Recently,  the United Nations Office for Disaster Risk Reduction (UNDRR) released the Global Assessment Report on Disaster Risk Reduction (GAR) 2025, titled “Resilience Pays: Financing and Investing for our Future”.

Key Findings of GAR 2025

• Rising Economic Costs of Disasters: Disaster-related costs now exceed $2.3 trillion annually when cascading impacts and ecosystem damages are considered, highlighting an unsustainable economic trajectory.
  • Between 1970–2000, disaster costs averaged $70–80 billion annually; this figure rose to $180–200 billion between 2001–2020, showing a consistent upward trend.
• Low Insurance Coverage Globally: Most disaster impacts remain uninsured, even in developed nations, making recovery more difficult and increasing long-term financial vulnerability.
• High Vulnerability of Developing Nations: As of 2023, only 49% of Least Developed Countries (LDCs) had access to multi-hazard early warning systems, leaving many exposed to avoidable risks.
• Insufficient Investment in Risk Prevention: Only 2% of development aid is directed toward Disaster Risk Reduction (DRR), despite evidence that $1 invested in DRR saves $15 in recovery costs.

Impact of Disaster in India

• Infrastructure Losses : In 2019, Cyclone Fani caused $1.2 billion in damages to Odisha’s power infrastructure, showing the vulnerability of critical sectors to extreme weather.
• Displacement: India witnessed 10 to 30 million internal displacements due to climate-related disasters, demonstrating the country’s exposure to climate-induced migration and instability.
• Impact on Living Standards: Changing weather patterns and their effect on agriculture and livelihoods could reduce living standards by 9% by 2050, particularly in rural and vulnerable communities.
• Low Insurance Penetration: India’s insurance coverage remains below 1%, severely limiting the country’s ability to share or transfer disaster-related risks.

About the United Nations Office for Disaster Risk Reduction (UNDRR)

• The UNDRR is the UN’s lead agency for disaster risk reduction, responsible for supporting global efforts to build resilient societies and reduce disaster impacts.
• Establishment: UNDRR was established in 1999 and functions under the United Nations Secretariat, with a mandate to implement the global framework for disaster risk reduction.
• Flagship Reports: The Global Assessment Report (GAR) is UNDRR’s biennial flagship publication that evaluates global progress, risks, and financial dimensions of disaster resilience.

Key Initiatives under UNDRR

• UNDRR supports the Sendai Framework for Disaster Risk Reduction (2015–2030), which guides international efforts to reduce disaster risks.
• The Sendai Framework for Disaster Risk Reduction is the successor to the Hyogo Framework for Action (2005–2015), building on past lessons to create a more robust disaster risk reduction strategy.
• The framework outlines seven global targets, including reducing disaster mortality, economic loss, and infrastructure damage, while improving  early warning systems and risk understanding.
• National Commitment: The framework emphasizes a shared responsibility among governments, communities, and businesses, calling for risk-informed investment and systemic planning at all levels.

Conclusion

The GAR 2025 reinforces the urgent need for a paradigm shift towards risk-informed development. For countries like India, aligning infrastructure, finance, and climate policies with disaster resilience is essential to safeguard lives, economies, and ecosystems in a climate-changed world.