Recently, the Asian Development Bank (ADB) released its Asia-Pacific (APAC) Climate Report 2024, highlighting alarming economic, environmental, and social impacts of climate change on the Asia-Pacific region, with specific concerns for countries like India.
Key Highlights of the Asia-Pacific Climate Report 2024
Economic Impacts of Climate Change
- Potential GDP Decline:
- The APAC region could experience a 17% GDP reduction by 2070 under high-end greenhouse gas (GHG) emissions.
- By 2100, this figure may escalate to 41% under continued high GHG emissions.
- Country-specific projections:
- India: 24.7% GDP decline by 2070.
- Bangladesh: 30.5% GDP loss.
- Vietnam: 30.2% GDP reduction.
- Indonesia: 26.8% GDP decline.
Main Drivers of Economic Losses
- Sea Level Rise:
- Coastal flooding risks for up to 300 million people by 2070.
- Annual damages could rise to USD 3 trillion by 2070.
- Labour Productivity Decline:
- Regional GDP may see a 9% loss due to reduced productivity.
- India’s losses could be as high as 6%.
- Cooling Demands:
- Rising temperatures could cut APAC’s GDP by 3%.
- India faces sharper GDP reductions of 1% due to increased cooling requirements.
- Climate Change Impact on Natural Disasters
- Riverine Flooding:
- By 2070, annual flooding could cause damages worth USD 1.3 trillion across APAC, affecting over 110 million people.
- India’s projected losses include:
- Residential damages exceeding USD 400 billion.
- Commercial damages surpassing USD 700 billion.
- Storms and Rainfall:
- Increased tropical storm intensity and rainfall will worsen floods and landslides.
- Mountainous regions (e.g., India-China border) may see a 30-70% rise in landslides under severe warming scenarios.
Implications for Forests and Ecosystems
- Forest Productivity Decline:
- The APAC region’s forest productivity is projected to drop by 10-30% by 2070 under high-emission scenarios.
- India’s losses may exceed 25%, similar to Vietnam and Southeast Asia.
- Regions like China and Central Asia may see losses under 5%.
Steps Needed for Improvement
- Net-Zero Targets and Gaps:
- 36 out of 44 economies in Asia have set net-zero targets, but only 4 countries have legally enshrined these goals.
- India aims for 2070 and China for 2060, lagging behind OECD economies, where 32 of 38 countries have net-zero targets, with 23 legally committed by 2050.
- Developing Asia requires clearer policies and increased climate financing.
- Climate Finance:
- Annual climate adaptation funding needed: USD 102-431 billion (compared to USD 34 billion in 2021-22).
- Emphasis on private investment and regulatory reforms to attract climate-related funding.
- Renewable Energy:
- Focus on leveraging renewable energy for a net-zero transition.
- Advocacy for domestic and international carbon markets to reduce emissions cost-effectively.
The ADB’s APAC Climate Report 2024 underscores the urgent need for coordinated climate action to mitigate economic and environmental losses in Asia-Pacific. Immediate steps in policy formulation, financing, and renewable energy adoption are critical to safeguarding the region’s future.
