India Requires $52 Billion Annually to Meet Urban Climate Adaptation Goals: Report

New Delhi, Nov 12:
India will need roughly $52 billion every year—about ₹4.58 lakh crore—to effectively meet the climate adaptation needs of its rapidly growing urban centres, according to a new report released on Wednesday.

With cities facing extreme heatwaves, erratic monsoons, worsening air pollution, and unexpected cyclones, the effects of climate change are becoming more visible and more dangerous across urban India.

A study by The Bridgespan Group, developed in partnership with United Way Mumbai and HSBC India, highlights significant opportunities to strengthen climate resilience within the country’s vast informal sector. This segment supports city economies and represents nearly 40% of India’s urban population.

The report explores how informal workers and residents of informal settlements are coping with rising climate threats such as intense heat, flooding, and deteriorating air quality.

Drawing on insights from community interactions and expert consultations, the study presents five key investment pathways—described as “bold bets”—that can advance locally driven climate adaptation and help mobilize more public and private capital. These include:

• Climate-smart home upgrades to improve heat tolerance and energy efficiency

• Climate-indexed wage insurance to stabilize incomes during weather-related disruptions

• Sustainable urban drainage systems to enhance water security and reduce flood risks

• Decentralized renewable energy solutions for reliable and affordable power in informal settlements

• Climate-resilient micro-enterprises that encourage green livelihoods and local innovation

“Building climate resilience in informal urban communities is both a risk-mitigation and opportunity-creation exercise,” said Aloka Majumdar, MD and Head of Sustainability at HSBC India. She emphasized the critical role of philanthropy, CSR initiatives, and venture capital in piloting scalable solutions and unlocking broader funding.

Anant Bhagwati, Partner at The Bridgespan Group and co-author of the report, added, “We hope this report inspires collective action and becomes a catalyst for funders and investors committed to building a more inclusive and climate-resilient urban future.”