By adopting green infrastructure in place of some gray infrastructure, Kansas City reduced the total costs of managing its combined sewer system through 2040 by over $2 billion.
The economic losses from disasters that are not covered by insurance continue to grow, but resilience projects are generating measurable positive returns.
The Weekly: Cities Are Cutting Billions in Sewer Compliance Costs by Letting Nature Do the Work
By adopting green infrastructure in place of some gray infrastructure, Kansas City reduced the total costs of managing its combined sewer system through 2040 by over $2 billion.
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- Feature: Part two of our series on green infrastructure, covering how Kansas City will reduce the total costs of managing its combined sewer system through 2040 by over $2 billion. - In the news: She watched a wildfire destroy her town. Now she’s building fireproof bunkers. - From the archive: How to sell flood infrastructure: Make it a park.
American cities have been under federal order to fix their sewer systems for decades. About 700 municipalities across the U.S. operate combined sewer systems that collect both sewage and stormwater in the same lines. During heavy rain, water volume can overpower the pipes’ capacity, sending raw sewage into local waterways.
The Environmental Protection Agency (EPA) has issued 91 consent decrees (legally binding settlement agreements requiring cities to reduce sewer overflows) since 1998. The compliance path for cities has almost always been the same: build bigger pipes and deeper tunnels, at costs that can reach into the billions. Kansas City found a different way, which could become a blueprint for cities across the country.
Kansas City, Missouri, signed a consent decree in 2010, then did something no other U.S. city had done: negotiated a modification of the decree to incorporate green infrastructure—natural systems like rain gardens and drainage channels that absorb stormwater before it reaches the pipes—as a formal compliance strategy.
By adopting green infrastructure in place of some gray infrastructure (conventional pipes, tunnels, and storage basins), the amended consent decree reduced the total costs of managing the combined sewer system through 2040 by over $2 billion.
“The city's consent decree drives much of our green infrastructure work and investments," says Andy Shively, KC Water Deputy Director of Smart Sewer, Wastewater & Stormwater Engineering. "The city is required to capture combined sewer overflows, and green infrastructure is an effective tool for that purpose."
The modification to Kansas City's 2010 consent decree introduced an "adaptive management" process. The city has more flexibility to propose alternative projects that use emerging technologies and more cost-effective control measures. The result was a dramatic reduction in projected costs.
"Relying solely on traditional gray infrastructure—like massive underground storage tunnels—is incredibly expensive and provides minimal community co-benefits,” says Shively. “Green infrastructure captures and utilizes rainwater where it falls, which naturally decreases the volume of water rushing into combined sewer systems and can ultimately eliminate the need to build larger, cost-prohibitive tunnel systems." And the savings get passed on: "By investing in green infrastructure maintenance," Shively notes, "the city prevents stormwater from overloading the sewer system, which ultimately helps reduce overall system costs for all utility customers."
The EPA has since tracked 18 cities or counties that have woven green infrastructure into their consent decree compliance strategies, including Louisville, Kentucky, which projects initial savings of $40 million by substituting green infrastructure for gray, and South Bend, Indiana, which is saving more than $400 million through a hybrid gray-and-green approach.
These cities have realized that the cheapest way to comply with a federal mandate to stop flooding waterways with sewage is often to absorb water before it reaches the pipes. For municipalities facing the sticker shock of updating water infrastructure that’s overwhelmed by today’s severe storms, Shively’s advice is to “use green to reduce the cost of gray.” And "frame resilience investments as iterative and flexible. By using real-time data and continuous monitoring, you can optimize project performance over time, pivot when necessary, and reduce program expenses by hundreds of millions of dollars while still meeting regulatory requirements."
We also spoke with the city of Hoboken, where green infrastructure has reduced flooding by 88%. Read more about what Hoboken has done here in part one of our series on green infrastructure.
Complex Cats, Talent Exodus Will Confound Insurance Models This Year: Sedgwick | Insurance Journal | A report by global claims administrator Sedgwick predicts that the 2026 catastrophe season will be harder for insurance carriers to predict as secondary perils become more impactful and extreme weather events like tornadoes expand outside their traditional geographies.
The Most Comprehensive Wildfire Budget Ever | The Hotshot Wake Up | A House appropriations proposal would expand federal investment in wildfire preparedness, response, and resilience. The plan includes funding for a proposed U.S. Wildland Fire Service, firefighter pay and housing, prescribed burning, forest restoration, AI-powered fire forecasting, satellite detection systems, and new technologies for risk reduction.
The FOMO Problem: Why Climate Adaptation Still Isn’t Scaling | America Adapts | Climate adaptation is usually framed as a funding challenge, but in this podcast conversation, Shalini Vajjhala argues that the bigger obstacle is the systems that turn ideas into infrastructure. The discussion explores why resilience projects get stuck in planning, the overlooked role of project predevelopment, and how declining institutional trust and capacity can slow implementation.
Read more about resilient public infrastructure and government solutions on The Epicenter here.
Real Estate & Construction
The Future of Real Estate: Building Resilience in Real Estate | World Economic Forum | In this short video, Majid Al Futtaim Properties CEO Ahmed Ismail argues that sustainability and resilience investments in real estate are a “trade-on,” not a trade-off, offering cost efficiency, more value, and a better customer experience.
She Watched a Wildfire Destroy Her Town. Now She’s Building Fire-Proof Bunkers | BBC | This story follows experiments with new ways to build for a future of more frequent and intense wildfires: The creation of the Fort, a fire-resistant refuge structure designed to protect people when evacuation fails, as well as other emerging technologies such as retractable underground homes.
Read more about resilient real estate on The Epicenter here.
Private Investment
Extreme Weather Has Shifted $20 Trillion Across the Global Economy This Century | Climate Proof | Bloomberg Intelligence estimates that extreme weather has shifted more than $20 trillion across the global economy this century, with companies focused on adaptation and resilience emerging as some of the biggest beneficiaries. The analysis found that a basket of adaptation- and mitigation-focused firms outperformed the S&P Global 1200 by nearly 32 percentage points over the past year.
Hedge Funds Are Expanding Desks Designed to Profit From Natural-Catastrophe Risk | Insurance Journal | Climate-driven disasters are becoming more consequential for markets, and hedge funds, banks, and trading firms are racing to hire catastrophe modelers once found primarily in the insurance-linked securities world. Demand is growing for experts who can translate extreme weather risk data into investment strategies, portfolio management, and asset valuation.
Read more about private investment on The Epicenter here.
How to Sell Flood Infrastructure: Make It a Park | The Epicenter Editors | Cities spent decades building pipes and pumps to move water out fast. Hoboken tried absorbing it instead—and cut flooding by 88%.
The Federal Climate Retreat and Rise of a New Adaptation Ecosystem | Marissa Knodel | The federal government's retreat from climate adaptation has created a gap in data, funding, and coordination, but a new decentralized ecosystem of nonprofits, state governments, and coalitions is stepping up to fill the void and may prove more resilient to political disruption in the long run.
How Incremental CRE Actions Add Up to Resilience | Abby Ross | Incrementalism is often dismissed as not scalable enough to translate into population-level outcomes. But a series of incremental changes, conducted by various stakeholders in concert, can translate into new norms, higher standards, and more resilient cities.
The Statistic of the Week
56%
According to a survey of 107 asset owners and managers, 56% say they are engaging investees in conversations on physical climate risk and resilience. Of those, 76% say they’re asking corporations about their resilience/adaptation planning and capital expenditures.
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The Epicenter helps decision makers understand climate risks and discover viable resilience solutions. The Epicenter is an affiliated publication of The Resiliency Company, a 501(c)3 nonprofit dedicated to inspiring and empowering humanity to adapt to the accelerating challenges of the next 100+ years.
The economic losses from disasters that are not covered by insurance continue to grow, but resilience projects are generating measurable positive returns.
Early proof points are what eventually unlock scale, and they almost never look like proof when they begin. We need the compounding of resilience over time, and we need to recognize when the next disaster creates a narrow window for rapid investments in resilience—all at once.