Strategic investment in climate resilience and adaptation could protect the economy from future losses for the countries like Bangladesh as research finds that every dollar invested in adaptation can yield returns equivalent to ten dollars.
"Bangladesh has already made notable progress in priority areas of climate resilience. However, despite these efforts, the country continues to face substantial annual financial losses from rising sea levels, cyclones, river erosion, salinity intrusion, and floods…..experience ten times more damage from extreme weather than high-income nations and take four times longer to recover," a study report has comments. The report sends a clear message for Bangladesh and other vulnerable nations, acting now on climate resilience is both an economic opportunity and a safeguard for lives, livelihoods, and future growth.
"Returns on Resilience Investing in Adaptation to Drive Prosperity, Growth & Competitiveness," was unveiled on Thursday by a consortium of 20 organizations led by the international group Systemic during the World Bank and IMF Annual Meetings in Washington, D.C.
The report highlights that bankrolling in climate resilience could create hundreds of thousands of jobs in Bangladesh's agriculture, construction, and infrastructure sectors by 2035. If current trends continue, global GDP could decline by 18-23 per cent by 2050, with particularly severe consequences for countries like Bangladesh that rely heavily on agriculture, fisheries, and coastal settlements.
Scaling up adaptation measures could increase economic growth in developing countries by up to 15 per cent by 2050, reduce foreign debt costs, and prevent up to two million avoidable deaths annually through improved water, health, and sanitation systems, it said.
The report warns that achieving global climate resilience requires $350 billion in annual investment by 2035. Currently, only $54 billion is being invested, leaving a $296 billion gap. For every $1 invested in resilience, $87 is still being spent on infrastructure vulnerable to climate risks.
"Analysis estimates that climate resilience investment could create 28 million new jobs across developing countries by 2035. At the same time, the global adaptation market is projected to reach $1.3 trillion annually by 2030."
