🌍 Key Findings & Threats

According to two recent reports covered by international media, the Asian Development Bank (ADB), along with the Asia Investor Group on Climate Change research group and the MSCI Institute, warn that climate change is putting significant pressure on water and electricity systems in Asia.

• To meet water and sanitation needs from 2025 to 2040, Asia is estimated to require an investment of around US$4 trillion. However, currently, governments are only covering approximately 40% of this need—representing a significant deficit in water infrastructure investment.

• In the energy sector, the combination of extreme heat waves, droughts, and floods is already having a significant impact: electricity companies in the Asia-Pacific region are estimated to lose around US$6.3 billion annually, and losses could potentially rise to US$8.4 billion annually by 2050 without adaptation.

With such a burden, millions — even billions — of people in Asia are at risk of serious impacts: access to clean water could be disrupted, and energy (electricity) services become vulnerable to disruptions due to extreme weather.

🌧️ How Climate Change Affects Water & Electricity in Asia

🔹 Water & Sanitation Systems Under Threat

• Many regions in Asia are experiencing a decline in the quality of their water ecosystems—rivers, water basins, and wetlands are increasingly degraded. Most countries in the ADB study showed stagnation or decline in their water systems.

• The frequency of extreme events—major floods, severe droughts, and storms—is increasing. Asia-Pacific itself has contributed a significant share of global water-related disasters (floods, storms, and landslides) in the last decade.

• Unfortunately, investment in strengthening water and sanitation systems is far below estimated needs—there is a large gap between ideal needs and actual needs.

🔹 Energy & Electrical Systems Are Increasingly Vulnerable

• Many power plants (including hydroelectric power plants) and transmission networks face risks from droughts (which reduce river flows/water supplies), as well as floods and extreme weather.

• Extreme heat waves reduce power plant efficiency, shorten infrastructure lifespans, and increase operational costs (cooling, maintenance), thus driving up costs and threatening supply continuity.

• Many power utilities in Asia lack robust climate adaptation plans—planning to mitigate climate change impacts and investment in adaptation is minimal. This increases the risk of systemic power disruptions if extreme weather events recur.

👥 Who is Most Affected?

• Dense urban communities—especially in large cities or metropolitan areas in Asia—are highly dependent on water and electricity infrastructure. If water systems are disrupted, clean water crises can arise; if electricity is disrupted, daily life, public services, hospitals, and schools can be disrupted.

• Coastal and river delta areas—they face risks of flooding, seawater intrusion, rising water levels, and increasingly intense storms. This combination can damage drainage and water supply systems.

• Poor/vulnerable communities—they often live in areas with weak infrastructure, depend on public supplies, and have little capacity to adapt. Risks to health, sanitation, access to clean water, and electricity services are exacerbated.

• The water and electricity service sector—the companies and governments responsible for public services. If they fail to adapt, the entire community could suffer.

⚠️ Long-Term Implications & Urgent Needs

• Without increased investment and adaptation, damage to water and energy infrastructure could lead to water access crises and recurring major power outages—which could hinder economic development, health, education, and public well-being.

• It is crucial for countries in Asia to strengthen climate resilience—by designing infrastructure that can withstand extreme weather events, developing alternative water resources, implementing water conservation, diversifying energy sources, and implementing long-term planning.

• Collaboration between governments, the private sector, international organizations, and communities is needed to close the investment gap—so that water and sanitation infrastructure and energy targets can be met sustainably.

• Adaptation must be designed with social equity in mind—so that vulnerable communities are not left behind in terms of access to water and electricity.