The United Nations Disaster Risk Report (UNDRR), wants an investment in preventative measures, prioritized in the fight against climate change.
In its latest report, the UNDRR, said a global investment of about €1.6 trillion, in appropriate disaster risk reduction strategies, could avoid losses of €6.4 trillion.
Therefore, scaling up investments in disaster risk reduction is critical to protect development gains, against a rapidly changing climate.
But this requires a whole mindset shift to take place across the financial system, a move from a short-term outlook and under-prioritizing disaster risks to promoting a ‘Think Resilience’ approach that becomes mandatory in all public, as well as private sector investments.
According to the report, investing in prevention mitigates losses in low and middle-income countries, investing in more resilient infrastructure yields US $4 in benefit for each $1 invested.
Just a 24 – hour warning of a coming storm or heat wave, can cut the ensuing damage by 30 percent.
“Spending US $800 million on such systems in developing countries would avoid losses of $3–16 billion per year.
Investing in resilience can foster economic growth and employment. Every $1 million invested in climate adaptation infrastructure in the construction sector creates close to 650 jobs in India, 200 in China, 160 both in Brazil and in Indonesia, and 120 in the Russian Federation.
Climate services investments overall have a cost benefit ratio of one to 10.”
Findings show securing water by 2030, could cost just over 1% of the global GDP, an equivalent of about 29 cents per person, per day from 2015-2030.
Total insured losses from natural hazards and human- induced disasters in 2023 was estimated at $291 billion.