To prepare for future heat, India must come up with a viable pathway that involves a combination of three things: using government budgets to kickstart action, launching experimental heat resilience projects, and leveraging private and social sector interest where possible. International examples illustrate how each of these methods can be put into practice; India’s challenge is to integrate them into a cohesive financial strategy.

1. Effectively utilising government funds
Building long-term resilience to heat is only possible if heat-related issues are given more attention in government functions. This can be achieved by reallocating existing budget lines and establishing dedicated heat financing mechanisms in central and state budgets. Traditionally, heat has not been a priority in budgetary allocations, but some governments have taken steps to address this. For example, in the US, California has carved out a USD 300 million general fund in its budget for long-term heat resilience, while the Biden administration has earmarked USD 4.55 million under the Inflation Reduction Act (IRA), the largest climate investment fund in US history. These IRA funds are meant to help improve data collection on extreme heat and support communities in planning and evaluating community-led heat resilience projects.

2. Finding opportunities in the private sector
Another potential avenue lies within the private sector, albeit with challenges. The private sector has contributed in certain regions, such as Karachi, Pakistan, where the Start Network implemented a disaster risk financing approach in 2020, releasing pre-agreed funds for heat contingency plans during forecasted heatwaves, helping implement mitigation measures before the heatwave struck.

Similarly, in India, a collaboration between Arsht-Rock, Self-Employed Women’s Association (SEWA), and Blue Marble resulted in the creation of the Extreme Heat Income Micro-Insurance to assist women in recovering income lost due to extreme heat events. In May 2024, when temperatures crossed the heatwave threshold for multiple days, a sum as large as USD 340,000 reached 46,000 women. These women predominantly work outdoors, and so this financial assistance allowed them to consider avoiding work during dangerous heat conditions without fearing for their daily income and the additional medical costs that heat typically brings. However, like most insurance schemes, the viability of such initiatives remains uncertain in the future when payouts become massive, especially without integration into broader social security frameworks in the country.

3. Leveraging social sector partnerships
The social sector is an important link in scaling up heat resilience initiatives and ensuring they make a real difference on the ground. Civil society organisations (CSOs), with their deep-rooted connections to local communities, play a key role in helping government initiatives reach the last mile and in making sure funds, where available, reach those who need them most.

Partnerships between CSOs and the government can help local implementers achieve last-mile delivery of their initiatives. For example, as part of Jodhpur’s HAP, Mahila Housing Trust and Natural Resources Defense Council conducted awareness campaigns on cool roof initiatives targeted at women in low-income households. These were aimed at increasing adoption and ensuring that funds directed towards the initiative reach its intended audience.

Read the full article about extreme heat by Tamanna Dalal at India Development Review.