Incentive mechanisms for Disaster Resilient Infrastructure

Methods and instruments that promote and/or facilitate the upgrading of existing infrastructure and the building of new resilient infrastructure.


1. Incentive mechanisms may be promoted by the public and private sectors and in joint public-private ventures. This includes incentives provided by finance, insurance, real estate and government stakeholders.

2. Incentives can be built into mortgages, insurance policies, tax incentives, grants, and other mechanisms.

3. Incentives are necessary to promote an increased investment in corrective and prospective disaster risk reduction, which are intended to reduce overall societal costs of disasters in the short, medium and long terms.


Reference to Note 1 and 2: Multi-Hazard Mitigation Council (2020). A Roadmap to Resilience Incentivization. Porter, K.A. and Yuan, J.Q., eds., National Institute of Building Sciences, Washington, DC, 33 p.


Incentive mechanisms to strengthen building control and planning in Kathmandu

Nepal, one of the most seismically active regions in the world, has a long history of destructive earthquakes, such as the 2015 Gorkha earthquake that killed 8,964 people and injured 21,952 others. Kathmandu Valley is the centre of Nepal's political, commercial, educational, administrative, and cultural activities, with nearly half of the country’s urban population concentrated in this region. Municipal and city governments that comply with minimum building performance measures focusing on disaster risk reduction are awarded access to intergovernmental awards and cash awards as financial incentives to increase resilience in the valley. Existing bylaws in Kathmandu Valley provide incentives for developers to avoid hazard-prone areas and build disaster-resilient buildings by reducing registration fees and providing access to training in earthquake-resistant construction. This also includes income-generating opportunities for masons and carpenters. Extra floor construction incentives are also offered to developers who facilitate well-managed new housing and commercial buildings in residential zones, town extension zones, or urbanizing village development committees.


Source: McDonald, K. (2016). Incentives for reducing disaster risk in urban areas. Asian Development Bank.