According to the ADB, developing Asian countries require annual funding ranging from $102 billion to $431 billion to effectively combat climate change. This figure starkly contrasts with the mere $34 billion committed during 2021-2022 for these purposes. In 2021, developing Asia contributed approximately half of the global greenhouse gas emissions, with China accounting for two-thirds and South Asia contributing about 20%. Despite lower per capita emissions compared to Europe, Japan, and North America, Asia is home to nearly 70% of the world’s population, amplifying its environmental impact.
The report indicates that while many countries in the region have signed climate change agreements and proposed national plans to cut carbon emissions, most still lack a clear roadmap to achieve “net zero” emissions. Instead, governments have continued to provide substantial support for fossil fuels—amounting to $600 billion in 2022—which discourages a shift toward cleaner energy sources like solar and wind power.
Sea-level rise in the Asia-Pacific region is occurring at nearly double the global average, posing a severe threat to approximately 300 million people facing coastal flooding, particularly if Antarctic ice sheets collapse. Additionally, worsening storms are projected to result in annual losses averaging $3 trillion for nations such as China, India, Bangladesh, and Vietnam.
Rising temperatures are also negatively impacting worker productivity and health. The report suggests that in a worst-case scenario of high carbon emissions, regional economies could see a 17% decline in GDP by 2070. This scenario would double the destructive potential of tropical cyclones and storms due to increasingly unstable and extreme weather conditions.
Current trends show that the impacts of warming are already “locked in,” with decades of consequences ahead. While the full implications of climate “tipping points,” such as polar ice melt and ocean warming, are not entirely understood, ecosystems that typically sequester carbon—like oceans and tropical forests—are becoming sources of carbon emissions through events such as wildfires.
The ADB argues that the benefits of limited adaptation to climate change far outweigh the costs. Their estimates suggest that aggressive decarbonization could create 1.5 million jobs in the energy sector by 2050 and prevent 346,000 deaths annually due to air pollution by 2030.
Under high-emission climate scenarios, poverty levels could rise by 64% to 117% by 2030, with regional economies facing an average decline of about 17%. The worst impacts are expected in Bangladesh, Vietnam, Indonesia, and India, with deteriorating conditions over time.
The most significant losses are anticipated due to declines in productivity, followed by reductions in fisheries, agriculture, and flooding. However, governments can take proactive measures to mitigate the worst damages. For example, Bangladesh’s investment in flood shelters has significantly reduced deaths from devastating storms, bringing numbers down to below 100 in recent years.
The report emphasizes that the effects of climate change are unavoidable, necessitating robust policy responses to minimize losses and damages. As Asia grapples with these challenges, urgent action is required to secure a sustainable future for its nations and populations.
