India needs a unified climate risk framework

Source: The post India needs a unified climate risk framework has been created, based on the article “Progress should not just be fast but future-proof” published in “The Hindu” on 21 May 2025. India needs a unified climate risk framework.

UPSC Syllabus Topic: GS Paper3- Environment

Context: India faces rising climate threats, from floods and droughts to heatwaves. Over 80% of its population lives in high-risk districts. Despite this, the country lacks a unified, forward-looking framework to assess and manage climate physical risks (CPRs).

For detailed information on How India’s new government should scale up climate action read this article here

Understanding Climate Physical Risks

1. Broadening Nature of Risks: CPRs include both sudden shocks like floods and heatwaves and long-term stresses like droughts and shifting monsoons. These threats are now systemic and recurring.
2. Limitations of Short-Term Approaches: Forecasts and warning systems reduce immediate losses but fail to support long-term planning. Climate projections help detect evolving risks over time.
3. Impact on Systems and Stability: These risks affect not just the environment but also health, the economy, and national security, disrupting normal life and development.

Global and Domestic Gaps in Adaptation Efforts

1. Imbalance in Climate Funding: Most funding goes toward mitigation—like renewables—rather than adaptation. Resilient infrastructure receives less attention and support.
2. Adaptation as a Universal Necessity: Climate change now challenges both the Global South and the Global North. Wildfires and cyclones in developed nations show the need for adaptation everywhere.
3. Economic Gains from Adaptation: The UN Environment Programme states that each $1 spent on adaptation yields $4 in savings through reduced losses and lower recovery costs.

Deconstructing Climate Risk: Hazard, Exposure, Vulnerability

1. IPCC’s Risk Formula: CPRs are defined by hazard (type of event), exposure (who or what is at risk), and vulnerability (ability to recover). All three shape actual risk levels.
2. Beyond Frequency of Disasters: Understanding exposure and vulnerability is key. Risk is not just about how often events occur but also about who is affected and how prepared they are.
3. Need for Integrated Risk Thinking: This approach allows governments and businesses to move from reactive to proactive planning.

Institutional Responses and Regulatory Evolution

1. Mandatory Climate Disclosures Emerging Globally: Regulators worldwide now demand CPR disclosures. The IFRS ISSB S2 sets global reporting standards.
2. India’s Financial Response: The Reserve Bank of India is integrating CPRs into its regulatory framework, linking climate risks with economic and financial stability.
3. Business Continuity at Stake:,Climate disclosure is becoming central to investment, operations, and risk management.

Fragmented Approach in India and Emerging Efforts

1. Scattered Risk Assessments: India’s CPR data is spread across agencies and research bodies, each using different tools and priorities.
2. Lack of Standardised Data: Despite having flood maps and vulnerability atlases, there is no central system. This limits policy and business decision-making.
3. Global Models Fall Short: Existing international models fail to capture India’s local climate variations accurately.

Towards a Comprehensive Climate Risk Framework

1. Initial Steps Underway: India submitted its first Adaptation Communication in 2023. A complete National Adaptation Plan is in progress, covering nine sectors at the district level.
2. Need for a Dedicated CPR Tool: India must build a unified, localised CPR tool combining standardised data, risk models, and transparent methods to support public and private planning.
3. Future-Proofing Development: This tool is essential to align climate resilience with India’s development goals under Viksit Bharat.

Question for practice:

Examine the challenges India faces in managing climate physical risks and the steps needed to build a comprehensive framework for climate adaptation.