International day for Disaster Reduction

Fund Resilience, Not Disasters

The rising cost of disasters reflects the growing impact of climate change and poor development choices. Globally, countries face increasingly severe natural events, driven by extreme weather and risk-blind planning.

While direct disaster costs reach around $202 billion annually, the broader economic impact is estimated at $2.3 trillion. Developing nations suffer the most, while wealthier countries face high financial losses.

Despite this, investment in disaster risk reduction (DRR) remains minimal. Less than 1% of public budgets are allocated to DRR, and only 2% of Official Development Assistance projects included DRR goals between 2019 and 2023. Humanitarian funding for preparedness is also declining.

A major issue is that both public and private economic strategies often ignore disaster risks. The private sector, which controls 75% of investments, frequently overlooks climate threats, increasing vulnerability and potential losses.

To address this, national strategies must integrate DRR and climate adaptation. Governments should empower the private sector with regulations, risk data, and incentives to promote resilient investments.

The 2025 International Day for Disaster Risk Reduction calls for two actions: 1) increase funding for DRR in public and international budgets, and 2) ensure all development and private investments are risk-informed and resilient.

Source: https://www.un.org/en/observances/disaster-reduction-day