The report highlights that it can cause losses equal to almost 10% of the country’s annual gross domestic product (GDP) by 2100. Nepal would see economic losses equivalent to up to 2.2% of annual GDP by 2050, widening to 9.9% by the end of the century. But if mitigation and adaptation steps are taken, the damage could be limited to around 2.4% of GDP by 2100.
Similarly, countries like Bangladesh, Bhutan, India, Maldives, Nepal, and Sri Lanka of South Asia will see an average economic loss of 1.8% of their collective GDP every year by 2050.
Regarding the melting glaciers in Nepal's mountainous areas, landslides are likely to increase, threatening lives and infrastructure. It strictly marks a risk to both human settlements and hydropower systems as they form high-altitude lakes causing catastrophic flooding downstream.
Making a suggestion the report marked that at least $73 billion, or an average of 0.86% of its GDP needs to be spend as the cost of climate change adaptation measures in South Asia every year between now and 2100.
"On the other hand, if countries act together to keep the rise in global temperatures below 2.5°C, the cost of South Asia shielding itself from the worst of the impacts would be nearly halved to around $40.6 billion, or 0.48% of GDP," it suggested.