A global warming of two degrees Celsius -- the minimum the world is likely to experience -- could result in permanent GDP reductions of four-five percent for South Asia, warns a new World Bank report.

But if developed countries act now, a 'climate-smart' world is feasible, and the costs for getting there will be high but still manageable, says the report, adding that high-income countries also need to act quickly to reduce their carbon footprints and boost development of alternative energy sources to help tackle the problem of climate change.