BENGALURU, India (AP) Climate change is severely impacting Asia's water and power systems, endangering millions of lives and compelling countries to invest billions in essential services. A report by the Asian Development Bank (ADB) highlights that Asian nations will need approximately $4 trillion for water and sanitation between 2025 and 2040, which breaks down to about $250 billion annually. Despite the rising risks of water-related disasters, current spending remains inadequate.
According to recent research by the Hong Kong-based Asia Investor Group on Climate Change and the New York-based MSCI Institute, governments face increasing pressure to safeguard power systems that are critical for daily life. The research projects that by 2050, extreme weather events could result in an annual loss of about $8.4 billion for power companies in the Asia-Pacific region, a significant increase from current figures.
This year, Asia has experienced devastating weather patterns, including late-arriving storms and severe floods. In Quy Nhon, a coastal city in central Vietnam, Typhoon Kalmaegi caused power outages as heavy rains and strong winds snapped power lines. Flooding in the area left streets submerged and residents stranded. One affected individual, Hai Duong, 29, expressed her distress about her home being underwater as she rushed to a mall still functioning to charge her phone.
The ADB report indicates that while approximately 2.7 billion people in the Asia-Pacific region have access to water for basic needs, over 4 billion remain vulnerable to unsafe water and environmental degradation. Major improvements in rural water access since 2013 have contributed to this progress, with 800 million more people gaining piped water services, largely influenced by initiatives in India.
However, the region faces a "triple threat" consisting of environmental pressures, insufficient investment, and climate change. Vivek Raman, a principal urban development specialist at the ADB, emphasized the disparity in water resource management across the region. The report notes that water ecosystems are deteriorating or stagnant in 30 of the 50 Asian countries studied due to unchecked development, pollution, and land conversion. Asia accounts for 41% of global flooding, with coastal megacities and Pacific islands increasingly threatened by storm surges and rising sea levels. From 2013 to 2023, the region experienced 244 major floods, 104 droughts, and 101 severe storms, undermining developmental gains and inflicting widespread damage.
Currently, governments fund only 40% of the estimated $4 trillion needed for water and sanitation investments from 2025 to 2040, resulting in a substantial annual shortfall of over $150 billion. Amit Prothi, director general of New Delhi-based Coalition for Disaster Resilient Infrastructure, highlighted the opportunity for innovative building practices over the next three decades as Asia embarks on significant infrastructure development.
On another front, Asia's power utilities are currently losing $6.3 billion annually due to climate change, a figure projected to rise above $8.4 billion by 2050 unless climate adaptation measures are strengthened. As Asia represents 60% of the world's power generation capacity, the report warns that climate changes pose significant threats to energy security and economic growth in a region where over 4 billion people need reliable electricity.
Anjali Viswamohanan, director of policy at the Asia Investor Group on Climate Change, stated that many companies have only begun assessing climate change impacts. A study of 2,422 power plants across Asia found extreme heat to be the most costly hazard, accounting for over half of the projected losses by 2050. This inefficiency related to heat waves threatens key utilities in countries like India and Malaysia.
Moreover, disruptions to water supply in Asia's major river basins pose a significant challenge for coal and gas plants as well as hydropower dams. Utilities like Malaysia’s Tenaga Nasional are particularly vulnerable due to their coastal power plants, which are at risk from flooding. Despite the escalating challenges, the report indicates that many utilities lack comprehensive plans for adapting to climate impacts. While some power companies are beginning to evaluate their vulnerabilities, detailed funding strategies remain limited.
According to Jakob Steiner, a geoscientist from the University of Graz, the financing gaps in the power sector might be easier to address than those in water and sanitation due to greater industry interest in energy projects. However, he cautioned that some nations might turn to regional financiers lacking stringent environmental safeguards, which could compromise long-term sustainability.
