Transport sector faces $400 bn losses due to climate change

South Asia faces potential economic losses of $575 billion in the transportation sector, with India alone accounting for $400 billion, according to a report by BCG and CDRI.

South Asia is liable to grapple with cascading economic losses in the transportation sector amounting to US 575 billion, out of which India alone is expected to account for US$ 400 billion. These are findings from a report by Boston Consulting Group and Coalition for Disaster Resilient Infrastructure (CDRI) titled ‘Transport Infrastructure Reimagined: Forging Resilient Connections ‘ An Integrated Framework to Unlocking Resilience Dividends for South Asia’.

The report states that as the frequency and severity of climate related events is accelerating sharply, it could derail years of progress unless strategic measures are initiated. Risks of physical damage are just the beginning, as disruptions in transportation can lead to cascading failures across interconnected network systems. India accounts for 80% of the region’s asset exposure.

Anirban Mukherjee, MD and Parner at BCG feels that it is an opportune time for India to avert significant economic losses with an integrated approach to “embed resilience across existing and planned projects”. On the other hand, CDRI Director General Amit Prothi said that this could also convert to a major opportunity. If India manages to reimagine transporation infrastructure through a resilience lens, it could unlock significant economic, environmental and societal dividends.