Governments, investors and banks have poured about $100 billion into efforts to handle the effects of climate change in Asia in the past five years, with water and infrastructure projects attracting the majority of the capital.
More than 90 percent of the investment between 2021 and 2025 was made by state-related organizations or development finance institutions, according to a study of 165 funding groups published Monday.
Road elevation and drainage, water basin management, and training for farmers were among the activities that attracted the most funding, said the report by the Centre for Impact Investing and Practice, in conjunction with partners including Singapore’s state investor Temasek Holdings, Invesco and ImpactSF. The study mainly analyzed investments in China, India and Southeast Asia.
Climate adaptation is slowly being seen as a potential target area for private investors rather than simply a government responsibility, particularly with expectations that projects and services aimed at bolstering resilience will post strong growth in coming decades. Revenue generated from adaptation solutions could hit $4 trillion by 2050, Singapore’s sovereign wealth fund GIC estimated last year.
