New Delhi [India], June 4: More than 60 per cent of households and firms have experienced extreme weather in the last five years, and over 75 per cent are expected to face it in the next decade, a new report by the World Bank has revealed.
In a new report titled 'From Risk to Resilience: Helping People and Firms Adapt in South Asia,' the World Bank has warned that South Asia is facing a sharp rise in extreme weather. Nearly 90 per cent of the population is expected to be exposed to intense heat by 2030, and more than one in five people is at risk of severe flooding.
It said that much of the adaptation effort needs to come from the private sector, as public budgets are under pressure. A new World Bank report has outlined policy reforms that would help households and firms adapt to increasingly frequent and damaging weather events.
In a press release, the World Bank stated, "Released today, From Risk to Resilience: Helping People and Firms Adapt in South Asia, finds that awareness of climate risk is high. More than 60 per cent of households and firms have experienced extreme weather in the last five years, and more than 75 per cent expect it for the next decade. Many households and businesses are already taking steps to adapt to climate risks."
"Around 80 per cent of households and 63 per cent of firms have taken some measures to adapt. However, most of these measures are basic, such as raising house foundations or installing fans. More advanced options, like using climate-resilient seeds or relocating from high-risk areas, remain less common," it added.
According to the report, market barriers and income constraints are holding back stronger adaptation.
Households with more education or access to formal finance are more likely to adopt advanced strategies. In addition, better-managed companies with fewer regulatory barriers tend to be more adaptive and removing these barriers would allow more effective adaptation by households and firms.
World Bank Chief Economist for South Asia, Franziska Ohnsorge, said, "Private sector adaptation could reduce one third of the region's projected climate damage, but this requires governments to strengthen enabling environments."
"Adaptation is most effective when markets function well and when essential services like transport, water, healthcare, and digital connectivity are widely accessible," Ohnsorge added.
The report called for targeted adaptation efforts and broader development measures that also build climate resilience. It noted that governments have a critical role to play, even with limited fiscal space.
According to the report, the government can expand access to localised climate information, promote weather-indexed insurance, and support the use of resilient technologies such as energy-efficient cooling systems.
World Bank Vice President for South Asia, Martin Raiser, said, "The urgency is growing. People and firms are already adapting, but they are doing so with limited tools and few resources."
"Governments must act quickly to remove the barriers that prevent more effective adaptation. This includes removing distortions in land and labour markets, expanding access to finance and investing in public infrastructure to support people and businesses as they respond to climate risks," he added.
The report noted that cities like Ahmedabad are leading with heat action plans to protect urban populations from rising temperatures. These plans demonstrate how targeted investments and effective institutions can successfully bolster local adaptation.
The report called for policy action guided by three core principles - implementing a comprehensive package of adaptation measures, prioritising solutions that support both development and climate resilience and aligning adaptation strategies with long-term development goals to ensure lasting progress.
In the release, World Bank Chief Economist for South Asia, Franziska Ohnsorge, said, "Private sector adaptation could reduce one third of the region's projected climate damage, but this requires governments to strengthen enabling environments."
"Adaptation is most effective when markets function well and when essential services like transport, water, healthcare, and digital connectivity are widely accessible," she added.
Source: Times of Oman
