As climate-driven storms, floods and water shocks intensify across Southeast Asia, adaptation and resilience are emerging not only as urgent necessities but as major economic opportunities, according to a new analysis by the World Economic Forum (WEF).
In a commentary published on PreventionWeb, authors Anne Christianson and Ying Jie Tan argue that climate adaptation and resilience could represent a trillion-dollar annual investment opportunity globally by 2050. Yet, nearly 90 per cent of current adaptation finance still comes from public sources, highlighting a significant gap in private-sector participation.
The warning comes amid a string of extreme weather events in the region. During the 2025 United Nations Climate Change Conference (COP30) in Brazil, Typhoon Kalmaegi and Super Typhoon Fung-Wong struck the Philippines, Viet Nam and Thailand within days of each other, causing an estimated combined damage of $600 million. More broadly, floods alone cost Southeast Asia over $2 billion in direct losses each year, a figure that does not account for productivity losses, supply-chain disruptions and health impacts.
The region’s vulnerability is acute. Countries such as Viet Nam, the Philippines, Indonesia, Thailand and Cambodia face high exposure to coastal and riverine flooding, compounded by rapid urbanisation and uneven planning standards. Water, the authors argue, provides a practical lens for understanding and addressing these risks, as it underpins agriculture, energy, manufacturing and urban stability.
Despite rising risks, adaptation continues to be viewed largely as a public responsibility. A recent WEF and Boston Consulting Group report, The Resilience Opportunity estimates that scaling infrastructure through public-private collaboration could unlock between $320 billion and $500 billion annually. Ocean- and water-related climate solutions alone may require around $1 trillion in financing by 2030, yet private capital currently accounts for less than 1 per cent of total ocean finance flows.
The year 2026 has been dubbed the “Year of Water” ahead of the upcoming UN Water Conference in December in the United Arab Emirates, placing water security high on the global agenda. Discussions at the WEF Annual Meeting in Davos and upcoming forums such as Singapore International Water Week are expected to focus on water innovation, sustainable finance and climate resilience.
Regional initiatives, including the Southeast Asia Partnership for Adaptation through Water (SEAPAW), aim to bridge gaps between governments, financiers and businesses by improving risk data, developing investment-ready projects and promoting hybrid infrastructure that combines green and grey solutions.
The authors contend that adaptation should no longer be seen as a cost centre but as a strategic investment. Opportunities range from financing coastal defence technologies and circular water systems to deploying AI-driven flood forecasting and resilience-linked financial instruments.
For Southeast Asia’s private sector, the message is clear: water resilience is not only critical for safeguarding communities and supply chains but also a pathway to long-term competitiveness in an increasingly volatile climate.