Climate change report calls for billions in spending
A recent report from the Canadian Institute for Climate Choices, an independent, federal funded climate policy research institute, calls for governments to direct public and private investment toward more resilient infrastructure in order to save billions of dollars in reduced loss and damage.
The report, Under Water: The Costs of Climate Change for Canada’s Infrastructure, looks at the impact of three types of climate change impacts to some of Canada’s most vital infrastructure: flooding of homes and buildings, damage to roads and rails, and impacts on electricity grids.
It finds that climate change impacts could leave Canadians physically and financially under water as a warming and increasingly volatile climate damages public and private infrastructure.
“Climate change is a massive threat to the public and private infrastructure that underpins Canada’s prosperity,” said Ryan Ness, the institute’s adaptation research director. “The challenge for governments today is to rapidly shift how infrastructure decisions are made in ways that factor in a changing climate. If these investments are planned wisely, Canada’s infrastructure can be the foundation of a resilient, low-carbon future.”
For example, the report warns that flood damage to homes and buildings could increase by a factor of five by the middle of the century and by a factor of 10 by the end of the century, with costs as high as $13.6 billion annually.
It also warns of the rising costs of damages to roads and railways, which could rise by up to $5.4 billion annually by mid-century and by as much as $12.8 billion annually by end of century, and of the cost to repair and maintain electrical infrastructure, which could more than double by the middle of the century and triple by end of the century.
Homes, buildings and critical infrastructure are all at risk, unless new investment and improved regulation make these assets more resilient to the changing climate.
“A consensus is emerging that climate change and its fallout will have significant impacts on economies, financial systems, and the companies that operate within them,” said Davinder Valeri, director of strategic risk & performance with the Chartered Professional Accountants Canada. “For informed and effective decision making going forward, it is essential that all aspects of costs associated with climate change be captured. Improved disclosure of climate-related financial risks is key to incorporating long-term resiliency into our infrastructure planning.”
The report recommends government spend in targeted areas, such as on shoreline protection, and moving homes out of high-risk areas to reduce the future costs of coastal flooding by up to 90 percent. It also recommends repaving roads with resilient materials to reduce costs by over 90 percent, and using resilient materials when updating electrical infrastructure to reduce damage costs by 80 percent.
This latest report is the third in a series being prepared by the Canadian Institute for Climate Choices. It released ‘Tip of the Iceberg: Navigating the Known and Unknown Costs of Climate Change for Canada,’ in December 2020, and ‘The Health Costs of Climate Change: How Canada can Adapt, Prepare and Save Lives,’ in June of last year.
A fourth report, the focus of which is on Canada’s North, is scheduled for release next spring.