DBS Bank, the largest bank in Southeast Asia, is making climate adaptation a key focus for 2026. In a recent interview, Helge Muenkel, the bank’s chief sustainability officer, shared that they aim to develop financial solutions for initiatives helping communities cope with climate change.
Adaptation strategies such as building sea walls or creating heat-resistant infrastructure are essential to mitigate the impacts of climate change. A physical climate risk assessment helps businesses understand threats like wildfires or rising temperatures, allowing them to become more resilient.
DBS plans to collaborate with a global think tank to find effective financing strategies for climate adaptation. Muenkel noted that existing options like sustainability-linked loans and green bonds could be adapted for this purpose, while public-private partnerships may help share costs and risks.
Climate adaptation has been historically underfunded compared to climate mitigation. A recent UN report states that developing nations will need over $310 billion annually by 2035 to address climate change. Yet, only $26 billion was provided in 2023. The urgency for action is increasing as extreme weather becomes more common.
Muenkel pointed out that the Asia-Pacific region faced $73 billion in losses from natural disasters, but only $9 billion was insured. This emphasizes the need for more robust financial backing for adaptation projects.
However, many adaptation initiatives, such as coastal defenses, often lack revenue generation, making private investments challenging. A November 2025 report stressed the importance of mobilizing public, private, and philanthropic funding to address this gap.
As part of its adaptation efforts, Singapore plans to pass a coastal protection law that requires businesses along shorelines to implement protective measures. While waterfront companies support the initiative, they also express concerns about the financial impacts of compliance.
The reality of climate change is not limited to Singapore. Southeast Asia is particularly vulnerable, facing threats like rising sea levels and increased flooding. These events strain agriculture and infrastructure, necessitating resilient community strategies.
While adaptation is crucial, Muenkel reiterated that it should not lessen the urgency of reducing greenhouse gas emissions. Investment in sustainability remains vital, even amidst other pressing geopolitical issues.
In its latest sustainability report, DBS highlighted its commitment, issuing $41 billion in sustainable bonds in 2025, a rise from previous years, reflecting a dedication to clean energy projects.
To sum up, climate adaptation is about preparing for what’s unavoidable, while climate mitigation focuses on preventing further damage. As Muenkel aptly stated, “If mitigation is about avoiding the unmanageable, then adaptation is managing the unavoidable.”
For further information on climate adaptation funding, you can explore resources from the UN Environment Programme here.
