Infrastructure Under Siege: The Climate Challenge in 2024
The dire state of U.S. infrastructure has ignited concern among policymakers and industry leaders alike. In recent years, climate change has emerged as a significant factor jeopardizing the integrity of essential services. Historic weather events underscore the fragility of systems once believed to be resilient. In 2023, Fort Lauderdale/Hollywood International Airport experienced unprecedented rainfall, transforming runways into rivers. Similarly, last summer, extreme heat in New York City caused a bridge over the Harlem River to become wedged open due to metal expansion.
The Broad Impact of Climate on Infrastructure
The American Society of Civil Engineers (ASCE) has provided a troubling assessment through its latest infrastructure report card, awarding a mere “C” grade to U.S. infrastructure as a whole. The report highlights that climate-related risks are ubiquitous, affecting every category of infrastructure, including transportation, power, and telecommunications. Tom Smith, ASCE’s executive director, emphasizes that infrastructure designed decades ago is ill-equipped to handle the changing climate. “We continue to see more extreme weather events,” he affirms. “Our infrastructure, many times, was not designed for these types of activities.”
For the sectors affected, the implications are alarming. A recent analysis from climate risk analytics firm First Street reveals that 19% of power infrastructure, 17% of telecommunications, and 12% of airports face significant risks from flooding, high winds, or wildfires. As these risks multiply, investors are beginning to reassess the viability of their assets within increasingly vulnerable landscapes.
Navigating Investment Challenges
Sarah Kapnick, the global head of climate advisory at JPMorgan Chase and former chief scientist at the National Oceanic and Atmospheric Administration, reports rising inquiries from clients regarding climate considerations in their infrastructure investments. “How should I change and invest in my infrastructure?” has become a common question, as stakeholders seek to understand the evolving risks and opportunities surrounding their portfolios.
The urgency for climate-resilient infrastructure is clear, yet significant barriers exist. ASCE estimates a staggering $3.7 trillion funding gap over the next decade necessary to bring U.S. infrastructure to an acceptable condition. Cuts made during the Trump administration, including the termination of nearly $1 billion allocated for the Building Resilient Infrastructure and Communities program, further exacerbate the situation. This program was specifically designed to mitigate damage from natural disasters, leaving many systems more exposed than ever.
As the infrastructure landscape continues to shift, the challenge of securing accurate climate data and analysis becomes paramount. Kapnick notes that the fundamental science informing policy and investment decisions is under threat amid significant budget cuts to vital federal agencies like NOAA and FEMA. “There’s going to be this adjustment period,” she explains, “as people figure out where they’re going to get the information they need.”
With climate change serving as a driver of risk across all sectors, decision-makers must not only adapt but also act decisively. The evolving landscape demands that investments focus on innovative, data-driven solutions that prioritize resilience and sustainability. The road ahead may be fraught with challenges, but the potential for transformative change lies in embracing a proactive approach to infrastructure development.