India needs about $52 billion annually to address urban climate adaptation needs: Report

New Delhi: India needs an estimated $52 billion (about Rs 4.58 lakh crore) annually to address its urban climate adaptation needs effectively, according to a new report on Wednesday.

From scorching heatwaves to record-breaking monsoons, rising air pollution to unseasonal cyclones, climate change is manifesting in increasingly dire ways in urban India.

A new report by The Bridgespan Group, in collaboration with United Way of Mumbai and HSBC India, spotlights opportunities to strengthen climate resilience across India’s vast informal sector, that forms the backbone of every city’s economy and accounts for roughly 40 per cent of India’s urban population.

The study examines how India’s informal workers and settlement dwellers are responding to intensifying climate risks such as heatwaves, flooding, and air pollution.

Based on conversations with communities and experts, the report outlines five practical investment ideas — or “bold bets” — that can drive locally led climate adaptation and attract additional public and private funding:

These are climate-smart housing modifications that improve heat resilience and energy efficiency; climate-indexed wage insurance that stabilises income during climate-related disruptions; sustainable urban drainage systems that strengthen water security and reduce flooding; distributed renewable-energy systems that provide reliable, affordable power in informal settlements; and climate-resilient micro-entrepreneurship that expands green, indoor livelihoods and fosters innovation.

“Financing climate resilience in informal urban communities is not just about mitigating risk, it is about unlocking opportunity. The report highlights the important role philanthropy, CSR and venture capital can play in demonstrating solutions to unlock capital – public and private,” said Aloka Majumdar, MD and Head of Sustainability, HSBC India.

Anant Bhagwati, Bridgespan Partner and report co-author, added that “We hope this report sparks collaborative action, serving as a starting point for funders and investors to build a more equitable and climate-resilient future for everyone who lives and works in our cities”.

IANS