New York is taking climate change seriously
NY cites climate change as a risk in Sandy’s wake, SMH, March 27 2013 New York is listing climate change as a risk for bondholders after Hurricane Sandy caused more than $US40 billion ($38 billion) in damage in the state and Governor Andrew Cuomo said better preparations are needed.
The state may be the first US state to inform investors of the danger posed by rising sea levels, flooding and erosion tied to climate change, said Rich Azzopardi, a Cuomo spokesman. The citation first appeared in budget documents in January and has since been included among fiscal risks mentioned in bond offering statements, Azzopardi said.
Sandy caused the worst flooding in the more than 100-year history of the New York City subway system, which is run by the state, and devastated coastal areas. The October hurricane knocked out power to more than 2 million residents and followed two 2011 tropical storms that caused severe flooding upstate.
“The extreme weather events of the last two years highlighted real and potential costs from extreme weather events,” Azzopardi said. “The state determined that the effects of climate change presented economic and financial risks.” Other stated risks include federal budget cuts and unsettled labor negotiations.
Be prepared
Cuomo, a 55-year-old Democrat, said after Sandy that the state needs to be better prepared for extreme weather. He has proposed a $US400 million program to buy waterfront homes to reduce the amount of property exposed to potential storm damage.
Offering statements on risk say investors should note the potential costs of storm-related preparation and rebuilding.
“Significant long-term planning and investment by the federal government, state and municipalities may be needed to adapt existing infrastructure to the risks posed by climate change,” the risk statement says.
Businesses have been taking climate projections into account when assessing risk for at least a decade and it’s “astonishing” that more public entities haven’t done so, said Steven Cohen, executive director at Columbia University’s Earth Institute in New York.
Prudent planning
“These are the kinds of things that prudent investors pay attention to and prudent governments set aside funds for,” said Cohen, a former US Environmental Protection Agency official. “This needs to be a part of your financial planning.”
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