The Infrastructure and Energy Sector at the Inter-American Development Bank (IDB) recently hosted a joint workshop on resilient infrastructure with the Organization for Economic Co-operation and Development (OECD). The workshop emphasized the urgent need for resilient infrastructure due to the escalating impacts of climate change. This blog aims to summarize the key points discussed during the workshop and highlight the importance of investing in resilient infrastructure to mitigate the adverse effects of climate change.
The Impact of Climate Change on Infrastructure and Economic Consequences
Due to climate change, the frequency and severity of extreme weather events are on the rise, causing significant disruptions to essential infrastructure services such as water, sanitation, electricity, and transportation. Recent examples include the severe drought in Montevideo, Uruguay, and Hurricane Otis in Acapulco, Mexico. These disruptions have profound economic and social impacts, leading to the loss of lives and livelihoods.
For instance, the severity of the negative impacts of storms on economic growth generally diminishes as the intensity of the storms decreases. However, this pattern is not observed in the Latin America and the Caribbean (LAC) region, where even less intense storms can have significant economic impacts. Research conducted by the IDB show that storms considerably impact GDP per capita growth in the LAC region. This highlights the unique vulnerabilities of the region and the urgent need for resilient infrastructure to mitigate these impacts.
The Need for Resilient Infrastructure
In addition to impacting economic growth, the effects of climate change also directly affect the provision of infrastructure services. A substantial portion of the asset destruction caused by disasters is borne by public services infrastructure, including the energy, water and sanitation, and transport sectors. This is concerning due to asset damage and because such destructions can lead to service interruptions, resulting in even higher social and economic losses.
Moreover, on top of extreme weather events, the effects of climate change, such as increased temperatures or prolonged droughts, are changing the operational functioning conditions in which operators provide infrastructure services, often increasing their costs. For instance, two-thirds of water utilities in Latin America and the Caribbean have experienced increased on expenditures on water treatment chemicals due to climate change.
Climate change also influences the demand for infrastructure services. For instance, higher temperatures increase the need for water and cooling. Dealing with droughts often requires a stronger reliance on energy-intensive processes like groundwater extraction and desalinization plants. Emission-reduction policies, such as promoting electric mobility, can also increase demand for electricity.
This dual impact on both the supply and demand underscores the need for resilient infrastructure that can adapt to changing conditions and continue to provide essential services.
Knowledge Gaps and Research Needs
One of the significant knowledge gaps is the need for comprehensive data on the costs associated with building resilient infrastructure, and the costs of not investing in adaptation measures. This data is crucial for planning and investment decisions. For instance, while capital expenditure costs might be higher in the short term, investing in resilient infrastructure might reduce reconstruction costs after an extreme weather event.
Additionally, more research is needed to determine which types of infrastructure should be built in specific locations and under what standards. Understanding the local context and vulnerabilities is essential to tailoring infrastructure solutions effectively.
There is a pressing need to develop and disseminate standards and best practices for resilient infrastructure to ensure that infrastructure projects are designed and implemented to withstand the impacts of climate change.
Research is also needed to make essential services like water, sanitation, electricity, and transportation more resilient to extreme weather events. Identifying innovative solutions and technologies to enhance service resilience is necessary, particularly by leveraging nature-based solutions.
In conclusion, investing in resilient infrastructure is vital to mitigate the impacts of climate change and ensure sustainable development. Attracting private sector investment is key to achieving these objectives. Addressing existing knowledge gaps through further research and data collection is also necessary to strengthen these efforts. Continued collaboration among different sectors and stakeholders is essential to build resilient infrastructure that can withstand the challenges posed by climate change.
You can view the recap of the webinar by clicking here.
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