In News:

Amid rising climate-induced disasters—floods, heatwaves, droughts—the Union Home Minister recently called for proactive climate risk assessments. India, however, lacks a comprehensive and standardised system to assess Climate Physical Risks (CPR), exposing critical gaps in preparedness.

What is Climate Physical Risk (CPR)?

Definition: CPR refers to the potential damage from:

• Acute events: Floods, cyclones, heatwaves.
• Chronic stresses: Changing monsoon patterns, droughts.

IPCC Formula:

CPR = Hazard × Exposure × Vulnerability

• Hazard: Climate threats like floods or wildfires.
• Exposure: Presence of people/assets in risk-prone areas.
• Vulnerability: System's capacity to withstand and recover.

Why CPR Assessment Matters for India

• High Risk: Over 80% of Indians reside in districts exposed to climate disasters (World Bank).
• Systemic Threat: Affects not just the environment, but public health, agriculture, economy, and national security.
• Future-proofing Development: Long-term planning must consider CPR for sustainable infrastructure and financial stability.

Challenges in India’s CPR Management

• Fragmented Efforts: Multiple agencies (IMD, IITs, NIDM) conduct isolated studies with no integration.
• Lack of Standardised Data: No central repository for CPR metrics at the district or panchayat level.
• Modelling Limitations: Global models like RCPs and SSPs fail to capture India's hyper-local climate variations.
• Private Sector Constraints: Businesses lack tools to evaluate climate risks across supply chains.

Global Best Practices

• Mandatory Climate Disclosures: Global frameworks like ISSB S2 and EU Taxonomy require companies to report CPRs.
• Adaptation as Priority: Nations, including the Global North, are investing in adaptation infrastructure, recognizing its economic returns.
  • UNEP estimates: $1 in adaptation = $4 saved in disaster recovery.

Initiatives by India

• Adaptation Communication (2023): India’s first report to the UNFCCC under Article 7 of the Paris Agreement.
• National Adaptation Plan (NAP): In progress; covers 9 thematic sectors with district-level focus.
• RBI Framework: Climate risk integrated into financial supervision and regulatory assessments.