Dhaka is among the top 10% in the global ranking of cities and provinces to be at risk from climate change and extreme weather, says a report of XDI (The Cross Dependency Initiative). 

Economic hubs in provinces across Asia face the highest risk of damage from extreme weather and climate change, according to a new global ranking released on Monday by XDI (The Cross Dependency Initiative) – a world-leading independent physical climate risk analysis company.

The XDI Gross Domestic Climate Risk dataset compares over 2,600 states and provinces around the world according to modelled projections of damage to buildings and properties from extreme weather and eight climate change such as flooding, sea level rise, coastal inundation, extreme heat, drought, extreme wind etc.

In 2050, more than half of the top 200 provinces ranked by overall damage from extreme weather are in Asia, with Chinese provinces particularly at risk, reads a press release. 

The report highlighted also highlighted the Aggregated Damage Ratio for 2050. Aggregated Damage Ratio refers to the total amount of damage to the built environment in a particular province. As per the global positioning, Dhaka stands at 101, Chittagong stands at 156, Rajshahi stands at 308, Sylhet at 401, Mymensingh at 410, Khulna 519, Barishal 713 and Rangpur 750. It shows that the concentration of built environment is extremely higher in Dhaka, which is also high at risk from climate change and extreme weather. 

The findings from the XDI Gross Domestic Climate Risk ranking underscore the importance of climate-resilient investment frameworks for Asia and pricing physical climate risk into supply chains. 

"In terms of overall scale of damage risk, and in terms of risk escalation, Asia has the most to lose as climate change extreme weather increases, and the most to gain from preventing worsening climate change and accelerating climate resilient investment," said XDI CEO Rohan Hamden.

This is the first time there has been a physical climate risk analysis focused exclusively on the built environment, comparing every state, province and territory in the world. It is particularly significant for investors, as extensive built infrastructure generally overlaps with high levels of economic activity and capital value.

The XDI Gross Domestic Climate Risk comparison of physical climate risk for 2050 found: 

• Globally, the Chinese provinces have the highest results for damage risk of any of the provinces and territories in this analysis. This is because these provinces are large, host extensive industrial, trade, residential and commercial development and are exposed to coastal sea level rise and riverine and surface flooding.
• Highly developed and globally significant Asian economic hubs in the top 100 for damage risk include Beijing, Jakarta, Hồ Chí Minh City, Taiwan and Mumbai.
• South East Asia experiences the greatest escalation in damage from 1990 to 2050 anywhere in the world.  

"We're releasing this analysis in response to demand from investors for data on sub-sovereign and regional risk. The findings from the XDI Gross Domestic Climate Risk ranking underscore the importance of pricing physical climate risk in financial markets, including bond markets, given the amount of capital investment represented by the assets at risk in the provinces identified, the vulnerability of global supply chains, and the need for climate resilience to inform investment," said Mr Hamden

"It is crucial for companies, governments and investors to understand the financial and economic implications of physical climate risk and weigh this risk in their decision-making before these costs escalate beyond financial tipping points."

Source: The Business Standard