Adaptation through Water 2025

Cumulative flood loss projections in Thailand, by 2030 ($ billion) Calculated from the baseline average annual loss from floods multiplied by a 'climate factor' that accounts for precipitation pattern shifts in both frequency & severityCumulative potential flood loss projections,1 2025-2030 ($ billion)1 Calculated by multiplying the cumulative potential flood loss projections by 2030 with an adaptation solution efficacy ratioTotal loss protection potential from flood adaptation solutions ($ billion)2 Calculated by dividing the loss protection potential from flood adaptation solutions by the adaptation solution benefit/cost ratio Total investment required for flood solutions ($ billion)3Investment required for flood solutions, by 2030 ($ billion)$ 29 billion2$ 23 billion$ 2.3 billionCalculating the investment required by 2030 for flood solutions: Thailand example FIGURE 5 Note: 1. Based on the Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report’s shared socioeconomic pathway (SSP) 5-8.5 scenario, which represents a projected “fossil-fuelled development” pathway where greenhouse gas emission concentrations rise significantly throughout the 21st century. 2. Adjusted for inflation, applying inflation rate of 1.32% (10-year average from 2016-2025 based on IMF data). Sources: IPCC, UNESCAP , World Bank, IMF, BCG analysis.11 The second challenge – too little water – arises where demand exceeds supply. It often results from intense drought and is exacerbated by inadequate infrastructure. Climate change intensifies the severity and duration of drought, particularly in arid regions. Global warming and irregular precipitation have increasingly subjected Southeast Asia to drought. Thailand, the Mekong Delta and Central Java are the areas most severely affected. Thailand suffers drought more frequently than any other country in the world. The country’s central and north-eastern areas are most vulnerable. Most of its agriculture industry – which employs around one-third of the country’s workforce – is at risk (see Figure 6). 2.3 Too little Thailand suffers the most frequent drought in the world, with one-third of its workforce at risk. Adaptation through Water: Mobilizing the Private Sector for Climate Adaptation in Southeast Asia 11