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India’s cities need $2.4T to meet climate goals

by Carien B.
July 30, 2025
in News
India; climate; goals

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Urbanization in India seems to on a rapid increase. A magnitude of people flock from the rural villages to the active cities. Certain factors can account for these actions. Agricultural transformation is definitely one on the list with the mechanization of the farming industry the need for human labor has decreased drastically. Being put out of a job by a “machine” will definitely drive one to “greener pastures”. With that in mind, increased employment opportunities can be a huge drawing plaster for a move to an urban area.

A futuristic set of goals

India needs to invest more than $2.4 trillion by 2050 to build climate-resilient urban infrastructure, as its fast-expanding cities face growing challenges from extreme weather events linked to climate change, the World Bank said on Tuesday. Climate-resilient infrastructure is crucially important to safeguard people and communities against the impact of climate change.

Key focus areas for these types of infrastructure would always include preparation, adaption as well as recovery. A good example here would be building structures able to withstand weather extremes such as high winds and flooding. The number of Indians living in cities is projected to nearly double to 951 million by 2050 from 480 million in 2020.

But erratic rainfall, heatwaves, and rising sea levels are leaving urban areas in the world’s most populous nation increasingly vulnerable, the bank said in a report. Without large-scale investments in housing, transport, water, and waste management systems, India will face escalating costs from weather-related damage, said the report entitled “Towards Resilient and Prosperous Cities in India”.

Ongoing climate change matters

“Cities need to become more resilient if people living in those cities are going to be safe,” Auguste Tano Kouame, the World Bank’s country director for India, said at the launch of the report, which was prepared in collaboration with India’s urban development ministry. Urban flooding already causes an estimated $4 billion in annual losses in India, the report found.

That figure is projected to rise to $5 billion by 2030 and as much as $30 billion by 2070 without remedial action. The report’s estimates based on conservative urban population growth put India’s investment needs at $2.4 trillion by 2050 and $10.9 trillion by 2070, with those projections increasing to $2.8 trillion and $13.4 trillion respectively if the population is moderately urbanized.

“Timely actions can avert billions of annual damages and losses in flooding and extreme heat while investing in resilient and efficient municipal infrastructure and services,” the report said. Sustainability is a key factor in municipal engineering. This can include your green infrastructure, energy-efficient buildings which reduce energy consumption as well as innovative city technologies.

A new urban infrastructure design for India

Here is where optimized use of resources come in, such as energy and water. India currently spends about 0.7% of its gross domestic product on urban infrastructure, well below global benchmarks, and must significantly scale up public and private financing, the World Bank report said. Federal, state and municipal governments must coordinate to improve project financing and provide climate-linked fiscal transfers.

And India must increase partnerships with the private sector in areas including energy-efficient water supply, sanitation, solid waste management, and green buildings, it said. Private finance currently accounts for just 5% of urban infrastructure investment, the report said.

With such a rapid urban population growth, the overall demand for housing and infrastructure has increased considerably. The construction industry has also shown a similar boom, all things considered. Trying to combine all of this towards the achievement of climate goals can be a tricky minefield to navigate, but not necessarily impossible. Proper urban design and planning can really do wonders to work towards the future goals of the country. Implementing things such as green building design principles, efficient use of sharing devices, etc, are just a few suggestions that can be followed.

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