More than 60% of households and firms across South Asia have experienced extreme weather events in the past five years. This is the stark finding from a new World Bank report titled From Risk to Resilience: Helping People and Firms Adapt in South Asia. The report warns that the situation will worsen, with over 75% expecting severe weather to affect them in the coming decade.
South Asia is confronting rising threats from intense heat and flooding. Nearly 90% of the population is projected to face extreme heat by 2030, and more than one in five people are at risk of severe flooding. The report signals a critical need for stronger climate adaptation.

Private sector key to reducing climate damage
The World Bank points out that much of the effort to adapt to these growing climate risks must come from the private sector. Governments, with limited budgets, cannot meet the challenge alone.
In a press release, the World Bank stated, "More than 60 per cent of households and firms have experienced extreme weather in the last five years, and more than 75 per cent expect it for the next decade. Many households and businesses are already taking steps to adapt to climate risks."

Around 80% of households and 63% of firms have taken some adaptation measures, but these are often basic actions, like raising house foundations or installing fans. More advanced options, such as planting climate-resilient seeds or relocating from high-risk areas, are less common.
The report notes that market barriers and income constraints hold back stronger adaptation. Households with better education or access to formal finance are likelier to adopt advanced strategies. Similarly, better-managed companies face fewer regulatory obstacles and are more adaptable.

Franziska Ohnsorge, World Bank Chief Economist for South Asia, said, "Private sector adaptation could reduce one third of the region's projected climate damage, but this requires governments to strengthen enabling environments."
She added, "Adaptation is most effective when markets function well and essential services like transport, water, healthcare, and digital connectivity are widely accessible."

Governments must act to support adaptation.
The report calls for governments to act swiftly to remove barriers limiting adaptation. Martin Raiser, World Bank Vice President for South Asia, stated, "The urgency is growing. People and firms are already adapting, but they are doing so with limited tools and few resources."
He urged governments to focus on removing distortions in land and labour markets, expanding access to finance, and investing in public infrastructure that supports climate resilience.

Local examples offer hope. Cities like Ahmedabad are leading with heat action plans to protect residents from rising temperatures. These demonstrate how targeted investments and strong institutions can boost local adaptation efforts.
The report recommends policies based on three principles:

• Implement comprehensive adaptation measures.
• Prioritise solutions supporting both development and climate resilience.
• Align adaptation strategies with long-term development goals to ensure lasting progress.

Global temperature forecasts signal continued risk.
Parallel to the World Bank’s findings, the World Meteorological Organisation (WMO) released a report forecasting record-high global temperatures over the next five years. The WMO predicts an 80% chance that at least one year between 2025 and 2029 will be warmer than the current record set in 2024.
There is also an 86% chance that at least one of these years will be more than 1.5°C above the pre-industrial average (1850–1900). The five-year average temperature between 2025 and 2029 is likely to exceed 1.5°C warming, a sharp increase in risk compared to previous forecasts.

WMO Deputy Secretary-General Ko Barrett said, “We have just experienced the ten warmest years on record. Unfortunately, this WMO report provides no sign of respite over the coming years, and this means that there will be a growing negative impact on our economies, our daily lives, our ecosystems and our planet.”
The report highlights the Arctic warming at more than three and a half times the global average, continuing reductions in sea ice, and varied regional precipitation patterns—wetter conditions in northern Europe and Siberia, drier conditions in the Amazon.

Rising heatwaves and floods demand urgent action.
These warming trends will bring more heat waves, intense rainfall, droughts, melting ice sheets, and rising sea levels. Every fraction of a degree increase heightens these risks.
The WMO stresses that monitoring and climate prediction remain essential tools to help policymakers and communities prepare for these impacts.

South Asia, already grappling with flooding and heat, must accelerate its adaptation efforts. The World Bank report stresses that combining policy reforms, private sector action, and stronger government support offers the best chance to reduce future damage and build resilience.