In a new research presented in the inaugural issue of “Asia-Pacific Climate Report”, ADB estimates that the region’s GDP could shrink by 17 percent by 2070 under a high-end greenhouse gas emissions scenario, with losses potentially rising to 41 percent by 2100.
According to ADB, accelerating climate adaptation is crucial to mitigate these risks, requiring annual investments of between $102 billion and $431 billion—far exceeding the $34 billion recorded in 2021–2022.
Extensive economic and social threats
The report outlined the extensive economic and social threats climate change poses to the region, from rising sea levels to decreased labor productivity, with lower-income and fragile economies facing the hardest impact.
If the climate crisis continues at its current pace, up to 300 million people could face threats from coastal inundation, and trillions of dollars in coastal assets could be damaged annually by 2070, according to the report.
Call for action
ADB President Masatsugu Asakawa said: “Climate change has supercharged the devastation from tropical storms, heat waves, and floods, leading to unprecedented economic challenges and human suffering.”
“Urgent, well-coordinated action that addresses these impacts is needed before it is too late,” he said.
The report emphasized public support for climate action. ADB’s 2024 climate perception study found that 91 percent of respondents across 14 economies view global warming as a critical problem, with many seeking more ambitious government measures.
Private sector investment, regulatory reforms sought
On the required climate adaptation investment, the report said government regulation reforms and enhanced recognition of climate risks are helping attract new sources of private climate capital. “But far greater private investment flows are needed,” it added.
The report also highlights the potential of renewable energy and carbon markets to help drive a cost-effective transition to net-zero emissions.
ADB said it remains committed to a sustainable, inclusive Asia and the Pacific and calls for increased private sector investment and regulatory reform to drive critical climate financing.
