UN-ESCAP Report – Economic and Social Survey of Asia and the Pacific, 2025

Context: The United Nations ESCAP released the Economic and Social Survey of Asia and the Pacific 2025, warning that Asia-Pacific economies face significant macroeconomic risks due to intensifying climate shocks and insufficient readiness for green transitions.

Summary of UN-ESCAP Report – Economic and Social Survey of Asia and the Pacific 2025:

• Climate shocks could cause annual economic losses of at least 6% in a third of Asia-Pacific countries.

• The Asia-Pacific region contributed 60% of global economic growth in 2024.

• Countries Identified as Most Climate-Vulnerable (11 out of 30): Afghanistan, Cambodia, Iran, Kazakhstan, Laos, Mongolia, Myanmar, Nepal, Tajikistan, Uzbekistan, Vietnam.

• Climate-induced GDP losses: For 30 countries, Average Annual Loss (AAL) is 4.8% of GDP.

• Main causes of vulnerability: Infrastructure deficits Agriculture-dependent economies Rapid, unregulated urbanisation Inadequate disaster risk management

• Infrastructure deficits

• Agriculture-dependent economies

• Rapid, unregulated urbanisation

• Inadequate disaster risk management

• Climate Vulnerability of Asia-Pacific Region:

• Region faces frequent extreme events: floods, droughts, cyclones, heatwaves. Economic sectors most exposed: agriculture, energy, coastal manufacturing. Poorer nations lack climate finance, resilient infrastructure, and public finance capacity.

• Region faces frequent extreme events: floods, droughts, cyclones, heatwaves.

• Economic sectors most exposed: agriculture, energy, coastal manufacturing.

• Poorer nations lack climate finance, resilient infrastructure, and public finance capacity.

• Proposed Solutions in the Report:

• Proactive Fiscal Interventions: Governments should shift investment towards high-productivity, green sectors. Climate-Smart Industrial Upgradation: Promote green value chains and sustainable production models. Regional Cooperation: Develop inclusive frameworks for shared green transition between developed and developing countries. Better Risk Assessment Tools: Adopt mechanisms like ESCAP’s Risk and Resilience Portal to track economic loss potential.

• Proactive Fiscal Interventions: Governments should shift investment towards high-productivity, green sectors.

• Climate-Smart Industrial Upgradation: Promote green value chains and sustainable production models.

• Regional Cooperation: Develop inclusive frameworks for shared green transition between developed and developing countries.

• Better Risk Assessment Tools: Adopt mechanisms like ESCAP’s Risk and Resilience Portal to track economic loss potential.

Relevance in UPSC Exam Syllabus:

• GS Paper 3 – Environment & Economy

• Climate change impacts on economic growth. Sustainable development and green financing.

• Climate change impacts on economic growth.

• Sustainable development and green financing.

• GS Paper 2 – International Relations

• Role of UNESCAP and regional climate diplomacy. Climate justice and global cooperation in addressing transboundary risks.

• Role of UNESCAP and regional climate diplomacy.

• Climate justice and global cooperation in addressing transboundary risks.

• Essay Paper:

• Useful for themes like “Climate Resilience is Economic Resilience” or “Sustainable Development in the Global South.”