Climate change has been linked to extreme weather events this century. And for the US at least, they are proving expensive to respond to and clean up.
Last year the US experienced 20 severe natural disasters that inflicted damage costing more than $145 billion, according to the US National Oceanic and Atmospheric Administration (NOAA).
Temperatures in 2021 were slightly cooler than the previous two years, but that’s not much comfort. Global temperatures have been setting new records for the last seven years, owing to higher greenhouse gas emissions.
Wildfires
Dry conditions and winds set off wildfires in the the western US that caused damage costing more than $10 billion.
Adding to the tab was a freakish Texas winter storm in February of 2021 ($24 billion) and Hurricane Ida ($75 billion).
Takeway
An estimated 729,699 retail, office, and multi-unit residential properties could face flood damage in coming decades.
The annual tab to repair or replace damaged buildings could grow by roughly 25% from $13.5 billion in 2022 to over $16.9 billion by 2052 due to climate change, according to a recent report by global engineering firm First Street Foundation and consulting firm Arup.
Extreme weather events have been increasing steadily since 1980 in the US. For global investors, climate change and associated extreme weather events have evolved into a more significant economic risk consideration in my opinion.
Photo Credit: Pete G via Flickr Creative Commons
Disclosure
This piece is provided as educational information only and is not intended to provide investment or other advice. This material is not to be construed as a recommendation or solicitation to buy or sell any security, financial product, instrument, or to participate in any particular trading strategy.
