The Organization for Economic Cooperation and Development (OECD) released a report on April 9, 2024, highlighting the urgent need for significant investments in sustainable infrastructure to bolster climate resilience across the globe. The report emphasizes that climate change is intensifying the frequency and severity of extreme weather events, posing a growing threat to critical infrastructure systems, including transportation, energy, and water networks.
According to the OECD, the economic losses from climate-related disasters have increased dramatically in recent decades, jumping from an average of USD 198 billion per year in the 1970s to USD 1.6 trillion in the 2010s. This alarming trend underscores the pressing need to invest in infrastructure that can withstand the impacts of a changing climate.
The report estimates that an annual investment of USD 6.9 trillion in sustainable infrastructure is required by 2030 to align with the goals of the Paris Agreement and the UN Sustainable Development Goals. This substantial investment would not only enhance climate resilience but also support economic growth and sustainable development.
"The right type of infrastructure investment can help enhance the quality of growth, by supporting climate action while protecting biodiversity and reducing pollution and enhancing resilience to risks from climate change," said OECD Secretary-General Mathias Cormann in a press release.
The report identifies several key areas where investment is particularly crucial. These include:
The OECD emphasizes that the transition to climate-resilient infrastructure requires a comprehensive approach that involves collaboration among governments, businesses, and civil society organizations. It also calls for the mobilization of both public and private financing to support the necessary investments.
"Countries will need to take action to address this," the report states, adding that "the level of investment required is estimated to be US$6.9 trillion annually between now and 2030 to align with commitments under the Paris Agreement and the UN's sustainable development goals."
The OECD report serves as a stark reminder of the urgent need to invest in climate-resilient infrastructure. By taking proactive steps to strengthen their infrastructure systems, countries can better protect their communities and economies from the escalating risks of climate change.