Experts warn that the region’s accelerated growth offers a chance for more resilient reconstruction, but the investment deficit remains large
Climate change is straining the city’s water and energy systems and putting millions at risk, according to two reports. The Asian Development Bank estimates that countries in the region will need to invest US$4 trillion in water and sanitation between 2025 and 2040, but governments currently cover only 40% of this amount. Meanwhile, disasters such as floods, droughts and storms intensify, degrading ecosystems and threatening basic supplies.
The pressure also affects the energy sector. Research by the Asia Investor Group on Climate Change and the MSCI Institute shows that extreme heat, floods and lack of water already cost Asian electricity companies US$6.3 billion annually, a figure that could exceed US$8.4 billion by 2050. The region, responsible for 60% of global generation capacity, remains highly dependent on coal, making its infrastructure even more vulnerable.
The study reveals that most companies are in the early stages of climate adaptation and lack detailed plans. Power plants are among the most exposed to heat waves and floods. The reduction in the flow of large rivers and rising sea levels add new risks, especially for coastal cities.
Experts warn that Asia’s accelerated growth offers a chance for more resilient reconstruction, but the investment deficit remains large. Although the energy sector has an easier time attracting capital, this may be accompanied by lower environmental requirements.
*With information from Estadão Conteúdo
