MANILA - The impact of climate change could reduce gross domestic product (GDP) in developing Asia and the Pacific by 17 percent by 2070, according to a new Asian Development Bank (ADB) report released on Thursday.
The Asia-Pacific Climate Report says rising sea levels and falling labor productivity would cause the "greatest losses, with lower income and fragile economies hit hardest."
If the climate crisis continues to accelerate, it warns that up to 300 million people in the region could be threatened by coastal inundation and trillions of dollars of coastal assets could be damaged annually by 2070.
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"Climate change has supercharged the devastation from tropical storms, heat waves, and floods in the region, contributing to unprecedented economic challenges and human suffering," said ADB President Masatsugu Asakawa, emphasizing the urgent need for well-coordinated climate action.
The inaugural report finds that regional public sentiment supports climate action.
In an ADB climate change perception study this year, 91 percent of respondents across 14 regional economies said they view global warming as a serious problem, with many seeking more ambitious government action.
The report adds that adaptation responses need to be accelerated to address growing climate risks and that it is imperative to greatly upscale adaptation-focused climate finance.
The report values annual investment needs for regional countries to adapt to global warming at between $102 billion and 431 billion dollars, far exceeding the 34 billion dollars of tracked adaptation finance in the region in 2021-2022.
It says that government regulation reforms and enhanced recognition of climate risks are helping attract new sources of private climate capital, but far greater private investment flows are needed.
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On the mitigation front, the report shows the region is well placed to embrace renewable energy in driving a transition to net zero and that forging ahead with domestic and international carbon markets can help achieve climate action goals cost-effectively.
