Climate Change Worse than the Financial Crisis

The economic costs of climate change in Southeast Asia are forecast to be much higher than the global financial crisis. Unless global warming is addressed, Indonesia, Philippines, Thailand, and Viet Nam could experience combined damage equivalent to more than 6% of their gross domestic products every year by the end of this century, according to a recent Asian Development Bank (ADB) study.

“Climate change seriously threatens Southeast Asia’s families, food supplies, and financial prosperity, and regrettably the worst is yet to come,” says Ursula Schäefer-Preuss, vice president for knowledge management and sustainable development at ADB. She notes, however, that “with the world mired in the current financial crisis, climate change risks are being pushed down the policy agenda.”

The report, entitled The Economics of Climate Change in Southeast Asia: A Regional Review, used reviews of previous studies, impact assessment models and extensive consultations with national and regional experts to examine climate change challenges facing Southeast Asian nations.

The study advocates greater regional and global cooperation in addressing the root causes of climate change. It cites initiatives in the areas of water basin management, shared marine ecosystems, extreme weather events, and the containment of infectious diseases.

The study advises Southeast Asian nations to include green stimulus programs in their stimulus packages, as these can create jobs and lower emissions at the same time. •