Failing to Protect Coasts Could Cost Hundreds of Billions: ADB
A new report released yesterday by the Asian Development Bank (ADB) has warned that coastal areas driving the economies of the Asia-Pacific region face severe threats from climate change. According to the report titled ‘Asia-Pacific Climate Report 2026: Coastal Risks on the Rise, Actions for a Resilient Future,’ annual coastal flood losses could grow more than sixfold by 2050 without preventive action. Currently standing at approximately $27 billion across 30 coastal economies, annual damage could reach $172 billion to $199 billion by 2050, and jump to $520 billion to $ 739 billion by 2100.
The report emphasises that coastal zones are home to over 400 million people living within 10 kilometres of the sea, serving as vital hubs for trade, tourism, and major ports. Megacities such as Bangkok, Jakarta, Kolkata, and Mumbai face extreme risks, where severe 100-year flood events could happen annually by the end of the century. Additionally, trade disruptions and port operational standstills put roughly $40 billion to $45 billion in trade and assets at risk each year. Meanwhile, small coral atoll nations could see flood damage reach 30% to 60% of their GDP under high-emissions scenarios.
Stressing the urgency of adaptive action, Yevgeniy Zhukov, Director General of ADB’s Climate Change and Sustainable Development Department, stated: ‘Coastal areas are the vibrant heart of Asia and the Pacific’s progress, but rising seas and intensifying hazards mean they are losing ground. We are at a critical juncture. Protecting lives and livelihoods while sustaining economic growth requires a shift toward long-term, adaptive, and resilient solutions.’ His comments underline the necessity of transitioning immediately toward sustainable and proactive protection measures.
Fortunately, ADB highlights that timely adaptation investments could yield benefits up to 20 times higher than potential losses. Investing $9 billion to $19 billion annually in coastal protection could prevent annual flood damages between $178 billion and $360 billion. To achieve this resilience, ADB recommends integrating adaptation planning into general development decisions, strengthening governance frameworks, securing necessary financing, and ensuring effective long-term implementation. These strategic national planning frameworks are essential for countries to align short-term actions with long-term survival goals.
Addressing the crisis effectively will also require bridging a substantial financing gap across the region. Although international climate adaptation funding for Asia-Pacific coastal countries grew from $5 billion in 2015 to an average of $11.4 billion annually during 2022-2023, significant shortfalls remain compared to actual requirements. To meet these expanding needs, ADB stressed that public funds alone are insufficient, calling for enhanced public sector capacity together with expanded private, public, and concessional blended financing to secure the region’s coastal future.
