Climate change can take big toll on Asian economies, inaction could cost more

illuminem summarizes for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: The Asian Development Bank (ADB) warns that climate inaction could reduce Asia-Pacific’s GDP by up to 17% by 2070, impacting coastal infrastructure, labor productivity, and climate-sensitive sectors
• With emissions hitting record highs, the ADB report emphasizes urgent investment to mitigate the worst effects of climate change

🔭 The context: Asia-Pacific, both a climate-vulnerable and high-emission region, contributes over 50% of global GHG emissions, placing it at the heart of the climate crisis
• While annual investments of up to $431 billion are needed for climate adaptation, current funding falls short, with only $34 billion allocated over 2021-2022

🌍 Why it matters for the planet: Climate-induced economic losses could reach $96 trillion by 2070, threatening half of the global labor force in Asia-Pacific
• However, the region’s renewable energy potential, manufacturing base, and workforce offer strong pathways for a net-zero transition, benefiting both the environment and regional economies

⏭️ What's next: Governments in Asia-Pacific must enact climate-focused policies to attract essential private investment and ensure consistent progress toward decarbonization
• The upcoming U.S. presidential election also holds global climate implications, influencing markets and international cooperation

💬 One quote: “The window to stay within the 1.5°C target of the Paris Agreement is rapidly closing” – The ADB, stressing the need for urgent climate action

📈 One stat: Asia-Pacific needs between $102 billion and $431 billion annually for climate adaptation—far above the $34 billion committed in recent years

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