Higher temperatures, sea level rise, and extreme weather events linked to climate change are having a major impact on the Asia-Pacific region, harming its economies, natural and physical assets, and compounding developmental challenges, including poverty, food and energy security and health. Many countries in the Asia-Pacific region are geographically vulnerable and highly exposed to the damaging impacts of climate change. Without climate-driven development, climate change could force more than 100 million people into extreme poverty by 2030, wiping out the gains in poverty reduction achieved over the last decades. Climate change is the result of a massive market failure. Taking into account the urgency of the climate change challenge and the focus on implementation now that the Paris Agreement (PA) has entered into force, this paper identifies the five key priority areas for the Asia-Pacific region, and the economic policies and instruments that can be used to achieve them.