Why in news :  Climate shocks could cause annual economic losses of at least 6% in a third of Asia-Pacific countries , according to UN report .

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Climate change can be a natural process where temperature, rainfall, wind and other elements vary over decades or more. In millions of years, our world has been warmer and colder than it is now.

Incidences of Climate shocks

• Temperature Rise : Based on the global average temperature for the most recent 10-year period (2014- 2023), the Earth is now about 1.2°C warmer than it was in the pre-industrial era (1850- 1900). 2023 was the warmest year on record, with the global average near-surface temperature 1.45°C above the pre-industrial baseline. The period 2011-2020 was the warmest decade on record for both land and ocean.
• Rising Sea Levels: Global sea levels rose 8–9 inches (21–24 cm) since 1880, accelerating to 3.6 mm/year (2006–2015)—2.5× faster than 20th-century rates
• Rising Severe Storms & Cyclones : Warmer oceans provide energy for storms; altered wind patterns.461 tornadoes by April 2025, including 59 EF-2+ twisters; EF-3 tornadoes in Tennessee (160 mph winds) killed 5.
• Jet Stream Disruption :   Arctic warming reduces temperature gradients, weakening polar vortex winds .  Early polar vortex collapse shifted winds to easterly, triggering cold snaps in the U.S. and Europe.Increased "waviness" in jet streams links to prolonged droughts/heatwaves (e.g., 2021 Pacific Northwest heat dome)

Key drivers of Climate Shocks 

• Greenhouse Gas Emissions : : Accumulation of CO₂, CH₄, N₂O, and other GHGs causes the earth’s atmosphere to trap more heat, amplifying climate anomalies.
• Ocean-Atmosphere Interactions : Events like El Niño, La Niña, and Indian Ocean Dipole change rainfall patterns, intensify droughts/floods, and disrupt monsoons. The 2015 El Niño led to severe droughts in southern Africa and Indonesia while flooding parts of South America.
• Deforestation and Land Use Changes : Clearing forests reduces carbon sequestration, alters evapotranspiration cycles, and changes local albedo, creating regional feedback loops. The Amazon’s deforestation is contributing to decreased rainfall in southern Brazil, heightening drought frequency.
• Aerosol and Black Carbon Emissions : While aerosols can cool the atmosphere by reflecting sunlight, black carbon absorbs heat and settles on snow, accelerating melting. Black carbon from Indo-Gangetic Plain has been linked to rapid glacial retreat in the Himalayas.

Climate Change Threat to  Macroeconomic Stability in Asia-Pacific

• Average Annual Loss (AAL) : UNESCAP ( United Nations Economic Social Council For Asia Pacific )  employs the Average Annual Loss (AAL) metric to estimate yearly economic damages from disasters. This calculation integrates factors such as hazard frequency, severity, exposure levels, and societal vulnerability. Among the 30 Asia-Pacific nations studied, AAL constitutes an average of 4.8% of GDP. However, countries like Cambodia (nearly 11%), and Fiji, Myanmar, and Pakistan (at least 7%) face disproportionately higher economic risks.
• Vulnerability of Developing Economies : Out of the 30 countries assessed, 11 developing economies—namely Afghanistan, Cambodia, Iran, Kazakhstan, Laos, Mongolia, Myanmar, Nepal, Tajikistan, Uzbekistan, and Vietnam—exhibit acute vulnerability to climate-related macroeconomic shocks. Rapid urban expansion and underdeveloped infrastructure, especially in coastal zones, exacerbate climate risk and contribute to escalating economic losses. Despite driving 60% of global economic growth in 2024, many of these nations lack the adaptive capacity to effectively withstand climate-induced disruptions.
• Sectoral Exposure :  The agriculture sector is particularly exposed, with rice yields expected to decline by up to 14% by 2050, posing serious threats to food security and farmer livelihoods in countries such as India. Additionally, economies heavily dependent on fossil fuels—including Indonesia, India, and China—are at risk of substantial economic disruption due to the ongoing shift toward renewable energy, potentially leading to widespread job losses and reduced state revenues. Meanwhile, the fisheries sector is projected to suffer significantly, with fish stocks in tropical regions anticipated to decline by up to 30% by 2050, undermining food systems and coastal economies.

Major Climate Change Impacts on India’s Economy

• India’s Economic Impact: According to the Asian Development Bank (ADB), climate change could reduce India’s GDP by 24.7% by 2070, severely affecting economic growth.
• India is experiencing rising temperatures, with more frequent and intense heatwaves expected in the coming years. The World Bank (2022) estimates that by 2030, India could lose 34 million jobs out of a projected 80 million global job losses caused by heat stress reducing productivity. Furthermore, 4.5% of India’s GDP may be at risk due to reduced working hours in extreme heat and humidity.
• Agricultural Decline: Increasing temperatures and unpredictable rainfall are lowering crop yields, particularly for rice and wheat. The World Bank warns that if global temperatures rise by 2°C by the 2050s, India might have to import over twice as much food grain compared to a no-climate-change scenario.
• Rising Sea Levels: With a 7,500 km coastline, India is highly vulnerable to sea-level rise, with 32% of its shores already eroded between 1990 and 2018.
  Major coastal cities like Mumbai and Kolkata face growing flood threats, while the Sundarbans could lose up to 80% of its area by 2100.
• Extreme Weather Events: As per Germanwatch’s Climate Risk Index (1993–2023), India ranks 6th among the most climate-vulnerable nations.
  Over the past three decades, India has suffered more than 400 extreme weather events, leading to economic losses of USD 180 billion and over 80,000 deaths.

Way Forward to Curb Climate-Driven Economic Losses

• Embrace Circular Economy: Asia-Pacific nations should adopt circular economy models, where waste from one sector becomes a resource for another, reducing emissions and optimizing resource efficiency. India can lead by developing Zero Waste Cities through Waste-to-Wealth programs, minimizing landfill dependency and maximizing material reuse.
• Foster Green Innovation: Support climate-tech startups working on breakthrough solutions like carbon capture, renewable energy storage, and clean production technologies.
  India can accelerate green innovation by leveraging initiatives like the Atal Innovation Mission and Startup India, while securing additional funding from the Green Climate Fund (GCF) to scale sustainable solutions.
• Climate-Resilient Infrastructure: Invest in flood-resistant urban planning and heat-proof construction to safeguard cities against extreme weather.
  India should integrate climate adaptation into the Smart Cities Mission and National Action Plan on Climate Change (NAPCC).
  Creating climate-smart Special Economic Zones (SEZs) with sustainable infrastructure—similar to the UAE’s Masdar City—can attract eco-friendly industries and boost green growth.
• Green Taxonomy: India should establish a clear green classification system to direct investments toward sustainable sectors, aligning it with the NAPCC to enhance transparency in green financing.
• Global Climate Funds: Financial mechanisms like the Loss and Damage Fund (LDF) are vital for helping Asia-Pacific countries build climate resilience, adopt sustainable agriculture, and transition to renewables.
  Expanding the LDF’s reach and funding is essential for effective climate adaptation across vulnerable regions.

Source : 

https://www.downtoearth.org.in/climate-change/climate-shocks-could-cause-annual-economic-losses-of-at-least-6-in-a-third-of-asia-pacific-countries-warns-un-report#:~:text=A%20new%20United%20Nations%20report,acute%20vulnerability%20to%20climate%20change.

Where to use : 

Paper I ( Geography optional )  : Man response to Climate Change 

Paper III ( General Studies ) : Global warming and Climate Change