Negotiations at the Warsaw Climate Change Conference culminated in a compromise deal that committed the parties to a new international mechanism to address losses and damages linked to climate change. Under the plan, rich nations would pay compensation to poorer countries suffering from the worst impact of extreme weather. However, the vague wording fell short of the detailed commitments and additional funding that many developing countries are seeking. Several striking parallels exist between global warming and the 2008 global financial crisis. The excesses that have driven much of the rapid expansion in global financial markets over the past 30 years has been equalled by an apparent determination to consume ever-growing amounts of carbon-emitting fossil fuels. Much is happening in Asia on climate change mitigation. Compared to other regions, Asia has the highest rate of policy innovations and voluntary commitments to cut carbon emissions. Many countries in Asia have begun incorporating low-carbon growth components in their national development plans to attain a better balance between the environment, the economy and social welfare. One reason for this shift is the increasing awareness among countries of the vulnerability to a warming world. A warming of 2 degrees celsius could lead to losses in high-income countries and a global loss of about 1-2 per cent of gross domestic product, but Asia's middle- and low-income countries could lose as much as 6 per cent of GDP. The second reason is a growing sense of global responsibility. China is not only the world's largest producer of greenhouse gas emissions, it sees itself as a leading power, and is therefore working with other regional economies such as Japan, South Korea and India to tackle global problems like economic crises, maritime safety, nuclear proliferation and climate change. A third reason for the shift is energy security. Although China and India have large coal reserves, they are also big importers of high-carbon fuels. The push by both nations into renewables, such as solar, wind, and nuclear, has been driven by a need to diversify energy resources. The fourth reason is economic. The Kyoto Protocol gave developing countries an incentive to "green" their production activities. China has received US$2 billion and India about US$1 billion through the clean development mechanisms in the protocol to improve resource efficiency and renewable energy capacity. Local pollution may help to explain the shift in outlook. With cities growing ever more crowded, residents are fuming about rising air pollution. Policies to cut carbon dioxide can help clean the air of Asia's polluted cities. More interesting is the idea that shifting to low-carbon energy could be a source of economic growth, rather than a constraint. Countries are looking for new growth industries and low-carbon infrastructure has potential. No country dominates this market, so it represents a major business opportunity for Asia. Global warming can end through action by Asian nations. If countries are to enjoy the benefits of this low-carbon, green-growth paradigm, then macroeconomic policies must stimulate demand while ensuring debt-financed spending supports climate change mitigation activities that have high social returns. Governments must accelerate the phasing out of fossil fuel subsidies, enact long-term carbon pricing signals, enable free trade in low-carbon goods and services, and expand investment in joint research and development. Collective action by Asian countries would be in everyone's interest and could become a role model to dominate the long-running climate negotiations. Venkatachalam Anbumozhi is a capacity building specialist at the Asian Development Bank Institute in Tokyo