How the P&C industry responded to Canada’s National Adaptation Strategy

Canada announced today a total of $1.6 billion in new federal funding to help communities adapt to climate change by building infrastructure more resilient to natural disasters.

The investment is part of the federal government’s new National Adaptation Strategy: Building Resilient Communities and a Strong Economy.

“Funding will help municipalities and townships build public infrastructures of the future, such as roads and bridges, that can withstand flooding, make sure Canadians have access to the information they need to stay safe during wildfires, and enable engagement and work with Indigenous communities on the development of region-specific health initiatives linked to changing climate conditions,” says a federal government release announcing the strategy.

Canada’s property and casualty industry representatives heavily populated two of the five advisory committees that led to the federal government’s strategy. Insurance Bureau of Canada hailed the initiative as “brave” and “ambitious.”

“No other country has proposed such a comprehensive suite of adaptation targets,” IBC said of the strategy’s launch. “The elements proposed in this strategy, especially the use of clear risk-reduction goals and outcome-based targets, are truly world-leading and are critical to both the resilience of our country and to the protection of Canadians…

“The proposed investments in infrastructure in this National Adaptation Strategy will be a welcome down payment on the actions needed to deliver on these targets.”

The National Adaptation Strategy follows two years of engagement with provincial, territorial, and municipal governments, and work done by five advisory committees working on disaster resilience, health and well-being, nature and biodiversity, infrastructure, and the economy and workers. P&C industry representatives were prominent members of the advisory committees focused on disaster resilience and infrastructure.

Investments in disaster resilience announced today focus on preventing wildfire and flood damage. They include:

• up to $284 million for community prevention and wildfire mitigation activities, support for innovation in wildland fire knowledge and research, and establishment of a Centre of Excellence for Wildland Fire Innovation and Resilience;
• up to $164.2 million to ensure all Canadians have access to free, up-to-date, and authoritative flood-hazard maps.

Infrastructure investments include:

• up to $489.1 million to top up the Disaster Mitigation and Adaptation Fund;
• up to $59.5 million to accelerate the use of climate-informed building codes, standards, and guidelines for resilient infrastructures.

The federal government has also earmarked “up to $530 million to expand the Green Municipal Fund to support community-based adaptation initiatives, in collaboration with the Federation of Canadian Municipalities.”

A federal government backgrounder notes “every dollar spent on adaptation measures saves $13–$15, including both direct and indirect economy-wide benefits.” It cites some examples of this return on investment, including:

• “Implementing new flooding and wildfire guidelines and standards for new construction could save Canada an estimated $4.7 billion a year — saving nearly $12 per $1 invested.”
• “Climate-resilient building codes implemented in Canada have an estimated benefit-cost ratio of 12:1, which is equivalent to a 1,100% return on investment.”

The Institute for Catastrophic Loss Reduction noted the investments announced by the government today would go a long way towards preventing insured natural catastrophe losses, which have totalled more than $2 billion annually over the past three years, according to stats provided by the Catastrophe Indices and Quantification Inc.

“Loss and damage from extreme climate events has been doubling in Canada every five to 10 years over the past four decades,” Paul Kovacs, executive director of the Institute for Catastrophic Loss Reduction said. “The National Adaptation Strategy and Federal Adaptation Action Plan are an important step forward to confront this alarming and unsustainable trend. Most losses from flooding, wildfire, severe wind and other climate extremes are preventable through the application of proven scientific findings.”

 

Feature image courtesy of iStock.com/Petmal