A new World Bank report warns that South Asia—one of the world’s most climate-vulnerable regions—faces rising threats from extreme heat, flooding and salinity, with Bangladesh among the countries at highest risk.
The report argues that while households and firms are already taking steps to cope, large-scale climate resilience will increasingly depend on private sector investment supported by targeted government policies.
The report, From Risk to Resilience: Helping People and Firms Adapt in South Asia, highlights that by 2030 nearly 90 percent of the region’s population will be exposed to extreme heat and about a quarter to severe flooding.
In Bangladesh’s coastal regions, worsening water and soil salinity is already disrupting livelihoods.
According to the assessment, awareness of climate risks is high, with more than three-quarters of households and firms expecting a weather-related shock within the next decade.
Some 63 percent of firms and 80 percent of households have already taken adaptation measures, though most rely on “basic, low-cost solutions” rather than advanced technologies or public infrastructure.
A survey covering 250 coastal villages in Bangladesh identified climate-resilient infrastructure as the most urgent unmet need.
Long-term concerns include inadequate disaster-protection structures and limited financial resources, cited by 57 percent and 56 percent of households respectively. Poor and agricultural households continue to bear the heaviest burden.
Public investments—such as embankments and cyclone shelters—have helped reduce casualties and damages. Case studies from Bangladesh, India and Pakistan show that social assistance programs, when paired with timely information, can be rapidly expanded to protect vulnerable groups. But fiscal constraints are limiting how far governments can go, shifting the focus to mobilising private sector-led adaptation.
“Bangladesh’s resilience is being continually tested by evolving environmental challenges. While adaptation is widespread, with increasing climate risks, more needs to be done,” said Jean Pesme, World Bank Division Director for Bangladesh and Bhutan. “The country’s resilience will depend on scaling up early warning systems, social protection, climate-smart agriculture, and adaptation finance—including innovative risk finance solutions—alongside targeted urban interventions.”
The report calls for a comprehensive, multi-pronged strategy that improves early warning systems and expands access to formal credit and insurance. It notes that around one-third of climate-related losses could be avoided if businesses are able to shift investments and resources in response to changing climate pressures.
Governments, even with tight budgets, can support this by widening access to finance, improving transport and digital infrastructure, and strengthening flexible social protection systems.
It also urges governments to promote resilient technologies and provide core public goods—such as durable roads and health systems—to safeguard human capital and improve access to jobs.
“Bangladesh’s experience offers both lessons and a critical test case for climate adaptation in South Asia,” said Siddharth Sharma, World Bank Lead Economist and co-author of the report. “The country’s people and businesses are already adapting, but the scale and complexity of the climate crisis demand urgent, coordinated action from government and the private sector.”
The report notes that Bangladesh’s investments in early warning systems and cyclone shelters have significantly reduced fatalities during major storms, demonstrating how targeted interventions and strong institutions can scale up local adaptation.
Looking ahead, the World Bank suggests that strengthening partnerships between government, the private sector and communities will be key to accelerating climate-smart solutions. Prioritising such actions, it says, will help ensure that Bangladesh’s path toward long-term prosperity remains resilient and inclusive.