Despite Asia being the most impacted region by extreme weather and climate threats, businesses face challenges in navigating climate adaptation journey.
26.5% of Asia’s GDP may be at risk if no action on climate change is taken by 20501, and can cause far-reaching impacts on various sectors, including critical infrastructure, agriculture output, public health and the economy.
However, developing East and South Asia and the Pacific will need up to US$644 billion of adaptation investment annually to meet the regions’ needs from 2021 to 2030, and there is still a more than 90% gap in global adaptation finance2.
While the private sector has a crucial role to play and needs to make a stronger commitment to address climate adaptation with investments in climate resilience, they often encounter the following challenges:
- Lack of awareness of climate-related risks and clear ownership of climate adaptation responsibilities among public and private stakeholders.
- Data and modeling that does not fully inform and support quantification and pricing of climate-related risks.
- Inability to articulate their business case to obtain financing for climate adaptation initiatives.