05-November-2024-Editorial

ASIA-PACIFIC CLIMATE REPORT 2024

The Asian Development Bank (ADB) has published its Asia–Pacific Climate Report 2024, focusing on the economic effects of climate change in the Asia-Pacific region.

The report highlights severe risks to regional GDP, labor productivity, and ecosystems if greenhouse gas emissions remain high. It also emphasizes the urgent need for climate action, financing, and adaptation strategies to mitigate these impacts.

Asia-Pacific Climate Report 2024

Economic Impacts of Climate Change

GDP Losses:

• By 2070, the Asia-Pacific (APAC) region could experience a 17% drop in GDP under high greenhouse gas (GHG) emissions.
• This could worsen, with a potential 41% GDP reduction by 2100 if emissions remain unchecked.
• India may see a 24.7% GDP decrease by 2070, while Bangladesh, Vietnam, and Indonesia could lose 30.5%, 30.2%, and 26.8% of GDP, respectively.

Main Drivers of Economic Losses:

• Sea Level Rise: Coastal flooding due to rising sea levels could impact up to 300 million people by 2070, with potential annual damages reaching USD 3 trillion.
• Decline in Labor Productivity: The APAC region could face a 4.9% GDP loss from reduced labor productivity, with India’s losses projected at 11.6%.
• Cooling Demands: Increased cooling needs due to higher temperatures may reduce regional GDP by 3.3%, with India seeing a larger impact at 5.1%.

Impact of Climate Change on Natural Disasters

River Flooding:

• Annual river floods could cause damages worth USD 1.3 trillion across the APAC region by 2070, affecting over 110 million people.
• India’s losses could include over USD 400 billion in residential damages and over USD 700 billion in commercial damages.

Storms and Rainfall:

• Tropical storms and heavy rainfall are likely to intensify, leading to more severe floods and landslides, particularly in mountainous areas near the India-China border. Landslide frequency could rise by 30-70% with extreme warming.

Effects on Forests and Ecosystems

Forest Productivity:

• By 2070, climate change could reduce forest productivity across the APAC region by 10-30% in high-emission scenarios.
• India, Vietnam, and Southeast Asia may face over 25% losses, whereas regions like China and Central Asia might see under 5% losses.

Steps Needed for Climate Improvement

Net-Zero Targets and Gaps:

• Out of 44 economies in Asia, 36 have set net-zero targets, but only four have made these legally binding.
• India and China aim to achieve net-zero by 2070 and 2060, respectively, which is later than many OECD countries (32 of 38 OECD economies have net-zero targets, with 23 legally committed by 2050).
• Clearer policies and more financing support are crucial for APAC to enhance its climate commitments. The ADB can play a role in supporting these efforts.

Climate Finance:

• The APAC region requires between USD 102–431 billion annually for climate adaptation, far more than the USD 34 billion raised from 2021 to 2022.
• Increased private investment and stronger policies are essential to achieve these targets, along with recognizing climate risks and regulatory changes to attract private sector funding.

Renewable Energy:

• The report highlights the APAC region’s potential for a transition to renewable energy as a path to achieving net-zero emissions.
• Utilizing both domestic and international carbon markets is suggested as a cost-effective way to promote climate action.

About the Asian Development Bank (ADB)

Establishment and Mission:

• Founded in 1966, the ADB is a regional bank committed to economic development and poverty reduction in Asia.
• It offers loans, technical assistance, and grants for projects in infrastructure, education, healthcare, and climate change.

Membership and India’s Role:

• The ADB has 69 members, including 49 from Asia and the Pacific.
• As a founding member, India ranks as the fourth-largest shareholder in the Asian Development Bank (ADB) and has been its leading borrower since 2010.

Headquarters: Manila, Philippines.

Conclusion

The ADB’s Asia-Pacific Climate Report 2024 highlights the critical economic risks and natural disaster vulnerabilities facing the APAC region due to climate change. With potential GDP losses, increasing disaster damages, and declining productivity, the report calls for urgent action through adaptation measures, climate finance, and renewable energy investments to help the region achieve a sustainable and resilient future.