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Adaptation and Disaster Risk Financing in Asia: Toward an Integrated Climate Risk Management Framework
[Key Points]
- Climate risks and disasters in Asia are intensifying, with significant implications for fiscal sustainability, infrastructure resilience, and macro-financial stability.
- Effective disaster risk financing requires a layered approach combining adaptation and resilience investments, risk transfer mechanisms, and post-disaster financing.
- Adaptation and resilience investments are essential for reducing underlying risks and improving the effectiveness and affordability of disaster risk financing instruments.
- A common data architecture-combining hazard, exposure, and vulnerability― enables better prioritization of adaptation and resilience investments and supports disaster risk financing and fiscal risk management.
- Adaptation finance remains constrained by limited risk data and difficulties in measuring resilience outcomes. Risk-based taxonomy approaches can help align investment decisions with underlying risks.
- Strengthening integrated risk data systems and institutional coordination is critical for linking adaptation, disaster risk financing, and fiscal risk management in Asia.
- Climate risks and disasters in Asia are intensifying, with significant implications for fiscal sustainability, infrastructure resilience, and macro-financial stability.
- Effective disaster risk financing requires a layered approach combining adaptation and resilience investments, risk transfer mechanisms, and post-disaster financing.
- Adaptation and resilience investments are essential for reducing underlying risks and improving the effectiveness and affordability of disaster risk financing instruments.
- A common data architecture-combining hazard, exposure, and vulnerability― enables better prioritization of adaptation and resilience investments and supports disaster risk financing and fiscal risk management.
- Adaptation finance remains constrained by limited risk data and difficulties in measuring resilience outcomes. Risk-based taxonomy approaches can help align investment decisions with underlying risks.
- Strengthening integrated risk data systems and institutional coordination is critical for linking adaptation, disaster risk financing, and fiscal risk management in Asia.
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