Gross Domestic Climate Risk Report

• According to a recent analysis titled "Gross Domestic Climate Risk," the majority of Indian states face a significant risk of building environment damage as a result of climate change threats.
• India contains nine states in the 50 high-risk states, including Punjab, Bihar, Uttar Pradesh, Maharashtra, Rajasthan, Tamil Nadu, Gujarat, Kerala, and Assam, according to the Cross-Dependency Initiative's (XDI) rating of Gross Domestic Climate Risk.
• Global company Cross-Dependency Initiative's (XDI) specializes in analyzing climate risk for governments, financial institutions, and businesses.

Study on Gross Domestic Climate Risk:

• The report was released by the Cross Dependency Initiative, or XDI, which is based in Australia.
• Being one of the businesses estimating the costs of climate change, XDI is a member of the Climate Risk Group.
• According on projected damage to the built environment from extreme weather and climate change, such as flooding, forest fires, and sea level rise, the research rates more than 2,600 jurisdictions throughout the world in 2050.
• The term "built environment" describes elements of the environment that have been constructed by people to facilitate human activities, such as homes and businesses.
• The paper also reveals which of these jurisdictions experiences the biggest modelled harm escalation between 1990 and 2050.
• The report's main goal is to guide investors in selecting long-term investment locations.
• In 2,600 States and provinces around the world in 2050, the index determined the "Physical Climate Risk" to built environments, such as buildings and properties.
• The index gave each region an Aggregated Damage Ratio (ADR), which represents the overall amount of harm that region’s-built environment would endure in 2050. A high ADR indicates greater risk.

The findingnding of the report:

2050 Global Climate Risk Profile:

• The most vulnerable nations are China and the United States, which have the most provinces among the top 50 regions in the world for climate risk.
• China is home to more than half of the top 50 provinces in the world. With 18 states ranking among the top 100, the US has the second-most high-risk states after China.
• More than half of the states and provinces in the top 100 are collectively owned by China, India, and the US.
• The most vulnerable region is South East Asia, which has the highest increase in harm from 1990 to 2050.
• Worldwide, riverine and surface flooding, or flooding combined with coastal inundation, inflict most of the damage.
• Two of China’s largest sub-national economies – Jiangsu and Shandong – top the global ranking.
• With 114 of the top 200 regions located on the continent of Asia, the continent heavily dominates the ranking.
• Asia dominates the list, accounting for 114 of the top 200 regions, including Pakistan, Indonesia, and the majority of the South East Asian nations.
• In 2022, devastating flooding ruined more than 9 lac homes in Sindh province and devastated 30% of Pakistan's land.

Climate Risk Profile for India by 2050:

• By 2050, 14 Indian states are expected to continue to be among the top 100 climate-risky regions in the world.
• Bihar, Uttar Pradesh, Assam, Rajasthan, Tamil Nadu, Maharashtra, Gujarat, Punjab, Kerala, Madhya Pradesh, West Bengal, Haryana, Karnataka, and Andhra Pradesh are the 14 Indian states that rank among the top 100 in the world for damage risk.

States that are most at risk:

• The analysis predicts that Bihar, which currently ranks 22nd globally, will be the most climate-vulnerable province in India by the year 2050.
• With rankings of 25 and 28, respectively, Uttar Pradesh and Assam are the next two states.
• Nonetheless, Assam tops the list of the top 50 most vulnerable places globally, increasing climatic impacts by an astounding 330 percent between 1990 and 2050.
• High-risk provinces will have an average 110% increase in damage risk by 2050 under high emissions scenarios like the Representative Concentration Pathway (RCP) 8.5.
• With a current temperature increase of 0.8 degrees, all 27 of India's states and more than 75 percent of its districts are extreme event hotspots, which results in a 5% decline in GDP.
• Climate-vulnerable states in India will lose more than 10% of their gross state domestic product if global warming exceeds 2-degree thresholds

The objective of the Report:

• While there is a correlation between densely populated locations and high levels of economic activity and property wealth, the ranking data may be important for investors as well.
• Together with infrastructure planning and adaption strategies, it can help state and provincial governments make climate-resilient investment decisions.
• In order to assess the susceptibility of global supply chains, the finance sector can directly compare major global industrial hubs like Mumbai, New York, and Berlin using a like-for-like technique.