By Abbas Nazil
Climate change is increasingly threatening water and power systems across Asia, putting millions at risk and forcing governments to invest billions in safeguarding essential services.
Recent reports from the Asian Development Bank (ADB) and the Asia Investor Group on Climate Change, in collaboration with the MSCI Institute, highlight rising water-related disasters, insufficient investment in infrastructure, and growing vulnerability of power utilities to extreme weather events.
The ADB warns that Asian nations will require $4 trillion for water and sanitation between 2025 and 2040, averaging $250 billion per year, yet current spending meets only 40 percent of this need, leaving an annual shortfall of over $150 billion.
Extreme weather events, including storms, floods, and typhoons, have already caused widespread damage across the region this year, as demonstrated by the impact of Typhoon Kalmaegi in central Vietnam.
Power lines were severed, neighborhoods submerged, and residents forced to seek electricity wherever available.
The ADB report notes that 2.7 billion people in Asia-Pacific have reliable access to water, but more than 4 billion remain exposed to unsafe water, degraded ecosystems, and escalating climate hazards.
Rapid deterioration of water ecosystems in 30 of 50 studied countries, unchecked development, pollution, and land conversion exacerbate the threat.
From 2013 to 2023, the region suffered 244 major floods, 104 droughts, and 101 severe storms, undermining development gains and causing massive social and economic disruptions.
Coastal megacities and Pacific islands face growing risks from storm surges, rising seas, and saltwater intrusion.
Power systems are similarly vulnerable, with Asia’s utilities losing $6.3 billion annually to extreme heat, floods, and water shortages, a figure projected to rise to $8.4 billion by 2050 if adaptation measures are not strengthened.
Extreme heat is the costliest hazard, reducing plant efficiency and straining transmission networks across India, Indonesia, Malaysia, and other nations.
Declining river flows threaten hydropower and fossil fuel plants, while heavy rainfall and coastal flooding pose additional risks.
Despite these threats, many utilities lack detailed, funded plans to adapt, and only a few companies have fully assessed risks at the plant level or disclosed potential cost increases from climate impacts.
Experts emphasize that Asia’s rapid infrastructure growth presents both opportunities and challenges, and closing financing gaps for energy projects may be more feasible than for water and sanitation, although doing so may involve trade-offs in environmental standards.
Urgent investment and climate-resilient planning are critical to safeguard water and energy systems, protect livelihoods, and sustain economic growth in one of the world’s most climate-vulnerable regions.
