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 $55bn to $27bn, according to a report by Zurich Kotak General Insurance and Zurich Resilience Solutions.
The study estimates savings of around $28bn and highlights the growing importance of integrating resilience measures into renewable energy infrastructure as climate risks intensify. India became the world’s third-largest holder of renewable energy capacity in 2026, with installed non-fossil fuel capacity reaching 283.5 gigawatts (GW) as of March. Renewable energy generation is expanding by around 11% annually, keeping the country on track to meet its target of 500 GW of non-fossil capacity by 2030.
The report analysed 871 planned renewable energy sites across 10 states and union territories, representing approximately 90% of India’s renewable energy pipeline. It found that nearly 90% of planned capacity is expected to face high or critical climate risk exposure by 2030, with a 15% to 30% probability of experiencing a major climate-related event.
Approximately $55bn worth of renewable energy assets are currently exposed to climate hazards, while 66% of the country’s project pipeline is projected to fall within the highest risk categories within the next four years.
Zurich Kotak General Insurance Head of Commercial Insurance Ajey Hegde said resilience should be embedded from the outset. “Building resilience in from the start can help protect investment value, improve insurability and reduce future losses, while giving public and private capital greater confidence to invest,” he said. The report recommends mandatory climate risk screening, stress testing of high-risk assets, resilience standards in procurement, broader resilience planning and the use of resilience metrics to attract financing.