ISLAMABAD: The Asian Development Bank says regional cooperation is critical to mobilise climate finance, notably from the private sector as Asia requires an estimated $1.1 trillion a year to address climate change, whereas with only $300 billion currently made available in the region, the financing needs remain large.

Regional cooperation has already proven effective in developing sustainable financial markets to raise the required financing. Regional cooperation is essential to monitor and mitigate macro-financial risks from climate change. The regional financial safety net requires an upgrading of its policy frameworks to manage climate-related crisis, says the Asian Economic Integration Report 2025 published recently.

The ADB report notes that substantial economic damage and financial risks from Asia’s high vulnerability to climate change endangers regional financial integration. Asia is hit hard by the rising frequency and severity of storms, floods, heat waves, and droughts. The threat to livelihoods from rising sea levels is especially pronounced in the region, where 70 per cent of the global population vulnerable to sea level rise resides. Immediately climate-dependent........

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