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THE ECONOMICS
OF CLIMATE CHANGE
IN THE ASIA-PACIFIC REGION
HIGHLIGHTS
The Asia-Pacific region is at the forefront of the impacts to the entry into force of the Paris Agreement, countries
of climate change and is uniquely positioned in global in the region are no longer looking at what should be
efforts to manage climate change. Higher temperatures, done, but rather how it can be done. To facilitate this,
sea level rise, and extreme weather events linked to this paper identifies five key priority areas of the climate
climate change are having a major impact on the region, change response for the Asia-Pacific region, and the
harming its economies, natural and physical assets, economic policies and instruments that can be used to
and compounding developmental challenges, including achieve them. First, adaptation to climatic changes and
poverty, food and energy security and health. Without improved resilience are the most immediate challenges.
climate-oriented development, climate change could Second, priority must be placed on pricing carbon to
force more than 100 million people from the region provide long-term incentives for economic actors to
into extreme poverty by 2030, wiping out the gains in switch to low-carbon pathways. Third, countries should
poverty reduction achieved over the last decades. At phase out fossil fuel subsidies, as their distortionary
the same time, the region accounts for 53 per cent of effect hinders energy efficiency and clean energy
global emissions and the high-growth pat
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