Most countries in Asia-Pacific require sizeable financing to support climate change adaptation and mitigation, says the United Nations Economic and Social Commission for Asia and the Pacific (Escap), urging domestic collaborations between private financial institutions and project developers to support such needs.
The Accelerating Climate Action in Asia and the Pacific report by Escap indicates that most Asian countries are insufficiently prepared to face extreme weather events and natural disasters, which are exacerbating in degrees and frequency due to climate change.
Escap's rudimentary estimate suggests the annual average financial requirements to meet nationally determined contributions (NDCs) among selected developing countries in the region is around US$362 billion a year, comprising $258 billion for mitigation and $104 billion for adaptation.
In 2020, financing to the region's developing countries through international public sources increased to $38 billion from $24 billion in 2016, still substantially lower than the estimate of annual requirements based on NDCs.
"Nowhere is the global climate emergency more immediate than in Asia and the Pacific," noted Armida Salsiah Alisjahbana, under-secretary-general and executive secretary of Escap.
"Measures to put the economies of Asia and the Pacific on a low-carbon pathway, and adapt and become more resilient to the impacts of climate change, must be front and centre of the region's post-pandemic recovery," she added.
According to Escap, over the past 60 years, temperatures in Asia-Pacific have risen faster than the global average.
In 2020, the region emitted 31.6 gigatonnes of CO2 equivalent, with the energy sector being the major emitter, followed by the manufacturing, construction and transportation sectors.
As keys to scale up climate finance, Escap proposed ensuring coherent national financing policies across different sectors of the economy to develop environmental standards, incentivise energy transition and encourage the adoption of green technologies.
"A greater level of convergence is needed between countries' private and financial sector applications of climate standards, while opportunities for regional harmonisation and the cross-listing of both debt and equity instruments should be explored," the report noted.
Moreover, domestic partnerships between private financial institutions and project developers must be encouraged in the pre-investment phase to jointly develop investment-ready projects supporting the energy transition.
At a meeting in Bangkok last week, governments from across Asia-Pacific adopted 10 UN resolutions, reaffirming commitments to take urgent action in regards to climate change and sustainability.
Among others, the resolutions underscored commitments to promoting digital cooperation and inclusion, promoting disability-inclusive development, along with sustainable urban development.
"The global climate fight will be won or lost in this crucial decade; in this context, the resolution demonstrates the commitment by countries in the region to take faster and bolder climate action to ensure that their climate goals are met," Mrs Alisjahbana said.