Startups in Southeast Asia are working diligently to build the region’s disaster resilience by confronting the harmful effects of climate change. According to the Organisation for Economic Co-operation and Development (OECD), the ten countries in the area, and China and India, inhabit one of the most disaster-prone locations in the world. Residents face floods, storms, volcanic activity, typhoons, and earthquakes, among other dangers.

Thus, there is an urgent need for innovative solutions to limit the environmental, health, and socioeconomic impacts of the frequently increasing natural disasters in Southeast Asia. Currently, the public perception of climate change in the region is that 42.5% of respondents regard it as a serious and immediate threat. Some (47%) see it as an important issue that needs monitoring, while a few (6.1%) view it as a long-term threat that will not impact our lifetime.  

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How are startups in Southeast Asia dealing with climate concerns?

According to the Disaster Risk Index 2023 by the Asian Development Bank (ADB), nine out of fifteen nations affected by extreme weather are from Asia and the Pacific. According to the Association of Southeast Asian Nations (ASEAN), the Philippines and Indonesia have been affected the most, with 46.86% and 45.3% of respondents, respectively. For example, ADB is using its own resources to give $100 billion in cumulative climate financing to developing member countries up to the year 2030.

Here are other climate action steps ASEAN startups are taking:

Remaining agile

Fiona Williamson, Associate Professor of Environmental History at Singapore Management University, said there is a need to take anticipatory action to deal with disasters like floods. Startups are disruptive and can develop agile, technology-driven solutions to deal with the harmful impacts of natural and man-made environmental and societal problems. Their products or services can help people respond to calamities immediately, securely, and without causing further damage.

Additionally, there should be a data collection, analysis, and reporting facility to analyse past trends. This ensures experts can predict future weather occurrences and determine the ideal community response.

Adopting various technologies

There is demand for climate-related technologies as ASEAN seeks to address environmental challenges and build a sustainable future. Startups are helping with decarbonisation, waste management, tracking and reporting Environmental, Social and Governance (ESG) metrics, and improving readiness for unpredictable natural events. 

For example, Zuno Carbon leverages artificial intelligence (AI) to help businesses track their environmental footprint. Ureca uses blockchain technology to power its carbon credits marketplace. It also uses the Internet of Things (IoT) to verify emission reductions. 

Financing disaster resilience

Deputy Secretary-General of ASEAN for Socio-Cultural Community (ASCC), Ekkaphab Phanthavong, spoke of the need for innovative disaster financing at the 4th ASEAN Socio-Cultural Community Research and Development Forum on “Building Disaster Resilience to Climate-related Hazards in Southeast Asia”. 

Dr Saut Sagala from the Resilience Development Initiative highlighted the financing in the region, referencing the existence of the Southeast Asia Disaster Risk Insurance Facility (SEADRIF) and ASEAN Disaster Risk Finance and Insurance (ADRFI).

Furthermore, startups can create financial technology (fintech) platforms where the public and institutions can make donations or sell disaster response equipment. Other ways involve providing micro or full loans to not-for-profit institutions to give them liquidity to assist clients caught up in a natural catastrophe.

Establishing essential partnerships

The ASEAN Agreement on Disaster Management and Emergency Response (AADMER) establishes a policy framework for regional cooperation. It enhances risk reduction, provides methods of collectively managing catastrophes, introduces disaster tech innovations, highlights how to recover from a crisis, and promotes sustainable development. 

Moreover, adding a monitoring and evaluation element to the agreement ensures stakeholders can track milestones and review previous actions to improve performance. Partnerships between startups, governments, NGOs, and investors ensure everyone is on the same page and playing a vital role in mitigating and establishing structures for disaster recovery.

Making ASEAN more resilient in the face of climate issues

According to the United Nations (UN), Asia is warming up faster than the global average. It is experiencing casualties and economic challenges due to floods, heatwaves, and other environmental issues.

The OECD report says that the policy areas that need disaster-resilient development include governance, risk financing, infrastructure and land use planning, education, and private sector partnerships, among others. There must be sufficient budgets for coping with natural disasters in Southeast Asia, conducting robust risk assessments and regular monitoring, and offering public awareness programs. 

Climate change ranks high among the top challenges citizens in ASEAN face in 2024, alongside unemployment, economic recession, geopolitical conflicts, and widening socioeconomic gaps. Inadequate disaster resilience is another aspect that should be added to the list because it contributes to all these issues.

Ultimately, startups in Southeast Asia should remain agile and innovate cutting-edge, nature-based solutions to combat climate-related catastrophes. Regional governments must continue collaborating, create regulations that enhance disaster risk funding, and work to improve the infrastructure to deal with any emergencies.