"From Risk to Resilience Helping People and Firms Adapt in South Asia", 3 June 2025

The World Bank’s 2025 report, From Risk to Resilience: Helping People and Firms Adapt in South Asia, provides a comprehensive analysis of climate adaptation challenges and strategies in the region. South Asia is identified as “the most climate-vulnerable region among emerging market and developing economies.” By 2030, 1.8 billion people (89% of the population) are projected to be exposed to extreme heat, while 462 million (22%) may face severe flooding. “Awareness of climate risks is high; more than three-quarters of households and firms expect a weather shock in the next 10 years.” Climate adaptation is “widespread, with 63 percent of firms and 80 percent of households having taken action.” Yet, most adaptations are “basic, low-cost solutions rather than leveraging advanced technologies and public infrastructure.”

The report finds that “market imperfections and income constraints limit access to information, finance, and technologies needed for more effective adaptation.” If these obstacles were removed, “private sector adaptation could offset about one-third of the potential damage from rising global temperatures on South Asian economies.” The authors call for a “comprehensive policy package” that includes climate-specific measures like improved weather information, resilient technologies, and investments in protective infrastructure, as well as broader developmental policies with “resilience co-benefits.”

The report also highlights “disproportionate exposure and vulnerability” among poor and agricultural households, as well as significant risks and damages for firms. “Targeted public investments in physical and social infrastructure—such as access roads, drainage systems and primary health facilities—and adaptive social protection systems can complement market-based measures to protect the most vulnerable.”