Tapping rivers, lakes for climate action in S-E Asia could avert 25% GDP loss by 2050: Report

Straits Times

5 hours ago

In climate action, adaptation has long been the overlooked sibling of mitigation, or emissions-cutting efforts. PHOTO: AFP
Tapping rivers, lakes for climate action in S-E Asia could avert 25% GDP loss by 2050: Report
SINGAPORE – The impacts of climate change are expected to claim up to 25 per cent of South-east Asia's GDP by 2050, but such losses can be avoided if countries turn to their snaking rivers and majestic lakes for solutions, says a new report.
It is high time to ramp up measures to shield against powerful typhoons, rising seas and heatwaves, and water is well-suited to be the starting point for adaptation efforts, said the report produced by the World Economic Forum and the Singapore International Foundation .
About 90 per cent of all extreme weather events are related to water, which also exacerbates other climate hazards. Larger amounts of water vapour in the atmosphere act as fuel for severe storms, while heatwaves and wildfires are related to drought.
South-east Asia needs to prepare quickly for the impacts of climate change, yet these adaptation efforts remain under-prioritised and under-supported, said the report released on June 23.
A major hurdle is the difficulty in grasping adaptation, as it is often perceived as broad and all-encompassing, noted the paper.
Climate adaptation involves protecting people from the impacts of climate change, such as building sea walls to guard against rising sea levels and cooling centres during heatwaves.
'Because it is difficult to measure, the returns on investment in climate adaptation are challenging to define,' said the report.
It aims to shift the perception of adaptation by highlighting the importance of the move and quantifying the investment needed.
For example , an investment of about US$13 billion (S$16 billion) is needed by 2030 to fortify South-east Asia's adaptation and resilience to various types of flooding beyond existing methods such as irrigation systems and controlling stormwater flow.
'Businesses and investors have a direct interest in backing (adaptation) strategies. It reduces their exposure to risk and ensures business continuity when crisis strikes,' said the report.
In climate action, adaptation has long been the overlooked sibling of mitigation, or emissions-cutting efforts.
But it has started to gain traction in recent months amid worsening climate impacts. In 2024, global temperatures exceeded 1.5 deg C above pre-industrial times for the first time.
Singapore is among the countries preparing a national adaptation plan to guard against climate impacts like sea-level rise and extreme heat.
To help policymakers design water-centric adaptation measures, the report outlined a framework focusing on four key areas: reducing damage brought by floods, enhancing alternative sources of water, incorporating technologies and artificial intelligence (AI), and developing financial tools to raise money for adaptation projects.
The framework focused on case studies that the region can emulate, such as Belize's five-year project to protect its coasts and reduce pollution and wastewater discharge into the ocean, while protecting the nation's coral reefs.
The Central American project, announced in early 2025, will include mangrove planting and harnessing of wetlands to help clean wastewater.
While US $32.23 million has been raised – which includes funding from the World Bank's International Development Association – other forms of innovative financing such as carbon credits and blue bonds are expected to be unlocked. Blue bonds are a form of loans given out specifically to protect the ocean, and green bonds are similar loans for environmental projects.
Between 2020 and 2023, water-related green bonds grew 30 percentage points faster than the overall green bond market.
The Belize project could inspire similar ones in the coastal cities of the Philippines, Indonesia and Vietnam, added the report.
On the use of AI, the report highlighted an 11-year-old project in the region called Servir-Mekong, which provides satellite data to help countries along the Mekong River predict and prepare for floods and droughts.
The AI system has helped more than 60,000 households in Vietnam's Ninh Thuan province plan and optimise their water usage in the fields. It is the first large-scale, AI-powered water management initiative in South-east Asia.
The report comes on the heels of a few other climate adaptation-focused papers published in 2025, which quantified the global investment potential of protecting people from climate change.
A May report by global management consultancy BCG and Singapore's investment firm Temasek shows that expenditure for climate adaptation and resilience is projected to rise to between US$500 billion and US$1.3 trillion a year by 2030.
They said hazard warning systems, flood pumps and barriers, as well as emergency medical services were among solutions identified as having the most investment potential.
An earlier report by Singapore sovereign wealth fund GIC found that adaptation strategies, such as flood protection and cooling systems, could by 2050 make up a sizeable investment opportunity worth US$9 trillion.
Shabana Begum is a correspondent, with a focus on environment and science, at The Straits Times.
Find out more about climate change and how it could affect you on the ST microsite here.