Manila: A new research report by the Asian Development Bank (ADB) reveals that climate change could significantly impact the gross domestic product (GDP) of developing Asia and the Pacific, with projections indicating a potential reduction of 17% by 2070 under a high-end greenhouse gas emissions scenario. This figure could rise to a staggering 41% by 2100 if current trends continue.
According to Emirates News Agency, the findings were presented in the inaugural issue of ADB’s Asia-Pacific Climate Report, highlighting the severe consequences of climate change on the region. Key factors contributing to these economic losses include rising sea levels and reduced labor productivity, with lower-income and fragile economies expected to suffer the most. The report warns that if the climate crisis persists, up to 300 million people could face threats from coastal inundation, with trillions of dollars worth of coastal assets at risk of damage by 2070.
ADB President Masatsugu Asakawa emphasized the urgency of coordin
ated climate action, stating, ‘Climate change has supercharged the devastation from tropical storms, heat waves, and floods in the region, contributing to unprecedented economic challenges and human suffering.’ He highlighted that the climate report offers valuable insights into financing urgent adaptation needs and recommends policies for governments in developing member countries to reduce greenhouse gas emissions cost-effectively.
The report also notes strong regional public support for climate action. A climate change perception study by ADB this year found that 91% of respondents across 14 regional economies consider global warming a serious issue, with many advocating for more ambitious government interventions.
To address the escalating climate risks, accelerated adaptation responses are necessary, along with a significant increase in adaptation-focused climate finance. The report estimates that annual investment needs for regional adaptation could range from $102 billion to $431 billion, far exceedi
ng the $34 billion tracked in adaptation finance in 2021-2022. While government regulation reforms and heightened recognition of climate risks are attracting new private climate capital, far greater private investment flows are essential.
On the mitigation front, the report suggests that the region is well-positioned to adopt renewable energy in its transition to net zero. Advancing domestic and international carbon markets could also play a crucial role in achieving climate action goals cost-effectively.