Mumbai: Investing just 2% of capital expenditure (CapEx) in climate resilience measures across India’s planned renewable energy projects could reduce potential climate-related losses by nearly half—from USD 55 billion to USD 27 billion—saving an estimated USD 28 billion and delivering a 6x return on investment, according to a new report by Zurich Kotak General Insurance and Zurich Resilience Solutions.
The report highlights that India’s renewable energy sector is expanding rapidly, with the country becoming the world’s third-largest renewable energy capacity holder in 2026. Installed non-fossil fuel capacity reached 283.5 GW by March 2026, keeping India on track to achieve its target of 500 GW by 2030.
Based on an assessment of 871 planned renewable energy sites, representing nearly 90% of India’s renewable energy pipeline across 10 states and union territories, the study found that almost 90% of planned capacity is expected to face high or critical exposure to climate risks by 2030.
According to the report, approximately USD 55 billion worth of renewable energy assets could be exposed to climate-related risks if resilience measures are not incorporated during project planning and construction. The biggest threats identified include tornadoes, floods, wildfires, and hailstorms, which could cause significant damage to infrastructure and disrupt power generation.
The report recommends integrating climate risk assessments into project planning, conducting stress tests for high-risk assets, embedding hazard-specific resilience standards in procurement, strengthening supporting infrastructure, and using resilience metrics to improve access to financing and insurance.
Ajey Hegde, Head – Commercial Insurance, Zurich Kotak General Insurance, said building resilience from the outset can protect investments, improve insurability, and enhance confidence among lenders and investors.
Mark Fletcher, Head of Zurich Resilience Solutions, Asia Pacific, noted that incorporating resilience measures during the design and construction phase can significantly reduce future losses while improving the long-term bankability and reliability of renewable energy assets.
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The report concludes that as India’s clean energy transition accelerates, integrating climate resilience into renewable energy planning will be essential to protecting infrastructure, ensuring energy security, and delivering sustainable long-term returns.
