A new study has identified more than 250 priority climate adaptation and resilience solutions for Asia, grounded in the region's unique climate risks, hazards, and priorities, and between 2021 and 2025, climate adaptation and disaster resilience financing received over $100bn.
The 171-page Asia-focused report “CLIMATE ADAPTATION AND RESILIENCE IN ASIA: Pricing Risk, Sizing Opportunities, Financing Solutions”, produced by the Centre for Impact Investing and Practices (CIIP) and collaborators reveals that the 165 Asian funders, managing over $1tn in funds, find climate adaptation and resilience as the top impact theme by activity and interest.
The report examines the region’s climate risks, financing gaps, and barriers constraining investment in adaptation and resilience solutions. This includes persistent data gaps, limited visibility of investable opportunities and unclear financing pathways.
The Climate Adaptation and Resilience (CA&R) solutions for Asia span three tiers of commercial viability. These include 94 low or no commercial viability solutions but which are foundational in terms of building regional resilience, 93 emerging opportunities that are promising but need catalytic capital to scale, and 65 commercially viable solutions that have proven track record across markets.
Together, they offer clear entry points across the spectrum of capital to support solutions at different stages of maturity — from early-stage innovation and ecosystem development to scaling proven technologies and infrastructure.
CIIP CEO Ms Dawn Chan said, “Climate adaptation and resilience (CA&R) financing in Asia remains constrained by limited data, fragmented approaches, and uncertainty around where capital can be most effective. We hope this report helps to provide greater clarity on the opportunities and roles different stakeholders can play in advancing solutions across the region. As climate risks intensify, stronger coordination between public, private, and philanthropic capital will be essential to accelerate action.”
As a region, Asia is warming at twice the global average. Since 2000, 3.7bn people in Asia have been affected by climate-related disasters – more than triple that in the rest of the world. These risks are already translating into significant economic and social costs.
By 2030, Asia will account for around 75% of the global CA&R financing gap, and Asian companies are projected to bear around $336bn in annual climate costs. Despite this, annual CA&R financing flows in Asia remain significantly below current funding needs. More than $200bn is required annually across the region, yet current flows stand at only around $19bn.
Agriculture is among the sectors most significantly affected by climate change. While the sector contributes 9.8% to Southeast Asia’s GDP, the average annual production growth of key staple foods has remained below 1.3% over the past decade. Climate stress could reduce crop yields by as much as 41%, with much of the burden and impact of declining production falling on the region’s 100m smallholder farmers, many of whom live on less than $2 a day.
CGIAR's Hub for Sustainable Finance (ImpactSF) Co-Lead Dr Godefroy Grosjean said, “Impacts of climate risks vary according to crop or livestock, where they are and when the risk is going to be experienced. This determines the necessary strategy required for resilience uplift. ImpactSF uses CGIAR-produced scientific data along with AI-based approaches to support investment processes in risk identification and mitigation and impact reporting for investees. This is extremely critical because if risks are ignored, they will eventually impact the financial bottom line of businesses in the agriculture and food sector."
Several structural barriers constrain capital deployment into CA&R. These include underdeveloped policy and regulatory environments; limited access to data on local climate, risk, and costs; and mismatches between solutions and the funding available.