South Asia is experiencing a significant increase in extreme weather events, with nearly 90% of its population expected to face intense heat and over 20% at risk of severe flooding by 2030. A World Bank report emphasizes the need for private sector-led adaptation efforts due to strained public budgets.
The report, titled "From Risk to Resilience: Helping People and Firms Adapt in South Asia," reveals that more than 60% of households and firms have encountered extreme weather in the past five years, with over 75% anticipating similar challenges in the next decade. While many are taking steps to adapt, most measures remain basic, such as raising house foundations or installing fans.
Martin Raiser, World Bank Vice President for South Asia, stated: “The urgency is growing. People and firms are already adapting, but they are doing so with limited tools and few resources.” He emphasized the need for governments to eliminate barriers hindering effective adaptation by addressing land and labor market distortions and enhancing access to finance.
Market barriers and income constraints are identified as major obstacles to stronger adaptation efforts. Households with better education or formal financial access are more likely to adopt advanced strategies. Similarly, well-managed firms facing fewer regulatory hurdles tend to be more adaptive.
Franziska Ohnsorge, World Bank Chief Economist for South Asia, highlighted: “Private sector adaptation could reduce one third of the region’s projected climate damage, but this requires governments to strengthen enabling environments.”
The report advocates for both targeted adaptation initiatives and broader development measures that enhance climate resilience. Governments can play a pivotal role by expanding access to localized climate information, promoting weather-indexed insurance, supporting resilient technologies like energy-efficient cooling systems, and investing in infrastructure that ensures safety and connectivity.
Examples from Bangladesh's early warning systems and cyclone shelters demonstrate successful reduction of fatalities during storms. Indian cities like Ahmedabad have implemented heat action plans to protect urban populations from rising temperatures.
The report suggests policy actions based on three principles: implementing comprehensive adaptation measures; prioritizing solutions that support development alongside climate resilience; aligning strategies with long-term development goals.
Governments across South Asia can foster resilience by creating conditions that empower households and firms to adapt effectively.