Developing Asian countries are at high risk of severe damage from the climate crisis and are lagging behind in funding for climate change mitigation and adaptation, according to a report by the Asian Development Bank. The report highlights the urgent need for financing in these countries, estimating that the annual costs to cope with climate change range from $102 billion to $431 billion, far surpassing the $34 billion committed in 2021-2022. Developing Asia accounted for nearly half of global emissions in 2021, with China and South Asia being significant contributors.
While most countries in the region have ratified climate change treaties and presented emission reduction plans, the report notes that clear roadmaps to achieve “net zero” carbon emissions are lacking. The report also highlights the contradiction of regional governments providing substantial support for fossil fuels like oil, gas, and coal, amounting to $600 billion in 2022. These subsidies make fossil fuels more affordable, hindering the transition to cleaner energy sources such as solar and wind power.
The report emphasizes the worsening impact of climate change on the Asia-Pacific region, with sea level rises at double the global average and potentially affecting 300 million people through coastal inundation if Antarctic sea ice collapses. Countries like China, India, Bangladesh, and Vietnam are expected to face significant damage from storm surges, with an estimated $3 trillion at risk annually. The report also warns of declining productivity and health due to higher temperatures, projecting a potential GDP decline of 17% by 2070 in a worst-case scenario of high carbon emissions.
The report underscores the importance of taking action to limit and adapt to climate change, citing potential benefits such as job creation in the energy sector and reduced deaths from air pollution. By aggressively decarbonizing the economy, up to 1.5 million energy sector jobs could be created by 2050, while preventing up to 346,000 deaths annually from air pollution by 2030. The report also warns of potential increases in poverty and economic decline in the region under a high-emissions climate scenario, with countries like Bangladesh, Vietnam, Indonesia, and India facing the worst consequences.
Governments are urged to implement stronger policy responses to minimize the loss and damage from climate change. The report highlights successful examples such as flood shelters in Bangladesh, which have significantly reduced deaths from catastrophic storms in recent years. While the impacts of climate change are unavoidable, the report stresses the importance of proactive measures to mitigate the worst effects and protect vulnerable populations and economies in the Asia-Pacific region.
