Accelerating Impact Investments for Climate and Nature in Asia 2025

of the world’s coal generation is situated in Asia.82%1.1 Balancing high emissions and extreme climate vulnerability Asia-Pacific accounts for the largest share of global CO2 emissions FIGURE 1 Percentage of the world’s CO₂ emissions 51%Asia-PacificEurasia 0-10% 10-20% 20%+Europe 16% North America South AmericaAfricaMiddle East11% 6% 11% 5% 4% 2019Asia’s share of annual global emissions 1990 22% 44% 2023 51%3% Asia stands as the world’s largest contributor to anthropogenic carbon emissions, accounting for approximately 51% of global emissions annually.2 This region’s share has grown significantly over the past few decades, rising from 22% in 1990 to 44% in 2019, reflecting a rapidly increasing emission rate that is unmatched by any other part of the world.3 It is home to 82% of the world’s coal generation,4 one of the most harmful sources of energy for the climate. Consequently, addressing Asia’s carbon footprint is critical to achieving global sustainability and climate mitigation goals.5 At the same time, Asia is highly vulnerable to the impacts of climate change. With a population of 4.68 billion people, many of whom live in coastal or low-lying areas, the region faces significant risks from rising sea levels, extreme weather events and other climate-related challenges.6 The economic repercussions are also severe. For example, in Viet Nam, approximately 80% of the country’s gross domestic product (GDP) is generated from coastal lowlands, which are highly susceptible to flooding and other climate impacts.7 Without effective adaptation measures, it is projected that 6-12 million people could be displaced by 2070-2100 due to the effects of climate change in the region.8 Beyond the direct environmental risks, Asia’s natural capital – an essential source of wealth for many communities – is increasingly under threat. Around 30% of the wealth in the Asia-Pacific region is derived from natural resources, with many low-income communities dependent on natural ecosystems and tourism for their livelihoods.9,10 Despite this, climate change and the degradation of ecosystems are undermining these resources. South-East Asia, for example, has lost approximately half of its mangrove forests over the past five decades, endangering vital ecosystem services such as fisheries, coastline protection and carbon sequestration.11,12 Countries like Indonesia and Malaysia have seen particularly high rates of mangrove loss,13 while Indonesia is also facing an expected decline of 48% of its forest cover by 2050.14 Additionally, 70% of coral reefs in the Philippines are at risk of degradation, further exacerbating the region’s vulnerability.15 These trends highlight the urgent need for targeted climate action and sustainable development strategies to mitigate the impacts of climate change in Asia, both for the region’s people and its vital ecosystems. Accelerating Impact Investments for Climate and Nature in Asia 6Source: World Economic Forum. (2023). Accelerating Asia’s Advantage: A Guide to Corporate Climate Action; Asia Development Bank. (2023). Asia in the global transition to new zero: Asian development outlook 2023 thematic report.