New Delhi, Nov. 10 -- Climate change poses a fundamental threat to Asia's macroeconomic and financial stability, warranting urgent government action for sustainable energy and resilience building.

Asia contributes two-thirds of global growth and accounts for over half of the global greenhouse gas emissions largely due to its heavy reliance on coal. But it lacks adaptive capacity, including resilient infrastructure, early warning systems and social as well as financial safety nets to respond to climate change effects.

Climate-related shocks threaten economic growth and stability, exacerbated by development pressures, rising debt and decarbonisation challenges amid geopolitical fragmentation, making it a macro-critical challenge. For inst...