Climate Protection Bill: India Faces $200 Billion Annual Cost by 2050 to Counter 2°C Warming

New Delhi: The threat of climate change has intensified, demanding urgent and large-scale action in India. A new report by McKinsey Global Institute warns that if global temperatures rise by 2°C, India—and the broader China region—will need to spend over $200 billion annually (around ₹18.6 lakh crore) by 2050 on climate protection. Currently, India spends just $15 billion (≈₹1.3 lakh crore), covering only 13% of the required expenditure, leaving most of its population exposed to heatwaves, floods, droughts, and other climate hazards.

The report, Advancing Adaptation: Mapping Costs from Cooling to Coastal Defense, provides a detailed analysis of the costs required to protect against climate-related risks. Globally, 4.1 billion people face climate threats, yet only 1.2 billion have adequate protection according to developed-country standards. India ranks among the countries with the heaviest financial burden due to its large at-risk population.

Current Spending vs Required Investment
India currently invests $15 billion annually to mitigate extreme weather, far short of the actual need. Even if low-income countries maintain their existing protection measures, they would cover only 15% of the cost necessary to safeguard their populations. In India, the per capita adaptation cost stands at $125—more than three times the per capita allocation in the 2025 central budget.

Funding the Climate Adaptation Effort
More than half of the adaptation cost is expected to come from private individuals and companies, through investments in air conditioning, flood defenses, and crop shading. Government spending, including coastal embankments and early warning systems, would account for roughly 30%, with the remaining 20% dedicated to mixed initiatives such as improved irrigation systems.

Climate adaptation means reshaping society and the economy to withstand changing weather patterns—installing more cooling solutions, elevating homes in flood-prone areas, and strengthening infrastructure. The report emphasizes that delayed action will drastically increase the cost of protection. Climate resilience is not solely the government’s responsibility; every individual and corporate entity must contribute to avert an escalating crisis.