World Loses Up to $800bn in Infrastructure to Disasters Annually – CDRI

Oru Leonard 

New Delhi: The world loses an estimated $700 billion to $800 billion in infrastructure every year as a result of natural disasters, the Director General of the Coalition for Disaster Resilient Infrastructure (CDRI), Amit Prothi, has disclosed.

Prothi said the figure represents only the direct physical damage to infrastructure, while the wider economic consequences could be about seven times higher.

He made the disclosure while addressing international journalists covering the BRICS meetings in New Delhi, where he called for stronger investment in disaster-resilient infrastructure and climate adaptation.

According to him, the increasing frequency and severity of wildfires, floods, earthquakes, cyclones and other extreme weather events are exposing infrastructure systems to unprecedented risks.
“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.

CDRI Expands Global Membership
Prothi said the CDRI, launched by India in 2019 at the United Nations in New York, has grown from 24 founding members to 70 members, with the Philippines expected to become the 71st member.

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

He explained that the coalition was established to facilitate the exchange of knowledge, experiences and best practices to help countries understand and manage increasingly complex disaster risks.

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

Focus on Resilient Infrastructure
Prothi stressed that CDRI does not directly finance infrastructure projects but works with governments to integrate resilience into infrastructure planning, design and development.

Using an analogy, he described CDRI as “the chilli in the soup”, explaining that the organisation helps countries assess how roads, power systems, telecommunications and other infrastructure can withstand future climate and disaster risks.

He said changing climate patterns require governments to reconsider conventional infrastructure standards and building codes.
“ You may not have experienced floods before, but patterns are changing. The question is how you prepare your infrastructure for those future risks,” he said.

Prothi identified telecommunications, energy and transport as critical infrastructure sectors requiring greater attention.

Recounting his experience during the 2015 earthquake in Nepal, he said the collapse of telecommunications infrastructure demonstrated how vital resilient communication systems are during emergencies.
“I was in Kathmandu during the earthquake and could send a brief message to my family. Others couldn’t contact their loved ones because telecommunications infrastructure had broken down,” he said.

According to him, CDRI is also supporting governments in assessing risks to electricity networks and transportation systems and incorporating risk data into infrastructure planning.

The CDRI Director General said the coalition has increasingly become a technical partner to major international platforms, including the G20, BRICS, United Nations and UN climate conferences.

He noted that during India’s G20 presidency, CDRI supported the establishment of a Disaster Risk Reduction and Resilient Infrastructure Working Group.
The initiative continued under Brazil’s G20 presidency and has contributed to broader international discussions on climate adaptation and infrastructure resilience.
Prothi said the growing global emphasis on adaptation makes resilient infrastructure increasingly important.
Faster Post-Disaster Recovery Needed
He also called for greater attention to recovery after disasters, arguing that resilience should not be limited to prevention and preparedness.
Prothi questioned why some countries are able to rebuild critical infrastructure relatively quickly after disasters while others take years or even more than a decade.
“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 are ongoing around innovative financing options, including insurance and greater private-sector participation, to enable countries to mobilise reconstruction funds more rapidly after disasters.

Data to Drive Infrastructure Planning
Prothi said CDRI has developed a global risk database designed to help countries estimate potential infrastructure losses and identify vulnerabilities across different sectors.

He cited Brazil as facing average annual infrastructure losses of approximately $13 billion, while Africa records losses on a comparable scale, according to the coalition’s assessmentsHe explained that infrastructure sectors face different types and levels of risk, making accurate data essential for effective planning.
“Different infrastructure sectors face different risks. Power transmission systems, for example, may be highly vulnerable to cyclones, while buildings may face greater risks from earthquakes,” he said.

Looking ahead, Prothi said CDRI would strengthen dedicated programmes for Africa, small island developing states, mountain regions and cities, where climate and disaster risks are becoming increasingly complex.

He also identified artificial intelligence, satellite technology and advanced modelling as emerging tools that could significantly improve early warning systems, risk assessment and disaster preparedness.
“There is an incredible amount of work under way on using data and predictive models. This will be one of the most important conversations over the coming years,” he said.

Prothi further called for increased participation by ASEAN countries, noting that nations in the region have accumulated significant experience in managing earthquakes, tsunamis, floods and other natural hazards.

He said sharing such expertise globally would help countries strengthen their resilience while enabling ASEAN nations to benefit from international experiences and innovations.