Prepare now or pay later? The fiscal case for climate adaptive infrastructure
A new report from the Canadian Climate Institute (CCI) finds that climate adaptation is not only an environmental necessity, but a vital function of responsible governance. The report, Prepare or Repair: How climate-proofing public infrastructure pays off, outlines how Canadian governments could save between $5 to $10 billion annually through 2100 by proactively investing in climate-resilient infrastructure. The report’s findings suggest that investing $3 billion per year in adaptation could prevent most projected damage anticipated from increasing temperatures and storm events, and provide more capital to other initiatives. The recent news release by the CCI makes it clear that failing to prepare now risks paying far more in the future.
Canada’s infrastructure systems are already experiencing significant wear and failure as aging roads, bridges, and water systems face our evolving climate realities. Climate change is clearly not a distant environmental issue, but a present-day fiscal and infrastructure challenge. This means that by delaying adaptation, our governments are choosing to accept the escalating repair costs. Moreover, the projected savings account only for selected risks, primarily heat and heavy rainfall, which means the true cost of inaction is likely much higher. Even under proactive adaptation scenarios, infrastructure-related costs are expected to rise by about $5 billion annually on average until 2100.
We know that climate change will impose unavoidable damage; however adaptation can help to reduce the impacts. The findings from this report also highlight the fiscal imbalance at present, where municipalities are expected to bear most adaptation costs, even though the economic benefits of resilient infrastructure extend nationwide. Effective climate governance must therefore incorporate strong financing and revenue tools to support adaptation.
To do so effectively, the report calls on federal, provincial, and territorial governments to expand adaptation funding, modernize financing tools, strengthen climate data, and ensure infrastructure planning reflects projected climate conditions. Climate data makes it clear that proactive adaptation is not optional. In an era of escalating climate risk, climate-proofing by investing in resilient infrastructure today will shape Canada’s economic stability and the climate-readiness of our communities for decades.
Written By: Sabrina Careri
Image credit: Harry Spink from Unsplash