Rising sea levels and the increased frequency of wild fires and extreme weather events could cost the Californian economy billions of dollars a year and put $2.5tr (£1.7tr) of real estate assets at risk, according to a major new report from the University of California, Berkeley (UCB).
The study looked at three separate global warming scenarios and found that the insurance and real estate sectors alone could face annual bills of between $300m and $3.9bn a year as they attempt to cope with the impacts of climate change.
Report co-author, UCB adjunct professor David Roland-Holst, said the findings highlighted the economic case for taking earlier action to cut carbon emissions and adapt to the unavoidable effects of climate change.
"Our report makes clear that the most expensive thing we can do about climate change is nothing," he said. "As we learned in New Orleans, turning your back on the threat of natural disaster doesn’t make it go away."
The report found that alongside insurance and real estate, many other sectors are at risk of multibillion-dollar bills as a result of climate change.
For example, it is estimated that $21bn of energy sector assets, $500bn of transport sector assets, $113bn of agricultural assets, $5bn of water industry assets and $98bn of tourism assets are at risk of climate-induced damage.
The report, which was commissioned from non-profit organisation Next 10, concludes that urgent action is required by both the public and private sector to enhance climate change risk assessment and better incentives investments in both low-carbon and climate adaptation measures.
Roland-Holst insisted that such adaptation measures presented a significant economic opportunity for California. "We also know from history that decisive policy can turn adversity into economic renewal," he said. "WPA, the Marshall Plan, the space race, and even Homeland Security transformed threats into employment and growth. We can ignore change that is already happening or we can turn the threat of climate damage into a dynamic opportunity for change, renewal, and growth."
He added that with the effects of rising temperatures already being felt, all businesses and governments need to "evaluate their economic vulnerability and begin adaptation now".
Head of the UN's Intergovernmental Panel on Climate Change insists even best-case scenarios mean increased incidence of floods, droughts and heatwaves 10 Mar 2009
New report claims there is a strong economic case for including $400bn of green spending in governments' stimulus plans 11 Feb 2009
New satellite data shows annual sea level rises are 50 per cent higher than last century, as research suggests one in 10 people could be at risk of coastal flooding by 2100 10 Mar 2009
Report claims costs arising from pollution and mining deaths are equal to seven per cent of China's GDP 28 Oct 2008
Engineering giant claims almost a third of its venture capital investment portfolio is focused on clean tech 10 Jul 2009
Energy giant shells out undisclosed sum for a pipeline of solar photovoltaic projects in the south of France 10 Jul 2009
From magnetic cars to rows over greenwashing, we run down the top stories from the past week 10 Jul 2009
Bill Beaver takes the microscope to the backroom deals that will shape the future of the US climate change bill 09 Jul 2009
Whenever a big story breaks about the dire straights in which the natural world finds itself, it always sparks something of a... 07 Jul 2009





