Manila: New research by the Asian Development Bank (ADB) predicts that under a high-end greenhouse gas emissions scenario, climate change could reduce gross domestic product (GDP) in developing Asia and the Pacific by 17% by 2070, with potential losses escalating to 41% by 2100. Rising sea levels and declining labor productivity are poised to cause the most significant impacts, disproportionately affecting lower-income and fragile economies.
According to United News of Bangladesh, the findings were revealed in the first edition of the ADB’s Asia-Pacific Climate Report, which outlines a series of detrimental effects poised to impact the region. The report warns that if the climate crisis continues unchecked, up to 300 million people could face threats from coastal inundation, and trillions of dollars in coastal assets could be damaged annually by 2070.
ADB President Masatsugu Asakawa emphasized the urgency of addressing these challenges, noting the intensified devastation caused by tropical storms, heat wave
s, and floods due to climate change. “Urgent, well-coordinated climate action that addresses these impacts is needed before it is too late,” Asakawa stated, highlighting the report’s role in guiding governments on financing urgent adaptation needs and recommending cost-effective greenhouse gas reduction policies.
The report also underscores strong regional support for climate initiatives, with a recent ADB climate change perception study showing that 91% of respondents across 14 regional economies view global warming as a serious issue, calling for more ambitious government measures. Additionally, it stresses the need for accelerated adaptation responses and significantly increased adaptation-focused climate finance.
While regional countries require annual investment between $102 billion and $431 billion to adapt to global warming, the tracked adaptation finance in 2021-2022 amounted to only $34 billion. Despite government regulation reforms and heightened awareness of climate risks attracting new private c
limate capital sources, the report calls for substantially greater private investment.
On mitigation, the report suggests that the region is well-positioned to harness renewable energy and transition to net zero. It advocates for the advancement of domestic and international carbon markets to achieve climate action objectives cost-effectively.