Climate Action South Asia: Information Update No. 3 (The Economics of Climate Change in South Asia)

Analyses show that the cost of early action on climate change in South Asia is lower than the cost of damage brought about by climate change impacts. The region will face water shortage and agricultural food production losses, which are vital to achieving poverty reduction and other Millennium Development Goals (MDGs). South Asian countries will gain most by early inclusion of climate adaptation in their development goals. This will reduce their vulnerability and improve their resilience against impacts of climate change.

This ADB study on Regional Economics of Climate Change in South Asia: Adaptation and Impact Assessment examined the economic costs associated with the impacts of climate change, and the cost and benefits of adaptation in Bangladesh, Bhutan, India, the Maldives, Nepal, and Sri Lanka. The study covered the following sectors: agriculture, forest, water, marine and coastal resources (except Bhutan and Nepal), health and energy.