China ranks first in the world for expected annual GDP losses from climate-induced natural disasters. At the same time, China has experienced an unprecedented level of urban growth with exceptional speed. In 2020, more than 60% of China’s population (840m inhabitants) live in cities. The combination of urban growth and climate vulnerability poses significant challenges to China’s sustainable development. Extreme weather events caused expected annual economic losses of up to 1.3 percent of GDP.

The project will empower local pilot cities with an Integrated Climate Risk Management (ICRM) approach to identify climate hazards, exposures, and vulnerabilities. Based on the risk analysis, the Chinese government can analyze occurrence probability, frequency, and severity due to climate change; localize geographic locations and values of assets, and quantify the economic losses. By incorporating comprehensive socioeconomic impacts, local governments are enabled to apply climate adaptive, risk-informed measures for selected city areas and their rural surroundings to protect assets, businesses, and individuals.