must play an important role in mobilizing private capital and partner with public institutions to advance investments in resilient infrastructure. This session went beyond this narrative, and explored the real challenges and opportunities in mobilizing the private sector for investments in resilient infrastructure.
This session explored the narrative of funding gaps, the challenges to financing disaster resilient infrastructure and focus on the role of the private sector in addressing them. The session highlighted some recent innovative financial solutions and policy developments that are creating avenues for greater public-private partnerships. It also discussed the regulatory context within which such policy processes and instruments operate to understand the incentive system. Finally, the session highlighted the relevance of a comprehensive disaster risk financing strategy for the governments to effectively mitigate post-disaster losses and build-back-better. The gaps and opportunities highlighted through the discussion will form the CDRI Workplan for the coming years.