Economic Highlights
New
Delhi, 9 May 2022
Climate Resilience
LARGE FUNDS CAN’T
SAVE GLOBE
By Shivaji Sarkar
Amid the rising disaster risk threats to
infrastructure, the world plans massive investments of $94 trillion for disaster
resilience in the India-initiated Coalition for Disaster Resilient Infrastructure
(CDRI). The catch line is what the world invested in 200 years is to be done in
20 years.
The global infrastructure investment is
estimated at $2.7 billion a year. Insurance giant Lloyds was quoted as 12 per cent
funds getting lost in disasters and 88 per cent funds into rebuilding. A
disaster-related to weather, climate or water hazard occurred every day on
average over the past 50 years -- killing 115 people and causing US $202
million in losses daily, according to a new report of the World Meteorological
Organisation (WMO). The costs are to rise as inflation rises and interest rates
hiked.
Prime Minister Narendra Modi says that
infrastructure is about people and providing them high quality, dependable, and
sustainable services in an equitable manner. The fourth international conference
of CDRI in New Delhi does not focus on financing but sees infra plus green
nature in totality through integrated approach of community-based efforts. An
effort to save public fund! Many cities across the world and island nations are
at great risks. In India, for example, cities like Bhubaneshwar,
Vishakhapatnam, Chennai and Kolkata are perceived to be at climatic risk, says
Kaushal Kishore, member-secretary of NDMA, the co-chair of ICDRI says. The
other co-chair is Veena Reddy, Mission-Director, USAID. He says India may lead
hydrogen initiative.
The meet draws the contours but subtly
deliberates the high investment projections because infra is never likely to
have an infinite life. The resources are limited how would this expenditure be sustainably
funded the meet grapples with, as Shiva Mokotoko, CEO, RBN Fund of South Africa
indicates. The private sector is a miser on such investment. It means it has to
come through public funding, euphoria for financing by the poor.
Nestor Altono Sanatamaria, Policy Device and
Research OECD says how the money is spent, adaptability, flexibility as also
designing policies as guarantor of public trust is key to the resilience. It is
stated that the existing methods and tools of
disaster risk reduction, and climate risk management, in particular, provide for
powerful capacities for substantially reducing risks and adapting to climate change.
In
focus are healthcare post pandemic, earthquakes, floods, rising cyclones in
India’s east and west coasts and looks at the destruction of telecom towers,
roads, ports and urban infra. Reddy says that $10 billion is required
immediately for poverty reduction and flagship healthcare. What are to be saved
are telecom towers, power plants, digital infra, transportation and
communication.
The
experts discuss various earthquakes, floods and cyclones in Haiti, Nepal,
Pakistan, Peru and whether David Rodford Wilson, Director in UK reconstructing
Peru, Kamran Akbar of World Bank or Kevin Karouiki, an expert of power, climate
and green growth, helping Fiji come out of 10 major cyclones since 2012
witnessing billions of dollar damages to housing to large infra, opine that the
best solutions for reconstruction always come from the affected people. Akbar
says, “Disaster brings the best and worst of the people” for reconstruction to
restoration of livelihood. They build blocks and reconstruct the local infra.
The finances definitely have to be fine tuned.
Furthermore,
new changes, such as Arctic ice melting, are happening faster than was
predicted by the IPCC reports. It seems that the future is more serious and
challenging. Such meets discuss whether this can be stopped with pouring of
funds and sharing by
large private entities. Can it create the resilience!
The Fukushima nuclear accident in Japan built on a quake
prone area, close to the sea could have been prevented in 2011. Tōhoku
earthquake and tsunami had such spot not chosen. Not much is known to have been
discussed of problems of the Three Gorge Dam of China overflowing often and
accumulation of massive turbid water. There are instances of severe Kerala
floods due to dam busts. It changed river courses and topography. Now India
builds nine major dams including in fragile Aruanchal Pradeesh, Manipur and
Mizoram. TS Swaminathan, an Indian
expert extols the 200-300-year-old dams for their resilience.
The most circumspect on finances
appears to be Africa. The Ghana Chief Director, Ministry of Environment Cynthia
Asare Bediako wonders how to create the fund for reducing carbon emission. She
says climate change has no boundaries and how to forge policies that can help
most challenges of sustenance, livelihoods and jobs. She wonders on private
participation and if the CDRI could help. The African Development fund officer
Surminsu calls for relook at policies as also on sustainable energy that is the
first to break during a disaster. Poor countries need tech transfers that CDRI
stresses.
Kishore points at the Pacific islands.
They are at continuous risk and needs about $3 billion to support them and wonder
whether that is resilient investment. On the energy front, many questions remain.
There is $10.2 billion UNFCC fund for green climate fund. Edwin Koekkoek, counsellor, energy, of European Union says
that while mix of alternate energy is being worked out, there remain
limitations. On having hydrogen, its import and export, EU is working with
India on how to invest in energy infra.
Vandana
Kumar, Secretary, Renewable Energy Ministry says that India is taking steps to
create the hydrogen support, its storage and transportation issues and the
green energy to the world. Rangan
Banerjee, IIT, Delhi, says research is needed to build the hydrogen road map. Dr
Uwe Remme, head hydrogen IAEA, says it is not easy technology and has high cost.
Kishore releasing paper on hydrogen perspective says challenges are huge as
also unclear on the governance to be needed vis-a-vis traditional power system.
On
finances, CDRI appraisal is likely to be mandatory for state projects, says
Baldeo Purusharth, Joint Secretary, Department of Economic Affairs and blended
finance possible. Systems are also being created for making the system more
robust through national monetisation scheme. Purusharth and Santamaria sum up
the issue of financial trust that can create resilient system.
Nobody
can prevent climate change but for its sake the world cannot also plunge into
investing sums into an abyss. Infra funding has large leakages and that have to
be plugged to save the poor from further slipping into deep crisis. Discreet funding
and protecting fragile ecology would create the dreamt resilient infra
development and not the big projections.---INFA
(Copyright, India News & Feature Alliance)
|