A critical report released at the Philanthropy Asia Summit on May 18 has revealed a staggering financing gap for climate adaptation and resilience across Asia. The region requires over $200 billion annually to combat the devastating effects of climate change, yet current funding flows barely reach $19 billion each year. This significant shortfall could account for more than 75% of the global financing gap by 2030, underscoring an urgent need for increased investment to protect vulnerable populations and economies.

What Happened?

The report, titled “Climate Adaptation and Resilience in Asia: Pricing Risk, Sizing Opportunities, Financing Solutions,” was a collaborative effort by the Centre for Impact Investing and Practices (CIIP) in partnership with Temasek, Invesco, and ImpactSF (CGIAR Hub for Sustainable Finance). Launched in Singapore, the study painted a grim picture of Asia's vulnerability to climate change, which is warming at nearly twice the global average. This accelerated warming exacerbates extreme weather events, posing significant threats to livelihoods and infrastructure across the continent.

Researchers meticulously identified over 250 priority climate adaptation and resilience (CA&R) solutions for the region. This identification process was based on an extensive analysis of more than $100 billion in climate financing flows between 2021 and 2025. Despite these identified solutions, the report sternly warns that financing for adaptation measures remains woefully inadequate compared to the escalating needs. The study also categorised these solutions into three distinct tiers based on their commercial viability, ranging from critical resilience-building projects with low commercial viability to commercially proven initiatives with established market track records.

The report highlighted the immense human and economic toll already suffered. Since 2000, 3.7 billion people in Asia have been affected by climate-related disasters. This figure is more than three times the number affected in the rest of the world combined, demonstrating the disproportionate impact on the region. Furthermore, Asian companies are projected to incur approximately $336 billion in annual climate-related costs by 2030, a clear indicator of the severe economic repercussions awaiting if adaptation efforts are not drastically scaled up.

Key Highlights

Asia needs over $200 billion annually for climate adaptation and resilience, but receives only about $19 billion.
The region’s climate adaptation financing gap could exceed 75% of the global shortfall by 2030.
The report was launched by the Centre for Impact Investing and Practices with partners at the Philanthropy Asia Summit on May 18.
Asia is warming at nearly twice the global average, leading to more frequent and intense climate-related disasters.
Since 2000, 3.7 billion people in Asia have been affected by climate-related disasters, three times more than the rest of the world combined.
Asian companies face projected annual climate-related costs of $336 billion by 2030.
The study identified over 250 climate adaptation solutions and categorised them by commercial viability.

Why Does This Matter?

This news is profoundly important for common people across Asia because climate change directly impacts daily life, health, and economic stability. From extreme heatwaves and devastating floods to prolonged droughts, these events destroy homes, disrupt food supplies, and threaten livelihoods. For instance, the agriculture sector, particularly in Southeast Asia, is identified as one of the most vulnerable, meaning that families relying on farming face increased insecurity and potential food shortages. Without sufficient adaptation measures, these challenges will only intensify, making it harder for communities to recover and thrive.

Moreover, the projected $336 billion in annual climate-related costs for Asian companies by 2030 will not only affect businesses but also trickle down to consumers through higher prices, job losses, and reduced economic opportunities. The lack of adequate funding for adaptation means that essential infrastructure like roads, schools, and hospitals remain at risk, and critical public services could be compromised. Investing in climate adaptation now is not just an environmental issue; it is an investment in the health, safety, and economic future of every individual and family living in Asia, ensuring they can better withstand the inevitable impacts of a changing climate.