South Asia, a region with some of the world's fastest-growing countries and a vast, dynamic human capital base, is achieving notable economic progress. However, the region is vulnerable to climate change impacts—including floods, droughts, cyclones, and extreme heatwaves—that pose a significant risk to its growth trajectory, infrastructure, and peoples’ livelihoods. Without urgent and proactive investments in adaptation and resilience (A&R), these climate risks could reverse decades of hard-won economic and development gains.
Yet, amid these challenges, South Asia is leveraging its unique advantages to emerge as a leader in delivering climate solutions. From rapidly expanding clean energy markets to innovative adaptation strategies, the region has positioned itself at the forefront of global climate action.
Turning vulnerability into resilience
According to the World Bank’s South Asia Climate Change Roadmap, the region faces acute climate risks driven by dense coastal populations, heavy dependence on monsoon-fed agriculture, and rapid urbanization. These vulnerabilities require integrated, economy-wide strategies to strengthen resilience and mitigate impacts.
Rapidly melting glaciers in the Himalayas jeopardize water, food, and energy security across multiple countries in the region. At the same time, intense and recurring heatwaves have become a hallmark of the region’s climate challenges, with India and Pakistan consistently experiencing record-breaking temperatures. Bangladesh, with its low-lying delta regions, faces existential threats from rising sea levels.
These interconnected challenges have catalyzed innovative approaches to climate resilience. Bangladesh, for example, has become a global pioneer in community-based adaptation by developing sophisticated early warning systems and climate-resilient agriculture practices. The country's cyclone preparedness program, which combines traditional knowledge with modern technology, has dramatically reduced casualties: from 500,000 in the 1970 Bhola cyclone to less than 5,000 for recent events.
India's adaptation efforts are equally significant. After a devastating 2010 heatwave that claimed over 1,300 lives in Ahmedabad, the city developed a comprehensive Heat Action Plan by investing in heat warning systems, public awareness campaigns, healthcare training, and innovative cooling solutions, Ahmedabad has transformed crisis into opportunity, preventing over 2,300 deaths to date.
Nepal provides another noteworthy example in the forestry sector. Its community-managed forests model has evolved into a comprehensive approach to manage ecosystems in the mountains and low-lands by integrating traditional knowledge with sustainable forest management. As a result, not only has forest cover increased, but it has also fostered sustainable livelihoods and strengthened community resilience in the face of climate shocks.
Scaling up Financing
South Asia is emerging as a key market for climate finance, driven by growing recognition of the need to integrate climate resilience into policies and long-term planning. The devastating 2022 Pakistan floods, which caused an estimated $15.2 billion in economic losses and highlighted rehabilitation and resilience needs of $16.3 billion, exemplify the region's economic vulnerabilities to climate change. Acknowledging these risks, Pakistan introduced its first National Climate Finance Strategy (NCFS) at COP29, a framework to mobilize resources for adaptation and mitigation in key sectors like agriculture, energy, and urban infrastructure. Similarly, to address its climate financing needs, Bangladesh partnered with multilateral banks and international partners to create the Bangladesh Climate and Development Platform in 2023 to help develop climate projects coupled with the right financing strategies.
There is also a growing interest in financing resilience among the private sector. Last year, the Asia Society Policy Institute (ASPI) and the World Bank convened a roundtable meeting with private financiers and other stakeholders, uncovering a rapidly evolving policy landscape that is fostering investments rooted in sustainability and resilience. As highlighted in ASPI’s Building Sustainable Future: Advancing Climate Resilience in South Asia report, participants emphasized the need to elucidate the financial returns of resilient investments and strategically leverage tools like blended finance, risk-sharing mechanisms, and regulatory incentives to de-risk projects and attract private capital. This momentum aligns with South Asia’s growing recognition of climate finance as a critical enabler of resilience.
Leading global climate cooperation
South Asia's approach to climate action offers a powerful model for international cooperation at a time when global climate negotiations face increasing headwinds. The region’s clarion call for action at COP29 underscores its recognition for systemic change. India stands out as an important example of how emerging economies can drive positive climate action while balancing development needs. The Coalition for Disaster-Resilient Infrastructure (CDRI), initiated by India and now comprising over 30 countries, exemplifies how South Asian innovation can catalyze global cooperation. By focusing on practical solutions and technology transfer, the CDRI has created a new paradigm for climate collaboration that transcends traditional North-South divides.
Bangladesh's adaptation experiences are also playing a growing role in informing global climate resilience efforts. Its community-based adaptation models are being replicated across Africa and Southeast Asia, while its leadership in the Climate Vulnerable Forum has amplified the voices of at-risk nations in international climate discussions. This knowledge sharing between vulnerable regions represents a new form of South-South cooperation that complements traditional climate diplomacy.
The next decade will be crucial in determining the success of efforts to address climate change and South Asia is well-positioned to play a growing role in this transformation. By leveraging its ingenuity and tapping into its abundant resources, South Asia is turning its vulnerabilities into transformative climate leadership to secure a sustainable future for its people and the world.
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