Context:
Asian Development Bank (ADB) recently published its Asia-Pacific (APAC) Climate Report 2024, which puts forth the immense economic effects of climate change in the Asia-Pacific region.
Relevance:
GS II: International Relations
Dimensions of the Article:
- Key Highlights of the Asia-Pacific Climate Report 2024
- About Asian Development Bank (ADB)
Key Highlights of the Asia-Pacific Climate Report 2024
Economic Impacts on the Asia-Pacific Region
- Projected GDP Reductions: By 2070, high greenhouse gas emissions could lead to a 17% decrease in the Asia-Pacific (APAC) region’s GDP, with the potential to escalate to 41% by 2100.
- Country-Specific Impacts: Notable declines are expected by 2070 with India seeing a 24.7% decrease, Bangladesh 30.5%, Vietnam 30.2%, and Indonesia 26.8%.
Human and Environmental Consequences
- Coastal Flooding Risks: Up to 300 million people could face coastal flooding by 2070, with projected annual damages possibly reaching USD 3 trillion.
- Decrease in Labor Productivity: The region could suffer a 4.9% loss in GDP from reduced labor productivity, with India facing a steeper loss of 11.6% due to increased cooling requirements.
- Temperature-Related Economic Decline: Regional GDP could drop by 3.3%, with India experiencing a sharper decrease of 5.1%.
Flooding and Environmental Degradation
- River Flooding Damages: By 2070, annual river flooding could cause damages worth USD 1.3 trillion across APAC, affecting over 110 million people.
- India’s Specific Losses: Residential damages could exceed USD 400 billion, with commercial damages surpassing USD 700 billion.
- Increased Weather Intensity: More frequent tropical storms and heavier rainfall could lead to exacerbated floods and landslides, especially in areas like the India-China border.
- Forest Productivity Loss: The APAC region might see a decrease in forest productivity by 10-30% by 2070, with India and Vietnam facing losses over 25%.
Policy and Climate Goals
- Net-Zero Emission Targets: 36 out of 44 Asian economies have set targets for reaching net-zero emissions, but only four have legal backing.
- Comparative Lag in Targets: India and China have set their net-zero goals for 2070 and 2060 respectively, trailing behind OECD economies, many of which aim for 2050.
Financial Strategies for Climate Adaptation
- Need for Increased Funding: The region requires an annual investment of USD 102–431 billion for climate adaptation, a steep increase from the USD 34 billion recorded between 2021 and 2022.
- Private Investment and Policy Enhancement: There’s a critical need for greater private investment and stronger policies to attract private climate finance.
- Emphasis on Renewable Energy and Carbon Markets: The report highlights significant opportunities to use renewable energy and carbon markets as cost-effective strategies for climate action.
About Asian Development Bank (ADB):
- The Asian Development Bank (ADB) is a regional development bank established on 19 December 1966 to promote social and economic development in Asia.
- It is headquartered in the city of Mandaluyong, Metro Manila, Philippines.
- The ADB was modelled closely on the World Bank and an official United Nations Observer.
- Japan holds the largest proportion of shares in ADB followed by the USA, and it has a weighted voting system where votes are distributed in proportion with members’ capital subscriptions (just like the World Bank).
- The bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP, formerly the Economic Commission for Asia and the Far East or ECAFE) and non-regional developed countries.
- ADB defines itself as a social development organization that is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
- ADB aids in reducing poverty through investments in the form of loans, grants and information sharing (in infrastructure, health care services, financial and public administration systems), helping nations prepare for the impact of climate change or better manage their natural resources, as well as other areas.
-Source: The Hindu
