South Asia is facing significant risks from climate change, with Bangladesh among the most vulnerable countries in the region. By 2030, it is expected that nearly 90 percent of South Asia’s population will be exposed to extreme heat and almost a quarter could face severe flooding. Rising water and soil salinity in coastal areas are already having serious effects on millions of people in Bangladesh.
A new report titled “From Risk to Resilience: Helping People and Firms Adapt in South Asia” finds that households and businesses have carried much of the burden for adapting to these changes. The report shows that awareness of climate risks is high, with over three-quarters of households and firms expecting a weather-related shock within the next decade. Around 63 percent of firms and 80 percent of households have taken steps to adapt, but most rely on basic solutions instead of advanced technologies or improved public infrastructure.
A survey covering 250 coastal villages in Bangladesh identified climate-resilient infrastructure as a major unmet need. Inadequate disaster-protection systems and limited financial resources were cited by more than half the surveyed households as primary obstacles to effective adaptation. Poorer families, especially those dependent on agriculture, are particularly affected.
Government initiatives such as embankments and cyclone shelters have saved lives and reduced damage from disasters. Case studies from Bangladesh, India, and Pakistan indicate that social assistance programs can be expanded quickly during crises to help those most at risk if they are combined with current information about conditions. However, due to fiscal limitations faced by governments, there is an increasing need for private sector involvement supported by comprehensive policy measures.
“Bangladesh’s resilience is being continually tested by evolving environmental challenges. While adaptation is widespread, with increasing climate risks, more needs to be done,” said Jean Pesme, World Bank Division Director for Bangladesh and Bhutan. “The country’s resilience will depend on scaling up early warning systems, social protection, climate-smart agriculture, and adaptation finance—including innovative risk finance solutions—alongside targeted urban interventions.”
The report recommends improving early warning systems as well as expanding access to credit and insurance products designed for climate risk management. It notes that approximately one-third of potential losses related to climate impacts could be prevented if private investment was better directed toward necessary areas during times of stress. Even when budgets are tight, governments can support this process by improving financial services access, strengthening transport networks and digital connectivity, and ensuring flexible social safety nets.
Adaptation strategies should also include adopting resilient technologies or providing core public goods like roads or health care systems that protect jobs and human capital.
“Bangladesh’s experience offers both lessons and a critical test case for climate adaptation in South Asia,” said Siddharth Sharma, one of the authors of the report. “The country’s people and businesses are already adapting, but the scale and complexity of the climate crisis demand urgent, coordinated action from government and the private sector.”
Bangladesh has demonstrated success through investments in early warning systems and cyclone shelters which have reduced fatalities during storms; this shows how targeted spending coupled with strong institutions can help local communities adapt effectively.
By fostering partnerships among government agencies, businesses, and local communities—and focusing on building strong institutions—Bangladesh can further advance adoption of climate-smart approaches that not only reduce vulnerabilities but also promote sustainable growth. Emphasizing these actions will help empower families and businesses while supporting inclusive economic development.