Building resilience with innovation to tackle the climate emergency

More frequent and intense climate change-induced natural disasters are not a future scenario – they are happening now. But, solutions are available: governments and communities can use emerging digital technologies in a spirit of collaboration to manage the threat.

Escalating Climate Disaster: A Policy Response

The human and financial costs of natural disasters driven by climate change are increasing. Governments must develop a policy response that deploys innovative digital technologies through society-wide collaborative approaches to control costs and mitigate harm.

  • The number of extreme weather events, such as heatwaves, wildfires and hurricanes, has increased in recent years. If these trends persist, extreme events could increase to 560 a year by 2030 – 1.5 a day – representing a 40% increase over 2015. In addition to human suffering, the costs are huge; in 2022, natural disasters cost governments and businesses more than $200 billion – 40% more than the annual average for the past 20 years (excluding earthquakes) [1].

  • Disaster impacts disproportionately affect low-income populations with fewer resources and less scope for adaptation.

  • Global sea levels have risen by 15-25cm since 1900, and around 1 billion people living in low-lying cities and coastal settlements are projected to be at risk from sea-level rise and other climatic hazards by mid-century[2].

  • Developing nations will together require an annual financial commitment ranging from an estimated $215 billion to $387 billion throughout the present decade to effectively address and mitigate the impacts of global warming[3].

Climate-change-related events create food and water insecurity, displacement and migration risks, health risks, infrastructure damage, and biodiversity loss. Tackling this demands a coordinated policy response that deploys new technology for risk reduction and impact mitigation.

Data-driven and digital technologies have the potential to manage such interconnected risks; technology implementations include early-warning systems, multi-hazard platforms, Earth observation, and remote sensing. Technology tools include drones, the Internet of Things (IoT), augmented and virtual reality (AR and VR), advanced computing, and AI.

Collaborative approaches between governments, private companies, academic institutions, and communities are needed to control costs and maximize positive outcomes through pooling resources, knowledge, and innovative technologies.

  • Public-private partnerships are pivotal in driving scalable climate-resilience solutions.

  • Policy and financial support for technology integration is urgently needed, developing the approach adopted by the loss and damage fund announced in late 2023 at COP28 in Dubai.

  • Policies to bridge the digital divide must recognize that climate and disaster risk data is a public good and a core component in collaborative climate disaster impact management and risk mitigation.

  • Building a culture of innovation and preparedness is a priority. Governments must develop comprehensive national frameworks aligned to their Nationally Determined Contributions and included in their National Adaptation Plans.

While collaboration is essential, governments must lead with comprehensive policy frameworks that incentivize innovation and ensure robust adaptation strategies are in place, including investment in R&D and support for community engagement.


[1] World Economic Forum (WEF), Innovation and Adaptation in the Climate Crisis: Technology for the New Normal, 2024, https://www3.weforum.org/docs/WEF_Innovation_and_Adaptation_in_the_Climate_Crisis_2024.pd
[2] United Nations Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Impacts, Adaptation and Vulnerability, https://www.ipcc.ch/report/sixth-assessment-report-working-group-ii/
[3] United Nations, UNEP Adaptation Gap Report, 2023, https://www.unep.org/resources/adaptation-gap-report-2023

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Sanjay Jain

Sanjay Jain

Partner, Financial Services Consulting Leader, PwC Middle East

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Anand Balasubramanian

Anand Balasubramanian

Partner, Financial Services Consulting, PwC Middle East

Tel: +971 56 603 0036