Developing Asia needs to shell out 300 billion dollars every year if it intends to meet the goals agreed to at the 2015 Paris climate summit, the Asian Development Bank (ADB) said Tuesday.
In an update of its annual development outlook report, the Manila-based ADB said the sum was substantial, but the rewards in terms of economic returns from shifting to low-carbon policies would be huge.
"ADB estimates that the region can generate more than 2 dollars in gains for each 1 dollar of cost it bears to reach the Paris goal – if the right steps are taken," ADB deputy chief economist Juzhong Zhuang said.
The 300 billion dollars would have to be paid annually through 2050 and should fund projects in renewable power, carbon capture and storage, clean-power supply technology, smart grids and energy storage.
Reduced investment in fossil fuel extraction could help offset 20 per cent of the cost, according to the ADB report.
Urging action, Zhuang said achieving the 2-degrees-Celsius goal by adopting low-carbon policies were needed to mitigate the increasingly devastating impacts of climate change.
Developing Asia, home to nearly 4 billion people, faces severe risks from climate change ranging from droughts to floods, which if uncontrolled could cut the region's economic growth by more than 10 per cent by 2100, the ADB said.