The Epicenter defines infrastructure as the physical, economic, and social systems central to the functioning of an economy and a society. Resiliency in critical infrastructure is about the ability to withstand extreme climate impacts and recover from them quickly.
If $1 invested in disaster prep saves $13, then it's clear investing in preparedness produces a higher ROI than recovery. But what does that preparation look like? An interview with Nanotech Materials offers an example of resiliency in the category of fortified roofing and building materials.
If each $1 invested in disaster preparation saves $13 in economic costs, damages, and cleanup, then it's clear that investing in the preparation for climate-related catastrophes produces a higher ROI than just focusing on recovery alone. But what, exactly, does that preparation look like?
Hurricanes are the most costly type of climate disaster. The high cost comes from population growth in hurricane-prone areas, incentives that motivate rebuilding in those same areas, and physical assets in harm's way that aren't designed to withstand severe hurricanes.
Long-term investment in voting infrastructure enables voters in NC to cast ballots. Disasters could slowly influence bi-partisan agreement for climate action. U.S. immigration policy could impede or catalyze climate migration. Presidents hold direct power over capital allocation post-disaster.
As floods become bigger and more common, insurance gaps increase costs. Climate-vulnerable mobile homes increase financial risk for communities. Pop up micro-grids offer resilience to vulnerable power grids. ReBuild NC has a deficit of over $150 Million and 1,600 people still displaced.
Part II of our Wildfires Briefing explores four categories of opportunity for the private sector: 1) Implementing modern building materials and codes; 2) Technologies for better fire management; 3) New insurance models; and 4) Private financing for forest management.
Climate change and federal policies are making wildfires more frequent and intense. Migration patterns are increasing the exposure of assets to wildfire threats. And assets that are more vulnerable to wildfires translate into higher costs.
5 Early Insights from Hurricane Helene. Climate change exacerbated the impacts of Helene. Hurricanes are no longer just a coastal threat. And utilities face growing recovery costs alongside pressure to build more resilient grid systems.
By rebuilding the same way we’ve done in the past, we’re ensuring the trend will continue: a costly and frequent cycle of destruction and reconstruction that can threaten existing assets and multiply financial losses across every sector.
Many firms can play in the adaptation space both in terms of investments and solutions. Climate Disasters are catalyzing the deterioration of our U.S Bridges. And policy-makers are moving to hold largest emitters financially accountable in effort to raise capital for adaptation efforts.
Between 2000-2009, the U.S. averaged almost seven disasters per year that cost a billion dollars or more (per disaster)