Making a ‘financial case’ for resilient infrastructure is essential to incentivize private capital to deliver risk-adjusted returns. The same capital, when invested in critical infrastructure sectors, could lead to larger socio-economic benefits of protecting lives and livelihoods. Given the rising threats of disasters and climate change to business continuity worldwide, it is imperative for investors to incorporate disaster and physical climate risks into their infrastructure investment decisions. A delay in doing so can lead to either a direct physical impact and/or an impact in the valuation of the investment.

The Disaster Resilient Infrastructure (DRI) dialogue series on ‘Finance for Resilient infrastructure’ is conceptualized in line with CDRI’s engagement and presence at COP26 to showcase its commitment towards building resilient infrastructure.  The series is designed with a solution-oriented focus to drive the agenda of climate and disaster risk financing in collaboration with our partners - Coalition for Climate Resilient Investment (CCRI) & InsuResilience Global Partnership.

The second discussion in the DRI Dialogue Series - The ‘Financial Case’ of Resilient Infrastructure: Integrating Disaster and Climate Risks into Infrastructure Investment Decisions - will take the discussion forward from the previous conversation that touched upon the role of private capital in developing risk financing strategies. The discussion will explore the practical aspects of infrastructure investment decision-making and deliberate upon making a strong financial case for investing in resilient infrastructure.

Key questions to be discussed at the Dialogue are:

• How critical is the role of private sector in supporting the large-scale public infrastructure investment plans of the governments?
• How do we integrate physical climate risks into investment decisions? How do we price the physical climate risks in business transactions? What are the specific challenges?
• How transitional and reputational risks influence businesses to address climate change?
• How can businesses be incentivized to invest in resilient infrastructure? What is expected from the government?
• How can businesses leverage the opportunities associated with investments in climate and disaster resilient infrastructure for their profitability and long-term resilience?

 

Watch the recording of the first dialogue here.

Read the outcome document of the first dialogue here.