Sustainable Infrastructure and Climate Change: Natural Disaster Risk Insurance Solutions for Belt and Road Countries

There is a strong relationship between climate change and natural catastrophes. Climate change pertains to enduring alterations in temperature, rainfall, and additional atmospheric conditions, which arise from human actions, predominantly the combustion of fossil fuels. Natural catastrophes encompass extensive natural disasters such as hurricanes, floods, and droughts, which result in extensive destruction on a massive scale. Chapter's objectives include analysis of infrastructure sustainability of the Belt and Road Initiative (BRI) countries located on transport corridor China—EU. BRI aiming at the creation of infrastructure for international trade between African, European and Asian countries, according to the World Bank, will increase the volume of trade by 30%, the volume of foreign investment by 70%, can help the upliftment of 7.6 million individuals from severe poverty and improve the conditions for 32 million individuals in moderate poverty. Application the insurance-linked securities (ILS) mechanisms can assist in rapid access to finances for local communities in case of natural catastrophes. This is important as over 62% of the region's transport infrastructure is at risk from natural disasters, referring to report “Climate Change and Earthquake Impacts in the Asia–Pacific Region Energy and Transport Infrastructure Assessment” (Asian Development Bank 2022. Climate Change and Earthquake Exposure in Asia and The Pacific Assessment of Energy and Transport Infrastructure. Accessed 5 June 2023 from 10.22617/TCS178839-2). Employed methodology included studying the statistical data and analysis of querying the insurance professionals on insurance-based approach to the implementation of SDGs and natural disaster protections of developing countries. As a result, insurance coverage for natural catastrophes is an important issue for these countries linked to Sustainable Development Goals (SDGs): climate change, sustainable infrastructure, health and well-being.