Climate
India’s Infrastructure Push Is Racing Ahead of Its Climate Insurance Cover
India’s infrastructure spending has crossed 3% of GDP, but climate risk is rising even faster. As floods and extreme weather become more predictable, parts of the country are edging towards the limits of insurability—raising urgent questions about how resilient India’s growth really is.
India is investing in infrastructure at a scale unprecedented in its post-liberalisation history. Capital expenditure on infrastructure has now crossed 3% of GDP, spanning railways, highways, ports, power plants and airports—assets designed to last well over half a century. Yet, as new research shows, a growing share of this infrastructure is coming up in regions increasingly exposed to climate extremes, raising a critical question for policymakers, insurers and investors alike: can India afford to insure the future it is building?
A new report by Climate Trends on climate risks and insurance for India’s infrastructure argues that climate impacts are no longer episodic shocks. Instead, they are following a clear upward trajectory in frequency, severity and geographic spread, particularly after the mid-2010s. Hydro-meteorological disasters—floods, extreme rainfall, cyclones and landslides—now dominate India’s climate risk profile, with flood risk emerging as the most persistent hazard for fixed, high-value assets.
When Growth and Risk Rise at Different Speeds
One of the report’s central findings is the non-linear relationship between asset growth and climate exposure. Using Delhi as a case study, the analysis shows that while urban expansion grew at roughly 1.3% CAGR between 1986 and 2016, flood exposure increased at nearly 2.46% CAGR, creating a widening divergence that is projected to grow further over time.
This divergence matters because infrastructure assets are geographically fixed and designed for long operational lives. As asset concentration rises and climate impacts become more predictable, the report warns that certain regions may approach the threshold of uninsurability, where premiums become unaffordable or coverage simply unavailable.
Insurers See Opportunity—and Limits
To test these risks against market realities, the researchers surveyed leading non-life insurers and reinsurers operating in India, including SBI General Insurance, Munich Re India, Swiss Re India and General Insurance Corporation of India.
The responses reveal a nuanced picture. Insurers broadly agree that most of India remains insurable, and climate risk insurance is still viewed as a business opportunity. However, hydropower projects and national highways located in flood- and landslide-prone regions repeatedly emerged as areas of concern. One insurer reported rising premium unaffordability for hydropower projects—an especially notable finding given that many planned hydropower assets are located in high-risk Himalayan regions vulnerable to landslides, floods and glacial lake outburst floods (GLOFs).
| >> Globally, insured property losses exceeded USD 140 billion in FY 2024–25 |
| >> India’s natural catastrophe losses in 2023 alone reached USD 12 billion |
A consistent challenge flagged across insurers is the difficulty of pricing climate risk under deep uncertainty. Respondents highlighted gaps in modelling for long-term risks such as sea-level rise, forest fires and compound events, raising the likelihood of a widening protection gap between economic losses and insured coverage.
Losses Are Already Mounting
The financial context underscores why these concerns are intensifying. Globally, insured property losses exceeded USD 140 billion in FY 2024–25, while India’s natural catastrophe losses in 2023 alone reached USD 12 billion, significantly above the previous decade’s average.
Sub-national data further sharpens the picture. States such as Assam, Andhra Pradesh, Odisha, Uttarakhand, Himachal Pradesh, Sikkim, Ladakh and several north-eastern states are identified as among the most climate-vulnerable. Yet these regions also host some of India’s largest infrastructure investments, amounting to nearly Rs 2.95 lakh crore—from port modernisation projects in Odisha and Andhra Pradesh to tunnels, highways and hydropower projects in the Himalayas.
Insurance Is Evolving—but Not Fast Enough
Insurers acknowledge the gap and point to ongoing innovation. Parametric insurance products for heat stress, excess rainfall and flooding are gaining traction, alongside state-level risk transfer mechanisms. Yet coverage remains absent for several high-impact events, including cloudbursts and landslides, even as these hazards grow more frequent.
At the same time, India’s insurance market is expanding rapidly. Premiums are projected to grow at 6.7% in life insurance and 8.3% in non-life insurance through 2028, reflecting both economic growth and rising climate vulnerability.
The concern, however, is whether risk pricing can keep pace with physical reality.
Integrating Climate Risk Before the First Brick
The report also says that climate resilience must shift from being a post-disaster consideration to a core design constraint in infrastructure planning. Among its key recommendations are the standardisation of regulatory frameworks for risk disclosure, underwriting, premium pricing and loss assessment, alongside investment in advanced actuarial models and innovative instruments such as parametric insurance and catastrophe bonds.
Aarti Khosla, Founder and Director of Climate Trends, notes: “As India seeks big investments at the World Economic Forum and plans double-digit (nominal) growth over the next five years, it would be remiss to not point out the risks to India’s infrastructure posed by climate impacts and extreme weather events – which are unarguably increasing in frequency, severity, and geographical spread. The country’s rising exposure for its essential assets could thus lead to mounting climate-induced losses, which would be a fiscal and financial burden. Climate resilience must therefore be integrated into infrastructure planning from the very beginning to minimise the costs of post-disaster reconstruction. Also, several steps will have to come together to ensure long-term insurance viability for such assets, such as advanced actuarial models and standardised frameworks for risk disclosure, premium pricing and loss assessment.”
The Risk Beneath the Growth Story
India’s infrastructure push is central to its growth ambitions and long-term self-sufficiency. But the evidence suggests that climate risk is fast becoming a primary determinant of whether that growth remains financially sustainable. Without integrating resilience and insurability into planning decisions today, the cost of tomorrow’s infrastructure may be borne not just by insurers, but by public finances and future generations.
Climate
More Shade for the Rich: Study Exposes Global Urban Heat Inequality
New MIT research shows how wealthier neighbourhoods enjoy more tree shade, exposing global heat inequality and offering solutions for fairer urban cooling.
As extreme heat becomes a growing global concern, one of the most effective cooling tools remains remarkably simple: trees. Research has long shown that greater tree coverage in cities helps reduce surface temperatures, improve public health outcomes, and make walking more comfortable in high heat.
Yet a new international study led by researchers at MIT reveals that access to this natural relief is far from equal. Tree cover — and the shade it provides — varies drastically within cities, closely tracking neighborhood wealth.
“Shade is the easiest way to counter warm weather,” said Fabio Duarte, an MIT urban studies scholar and co-author of the study, in a media statement. “Strictly by looking at which areas are shaded, we can tell where rich people and poor people live.”
The research team analyzed sidewalk shade in nine cities across four continents: Amsterdam, Barcelona, Belem, Boston, Hong Kong, Milan, Rio de Janeiro, Stockholm, and Sydney. Despite major differences in climate, wealth, and urban form, every city showed the same trend: affluent areas consistently enjoy more tree-shaded sidewalks.
Duarte noted that this imbalance was striking even in cities globally recognized for greenery. “When we compare the most well-shaded city in our study, Stockholm, with the worst-shaded, Belem in northern Brazil, we still see marked inequality,” he said in a media statement. “Even though the most-shaded parts of Belem are less shaded than the least-shaded parts of Stockholm, shade inequality in Stockholm is greater. Rich people in Stockholm have much better shade provision as pedestrians than we see in poor areas of Stockholm.”
The findings were published in the journal Nature Communications, in a paper titled Global patterns of pedestrian shade inequality. The research team includes scholars from Hong Kong Polytechnic University, the Amsterdam Institute for Advanced Metropolitan Solutions, and members of the MIT Senseable City Lab.
A Global Look at Uneven Shade
To quantify shade, the team used satellite imagery and detailed urban economic data to measure sidewalk coverage on both the summer solstice and the hottest day each year from 1991 to 2020. They assigned each neighbourhood a score between 0 and 1, with higher numbers indicating better shade.
Cities differed sharply in total tree cover — for instance, Stockholm’s neighbourhoods often score above 0.6, while large portions of Rio de Janeiro fall below 0.1. But the inequality within each city was consistent: the wealthiest neighbourhoods always had the greatest shade.
Even in cities known for strong environmental planning, disparities remained. “In rich cities like Amsterdam, even though it’s relatively well-shaded, the disparity is still very high,” said Lukas Beuster, a study co-author. “For us the most surprising point was not that in poor cities and more unequal societies the disparity would be notable — that was expected. What was unexpected was how the disparity still happens and is sometimes more pronounced in rich countries.”
Not all trends were uniform. Some cities, such as Barcelona and Milan, featured lower-income neighborhoods with strong shade coverage. Still, across the global sample, economic status remained a powerful indicator of access to cool, walkable streets.
Why Shade Matters — and What Cities Can Do
Sidewalks became the focal point of the study because they are crucial public spaces used daily by commuters, especially those without access to air conditioning or private vehicles. As cities worldwide face rising temperatures, researchers argue that shade must be treated as essential infrastructure.
“When it comes to those who are not protected by air conditioning, they are also using the city, walking, taking buses, and anybody who takes a bus is walking or biking to or from bus stops,” Duarte explained in a communication from MIT. “They are using sidewalks as the main infrastructure.”
Given the scale of disparity, the researchers suggest one clear strategy: target tree planting along public transit routes, where pedestrian activity is highest and where lower-income residents are most likely to walk.
“In each city, from Sydney to Rio to Amsterdam, there are people who, regardless of the weather, need to walk,” Duarte said . “Therefore, link a tree-planting scheme to a public transportation network. … If you follow transit, you will have the right shading.”
Beuster added that cities should think of urban trees as functional assets, not just aesthetic ones, emphasizing their central role in cooling and public health.
Duarte further stressed the importance of prioritizing shade where people actually move through the city. “It’s not just about planting trees,” he said in a media statement. “It’s about providing shade by planting trees. If you remove a tree that’s providing shade in a pedestrian area and you plant two other trees in a park, you are still removing part of the public function of the tree.”
“With increasing temperatures, providing shade is an essential public amenity,” he added in a media statement. “Along with providing transportation, I think providing shade in pedestrian spaces should almost be a public right.”
Climate
When Hillary Clinton Makes a Case for Climate Action from the Global South
At Mumbai Climate Week, Hillary Clinton urges Global South-led climate action, resilience finance innovation and stronger AI governance.
The Jio World Convention Centre in Mumbai, India’s financial capital, was buzzing with climate ambition this week. Start-ups showcased climate-centred products, philanthropic foundations exchanged notes with impact investors, young founders pitched adaptation tools for heat-stressed cities at the Mumbai Climate Week.
Amid the climate-tech demonstrations and policy exchanges, Hillary Clinton’s address stood out for its strategic clarity — positioning the Global South not merely as a beneficiary of climate action, but as its architect.
Her message was less about symbolism and more about systems — about resilience funds, insurance products, clean cooking, AI governance, and the moral responsibility of both North and South in confronting a warming world.
India as a Climate Laboratory
Clinton placed India squarely at the centre of her remarks — not as a victim of climate change, but as an innovator.
“One of our projects which I wanted to mention to you is creating a climate resilience fund to create a place where philanthropic dollars and corporate dollars and the individual dollars could be aggregated to come up with ideas to assist people who are out there working,” she said at the Mumbai Climate Week.
Through the Clinton Global Initiative (CGI), that idea has already taken shape in India.
Working with Humanity Insured — a not-for-profit backed by major insurance firms — and in partnership with SEWA(Self-Employed Women’s Association), CGI launched a parametric insurance product designed for informal women workers vulnerable to extreme heat. The concept is simple but transformative: when temperatures cross 39°C, women who cannot work a full day can claim compensation for lost income.
“As I speak right now, we’ve got this product up and going. India is the example. It’s the model,” Hillary Clinton said. “We now have 500,000 insurance holders here in India. And India will be the model for the rest of the global south because of this CGI commitment.”
The insurance scheme reflects a larger shift in climate discourse — from abstract mitigation targets to hyper-local resilience. For informal workers, climate change is not a policy debate; it is lost wages when heat makes construction sites unworkable.

Clinton framed the model not merely as philanthropy but as smart economics. “This is not only a good thing to do. It is smart. It is a new market.”
The Global South as Agenda Setter
Repeatedly, she argued that climate solutions must emerge from the regions most affected.
“We have to focus attention on solutions in the places that are clearly now most affected by climate change… the front lines of the fight against global climate change is right here in the Global South.”
While acknowledging the historical responsibility of industrialised nations, she did not shy away from noting that emerging economies must also accelerate their transition to clean energy. Pollution, she stressed, is not an abstract carbon statistic — it is a health crisis.
“When I talk about fossil fuels, I’m not just talking about climate change. I’m talking about the pollution that goes in the air in Delhi or Beijing. I’m talking about clear evidence that pollution is impacting our health… particularly the health of our children.”
Climate, she insisted, is inseparable from public health.
Philanthropy Beyond Charity
One of the sharper threads in her address was directed at philanthropy. Charity alone, she argued, cannot solve structural crises.
“If you want to feed a hungry person, give them a fish. If you want to end hunger, teach them to fish,” she said, invoking the familiar metaphor to argue for systemic reform.
The climate resilience fund is intended as catalytic capital — seed funding that aggregates philanthropic, corporate and public resources to unlock scalable models. Adaptation, in her framework, must sit alongside mitigation.
Hillary Clinton also pointed to the massive intergenerational transfer of wealth underway globally, urging that it be channelled into long-term climate solutions rather than short-term relief.
AI, Energy and the Next Disruption
Though the week’s focus was climate, Clinton ventured into another domain shaping the future: artificial intelligence.
AI, she acknowledged, could optimise renewable grids and enable hyper-local climate projections. But she warned against uncritical adoption.
“This technology is also consuming vast amounts of power, water, infrastructure… We would be naive not to recognize the potential threats that AI and its development is causing.”
She raised pointed questions about data centres’ energy and water demands, labour market disruptions, and the political influence of tech giants.
“The people running these companies are the richest people in the world… They want to shape the future… Governments need to be ready to demand answers.”
Drawing lessons from social media’s regulatory lag, she cautioned against waiting a decade to understand AI’s harms. “Let’s figure out how we can deal with that ahead of time and try to shape it rather than shape the life.”
“We inherited it. And with that inheritance… should come a sense of responsibility”
In a country rapidly expanding both its renewable capacity and digital infrastructure, the intersection of AI and climate carries particular urgency.
A Personal Case for the Planet
Beyond policy and programmes, Hillary Clinton’s speech carried a deeply personal note. She spoke of hiking the day after the 2016 US election — an act of reconnecting with nature in a moment of political upheaval.
“I find it so reinvigorating… now we know that spending time in nature… actually does help reset your brain,” she said.
Her environmentalism, she explained, stems from reverence. “We inherited it. And with that inheritance… should come a sense of responsibility.”

Climate change, she warned, will not only intensify heatwaves and wildfires but amplify migration, conflict and political instability. Ignoring it is neither economically nor strategically rational.
“If we don’t take care of our world today, it will cost us more money. It will cost us more death and destruction. It will cost us more political conflict.”
A Message to Young Innovators
Among the audience were young founders and activists — many from India’s growing climate-tech ecosystem. Clinton’s closing words were directed at them.
“Do not give in to the naysayers and the cynics. Do not doubt that you are engaged in historic, important work.”
Hillary Clinton acknowledged that global climate finance often bypasses grassroots innovators, particularly women in the Global South. That imbalance, she implied, must change.
“Keep knocking on doors, making your arguments, showing up… ideas are going to come from everywhere and they’re going to be good ideas.”
Mumbai Climate Week, positioned as a first-of-its-kind platform in India, was organised by Project Mumbai with support from organisations including IDFC First Bank and Monitor Deloitte.
Climate
IEA Ministerial 2026: Global Energy Leaders Expand Ties, Push Critical Minerals Security
At the IEA Ministerial Meeting in Paris, 54 countries backed expanded membership talks with Brazil, India, Colombia and Viet Nam, while strengthening cooperation on critical minerals and clean energy security.
Global energy leaders convened in Paris this week for the International Energy Agency’s Ministerial Meeting, underscoring the agency’s expanding role in shaping international cooperation at a time of rising demand, geopolitical tensions, and accelerating energy transitions.
The two-day gathering drew senior government representatives from a record 54 countries, around 40 of them at ministerial level. Executives from 55 companies — representing a combined market capitalisation of $14 trillion — joined leaders of intergovernmental organisations in what became the largest Ministerial Meeting in the agency’s history.
At the heart of the discussions was a clear message: energy security, affordability and sustainability can no longer be pursued in isolation. They require deeper multilateral coordination, stronger data systems, and expanded institutional alliances.
Expanding the IEA Family
Member governments unanimously agreed to move forward on strengthening institutional ties with Brazil, Colombia, India and Viet Nam. In a major step, Colombia was invited to become the IEA’s 33rd Member. Brazil was invited to begin the process toward full membership following a request from its government. Ministers also welcomed recent progress in discussions with India regarding its request for full membership. Viet Nam joined as the newest Association country in the IEA Family.
The expansion significantly alters the geometry of global energy governance. With these additions, the IEA Family’s share of global energy consumption now exceeds 80%, up from less than 40% a decade ago — reflecting a profound shift in the agency’s global reach.
“This Ministerial Meeting, our largest ever, affirmed the immense value of the IEA at a moment when global energy demand is rising and the challenges facing the energy system are intensifying. In this context, our wide range of objective data and analysis is more important than ever,” said IEA Executive Director Fatih Birol.
“In a strong step forward for global energy governance, key countries such as Brazil, Colombia, India and Viet Nam are strengthening their ties with the IEA. This puts the IEA Family’s share of global energy use at more than 80%, up from less than 40% ten years ago. With major energy issues high on the international agenda, we stand ready to support governments with the insights they need to plan for the future, helping leaders deliver on their goals of ensuring greater energy security, affordability and sustainability.”
Deputy Prime Minister Sophie Hermans of the Netherlands, who chaired the Ministerial, framed the discussions in terms of resilience amid uncertainty.
“These two days in Paris have reaffirmed how essential energy is to our daily lives – it is the invisible driving force behind everything we do. Under the umbrella of knowledge of the International Energy Agency, we have once again seen that international cooperation is key,” she said. “Our priority is clear: secure, affordable and sustainable energy – and resilient systems that can endure in an uncertain world.”
In a video address opening the meeting, French President Emmanuel Macron emphasised the IEA’s analytical leadership. “Through its in-depth analyses, and the technical expertise of its team, the IEA, under the leadership of its Executive Director Fatih Birol, plays an essential role. It enlightens us to help us guarantee our energy security and steer the energy transition.”
Beyond institutional expansion, the Ministerial marked a strong endorsement of deeper cooperation on critical minerals — increasingly viewed as the backbone of clean energy technologies.
In a special declaration, Ministers backed expanding collaboration under the IEA Critical Minerals Security Programme to address mounting risks to global supply chains. They called for strengthened data tools, collaborative exercises and clearer guidance on measures such as stockpiling, aimed at diversifying supply chains and building resilience against supply shocks.
Clean Cooking and Energy Access
Member countries also approved the integration of the Clean Cooking Alliance into the IEA, positioning the agency as the principal multilateral forum for advancing clean cooking solutions. The move seeks to accelerate access for the more than two billion people worldwide who still lack clean cooking technologies.
The integration comes ahead of the IEA’s second Summit on Clean Cooking in Africa, scheduled for July 2026 in Nairobi, where governments and industry leaders are expected to review progress since the inaugural 2024 summit and outline new financing and policy pathways.
Energy Security in the Age of Electricity
Two high-level dialogues during the Ministerial focused on safeguarding energy security in what officials termed the “Age of Electricity,” and on supporting Ukraine’s energy system amid ongoing disruptions. Ukrainian First Deputy Prime Minister and Minister of Energy Denys Shmyhal participated in discussions on rebuilding and securing Ukraine’s energy infrastructure.
As energy demand continues to climb and transition pathways grow more complex, the IEA’s expanding membership and programme scope suggest that multilateral coordination — once largely confined to oil security — is now being repositioned as the backbone of a rapidly electrifying and mineral-intensive global energy system.
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