Climate Change Risk and The Gulf Coast

Organizations and companies are starting to think about the impact of climate change and extreme weather events.  This is especially true in the Gulf Coast area.  A good example of the current thinking on preparing for climate change is a report from power utility Entergy and Swiss Re.  Entergy, which owns the second largest group of nuclear reactors in the United States, is thinking in strategic terms about the impacts of climate change.  Some of this thinking is basic - - replacing wooden transmission poles with steel ones and elevating control systems on concrete stilts at vulnerable substations.

It sounds basic, but the efforts will be enormous.  The Swiss Re study estimated that there will be $350 billion in losses along the Gulf Coast by 2030 due to rising seas and sinking coastline.  The 2010 study identified $120 billion in potential investments, from stronger building codes to wetland restoration. 

Most of the billions will come from government and developers.  This costly infrastructure work will require creative engineers and efficient contractors.  Too often the public takes for granted the shared infrastructure that shapes and protects our lives.  Climate change will change our relationship with the basic supporting infrastructure that we rely on daily.  Our shared infrastructure will cease being conveniently obscure and in the background as weather becomes more extreme and uncertain.  Our infrastructure may seem to have only indirect benefits, but with increasing flood potential and power outages, our appreciation for our infrastructure will be viewed more directly in a shared context.

Climate change and extreme weather may put the "we" back into our shared infrastructure resources and investments.

(This is another good presentation from Swiss Re - - note the "adaptation cost curve.")