Asia-Pacific Climate Report 2024

Introduction to the Asia-Pacific Climate Report 2024

The Asian Development Bank (ADB) recently released its Asia-Pacific (APAC) Climate Report 2024. This report highlights the alarming economic impacts of climate change on the Asia-Pacific region, underscoring the urgent need for action.

Projected Economic Consequences of Climate Change

The report projects significant economic downturns for the APAC region due to climate change. These losses are expected to intensify over the coming decades, impacting national economies severely.

• GDP Decline by 2070: The APAC region could experience a substantial 17% decline in GDP by the year 2070 under current climate trajectories.
• Accelerated Decline by 2100: Under a high emissions scenario, this decline is projected to worsen dramatically, reaching up to 41% of GDP by 2100.

Country-Specific Economic Impacts

Several countries within the Asia-Pacific region are particularly vulnerable to these economic impacts, facing considerable reductions in their national output.

• India: Is projected to face a significant 24.7% GDP drop by 2070, making it one of the most affected major economies.
• Other Severely Affected Nations: Bangladesh could see a 30.5% GDP decline, Vietnam 30.2%, and Indonesia 26.8% by 2070, indicating widespread regional vulnerability.

Key Drivers of Economic Losses

The report identifies several critical factors contributing to the anticipated economic damages across the Asia-Pacific region. These drivers highlight diverse vulnerabilities.

• Sea Level Rise: By 2070, an estimated 300 million people in the region may be at risk of coastal flooding. Annual damages from this phenomenon could reach an astounding USD 3 trillion.
• Labour Productivity Decline: The APAC region as a whole faces a 4.9% GDP loss due to reduced labour productivity. India's potential loss in this area is even higher, projected at 11.6%.
• Cooling Demand: Rising temperatures will significantly increase the demand for cooling, leading to a regional GDP reduction of 3.3%. For India, this decline is projected to be 5.1%.

Climate-Induced Disasters and Their Costs

The frequency and intensity of climate-induced disasters are set to escalate, causing immense physical and economic damage across the Asia-Pacific region.

• Riverine Flooding: By 2070, damages from riverine flooding could hit USD 1.3 trillion, affecting approximately 110 million people. India alone may suffer USD 400 billion in residential and USD 700 billion in commercial losses from this.
• Storms & Landslides: More intense storms are expected to escalate flooding events. Furthermore, landslides on the India-China border may increase by 30-70% under severe warming scenarios, posing significant risks to infrastructure and lives.