Climate change poses significant threats to the Asia-Pacific region, with the potential to drastically reduce economic output and exacerbate existing social inequalities. Recent research from the Asian Development Bank (ADB) gives substantial insight, indicating the region could experience up to a 41% decrease in gross domestic product (GDP) by 2100 if emissions continue to soar. These figures include alarming projections for countries like the Philippines, which could see its GDP slashed by 18% by 2070.
This sobering data springs from ADB's inaugural Asia-Pacific Climate Report, which outlines the wide-ranging impacts of climate change across various sectors. According to David Raitzer, a senior economist at ADB, about half of the estimated GDP losses for the Philippines would stem from rising sea levels and related repercussions such as flooding. “A larger share than the regional average would come from natural resource-based sectors like agriculture, fisheries, and forestry,” Raitzer explained during a recent webinar.
The ADB warns of dire consequences for lower-income countries and populations, who are the most vulnerable to climate-induced shocks. With labor productivity expected to decline alongside increasing natural disasters, the outlook is grim for these economies. The overall economic damages by 2100 could translate to losses exceeding trillions of dollars annually, driven primarily by factors such as sea level rise, flooding, and disruptions to labor.
Highlighting the urgency of the situation, ADB President Masatsugu Asakawa remarked, “Climate change has supercharged the devastation from tropical storms, heat waves, and floods, contributing to unprecedented challenges and suffering.” The organization stresses the need for prompt, coordinated climate action to mitigate these impacts before it’s too late.
Surveys reveal substantial public concern about climate change across the region, with 91% of respondents indicating they see it as serious. The findings show nearly 90% of Filipinos share this sentiment, and many are already feeling the effects of climate change or expect to within the next decade. Despite acknowledging the government's efforts to address climate change, 59% of survey participants believe significant investment is still needed for resilient infrastructure.
More than just physical impacts, climate change is reshaping perceptions and policies. Many respondents favor initiatives like carbon taxes and regulations to limit greenhouse gas emissions, signaling public support for more aggressive government action.
The ADB report also highlights the necessity for substantial investments—between $102 billion and $431 billion annually—for climate adaptation. This is starkly contrasted with the mere $34 billion tracked as adaptation finance across the region recently. The need for new private investments is clear, as government reforms and increased acknowledgment of climate risks are starting to draw some climate capital—but it’s not enough.
This unprecedented focus on climate action and sustainable growth is poised to shape the future of the Asia-Pacific region. Countries are encouraged to adopt renewable energy sources and develop both domestic and international carbon markets to transition toward net zero emissions more effectively. This could be the path to tackling the pressing challenges posed by climate change without overly burdening their economies.
