'Very little capital' going into climate adaptation in emerging Asia: study

(Eco Business, 17 Jan 2023) Only about 0.2 per cent of available capital is going into the adaptation economy in the region. Underinvestment in climate-vulnerable countries could lead to a cost of US$377 billion in damage and lost growth by 2030, a new study finds.

Only 0.4 per cent of all capital available to financiers is going into adaptation projects in climate-vulnerable countries, and in Asia, the number is even lower, according to a new study

The study, published by Standard Chartered Bank in November last year, finds that only 0.19 per cent of available capital is going into the adaptation economy – projects such as coastal barrier protection, drought resistant crops and mangrove restoration – in Asia. This is as billions are being pumped into climate mitigation measures such as the rolling out of renewables.

While almost three in five financial firms say they plan to increase investments in climate adaptation measures over the next year, executives report numerous obstacles. These include a lack of understanding in where capital should be allocated and the likely impact of climate change over the next decade.

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Eco Business, 17 Jan 2023: 'Very little capital' going into climate adaptation in emerging Asia: study