Funding Climate Adaptation and Disaster Risk Reduction Can Reduce Displacement

Disasters, mainly extreme weather, are a significant driver of displacement in Asia and the Pacific. In the last ten years, 177 million people have been internally displaced in the region. Displacements impact people’s lives and livelihoods, require humanitarian assistance, and eat away any economic gains a country has achieved.

As climate change is projected to increase the frequency and intensity of extreme weather events, internal displacements in the region will only increase. Hence, governments and their partners are called to address and respond to the root cause of the problem.

The Asian Development Bank and Internal Displacement Monitoring Centre’s (IDMC) joint report on internal displacement shows that disasters stemming from natural weather events resulted in more internal displacements (26.4 million) or forced movements within one’s country in 2023 than conflict and violence (20.5 million).

The report also examines the impact of displacements on people’s livelihoods and development. It outlines how multilateral development banks can work with governments to improve resilience, reduce risks, and curb future crises.

According to the report, most of the internally displaced persons (IDPs) tend to remain within their own country and become dependent on their government for emergency assistance. The Asian Development Bank’s developing member economies accounted for over 168 million disaster displacements between 2014 and 2023, representing 95% of the total number recorded for Asia and the Pacific region.

A country’s financial burden can significantly grow when disasters force many people to flee repeatedly and for extended periods.

In recognition of the severe effects of ongoing internal displacement on governments, the United Nations Secretary-General’s Action Agenda on Internal Displacement, released in 2022, urged international financial institutions, bilateral donors, and regional multilateral development banks (MDBs) to take action. It emphasised the importance of investing in disaster risk reduction and enhancing climate resilience to address and prevent further internal displacement.

Most governments and their partners address displacement by focusing on emergency responses, such as providing food, temporary shelter, and essentials.  

The report “Disaster Displacement in Asia and the Pacific: A Business Case for Investment in Prevention and Solutions” offers a first comprehensive overview of the scale, drivers, risks, and impacts of the displacement phenomenon in the Asia and Pacific region. It highlights that beyond the need for emergency support to affected populations, investing in preventing disaster displacement and providing durable solutions are the most efficient courses of action.

According to the report, one of the most effective ways to address displacement in the context of disasters and climate change is to invest in limiting the root causes, such as the destruction of homes due to disasters, loss of livelihoods, environmental degradation and food and water scarcity from resulting from disasters or climate change effects like sea level rise, coastal erosion, and desertification.  

MDBs can prevent internal displacement by funding government initiatives on climate adaptation, disaster risk reduction, and planned relocation. The report says such support is rarely identified as specific to displacement, but it significantly reduces it.