Climate change poses risks to water and power systems across Asia, according to recent warnings from experts.

BENGALURU, India — As climate change intensifies, countries across Asia are grappling with significant threats to their water and energy infrastructures, a situation that is compromising the safety and well-being of millions. Recent studies highlight an urgent need for investments amounting to trillion in water and sanitation services over the next 15 years, roughly translating to an annual requirement of 0 billion, according to a report by the Asian Development Bank.

Water-related disasters are becoming increasingly common, with governments struggling to allocate sufficient resources to mitigate these challenges. A separate study conducted by the Asia Investor Group on Climate Change and the MSCI Institute projects that, by 2050, extreme weather events could inflict annual damages and lost revenues of approximately .4 billion on publicly traded power companies in the Asia-Pacific region—an increase of a third from current figures.

The physical impacts of climate change are already evident, as displayed by recent weather events throughout Asia. For instance, Quy Nhon in central Vietnam recently endured Typhoon Kalmaegi, which caused power outages and severe flooding that enabled residents to see only rooftops above water. Such situations exemplify the immediate repercussions of climate instability.

At present, approximately 2.7 billion people, or nearly 60% of the Asia-Pacific population, have access to adequate water services, but over 4 billion remain vulnerable to unsafe water supplies and dangerous environmental conditions. Major improvements since 2013 in rural water access have been noted, particularly due to significant contributions from India. However, a trifecta of environmental degradation, insufficient investment, and ongoing climate change poses significant challenges moving forward.

The report details alarming findings regarding Asia’s water ecosystems, revealing degradation in 30 of 50 study countries, primarily driven by unchecked development and pollution. With Asia contributing to 41% of global flooding, coastal cities and Pacific island nations are increasingly endangered by storm surges and rising sea levels. A staggering 244 major floods and numerous droughts and storms were recorded from 2013 to 2023, severely undermining development initiatives.

Current government funding meets only about 40% of the critical trillion investment needs, highlighting a yearly shortfall exceeding 0 billion. The urgency for enhanced infrastructure development in Asia is compounded by the region’s reliance on coal for energy, which also puts its economic growth at risk.

The Asia Investor Group on Climate Change emphasizes that extreme weather events currently cost the power sector .3 billion per year, with projections indicating a rise to .4 billion by 2050. Notably, vulnerable facilities are also facing challenges from decreasing river flows essential for power production and from heavy rainfall that disrupts operations, particularly in coastal regions.

Despite the alarming evidence, many power utilities lack comprehensive adaptation strategies for climate impacts. A study reveals that of the 11 major power companies reviewed, only a few have assessed risks in detail or calculated how these threats could affect operational costs.

As the climate crisis accelerates, addressing the financing gaps in both the water and energy sectors remains a pivotal challenge. While energy projects may attract investment more readily, concerns persist regarding compliance with environmental standards. The potential for more lenient regional financing alternatives further complicates the issue, introducing additional risks to sustainability efforts across Asia.

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