ADB Launches Climate Risk Initiative in Bhutan and Nepal

The Asian Development Bank (ADB) has recently launched a new initiative aimed at assisting in the evaluation and management of climate and disaster risks in the Hindu Kush Himalaya regions of Bhutan and Nepal.

As per ADB's announcement, the program's goal is to carry out an all-inclusive study of multi-hazard risks, including landslides, earthquakes, floods, and glacial lake outbursts.

"Such assessments will be utilized for creating early warning systems and risk management strategies for upcoming infrastructure projects," mentioned the official statement.

The Hindu Kush Himalayas are vital in supporting the livelihoods of 240 million individuals residing in mountainous regions and over 1.6 billion people downstream, contributing to 10 major rivers. "The area is experiencing a faster rate of warming compared to the global average. If global temperature increases reach three degrees Celsius, 75 percent of glaciers in Bhutan and Nepal could vanish by the end of the century."

This situation could strain water access, endanger food and energy security, and cause significant biodiversity loss.

Masatsugu Asakawa, ADB's president, expressed his concern regarding climate change's effects on the region while emphasizing its crucial role in maintaining the well-being and economic security of over one billion people. He asserted that the initiative would offer vital information to both Bhutan and Nepal, enabling effective climate adaptation measures that are essential for managing climate risks.

The announcement underlined that disaster-related economic losses in the Hindu Kush region reached USD 45 billion between 1985 and 2014 – larger than any other mountainous area. The growing frequency and severity of such disasters have further escalated economic damages and impacted an increasing number of people.

The aid aims to help governments, private sectors, and local communities comprehend the risks they are confronted with, enabling them to make informed choices regarding disaster risk reduction, implementation of adaptation measures, and risk transfer solutions such as insurance. This technical assistance will pave the way for developing knowledge across the Hindu Kush Himalaya region related to climate-resilient investment planning, development, and risk management.

ADB has pledged to offer USD 100 billion in climate financing from its own funds between 2019 and 2030, allocating USD 34 billion for adaptation efforts. In 2022, ADB committed USD 7.1 billion in climate financing that includes USD 4.3 billion for mitigation measures and USD 2.8 billion for adaptation efforts while mobilizing an extra USD 548 million in climate finance from the private sector last year.