Forward-looking resilience investments can significantly reduce long-term public costs
A new report suggests that strengthening public infrastructure to withstand climate impacts could sharply reduce future repair and replacement costs. It’s a finding with important implications for long-term public finances.
Research released by the Canadian Climate Institute finds that Canada’s roads, bridges, water systems and other public assets are increasingly exposed to damage from extreme heat and heavier rainfall. Without proactive upgrades, governments face mounting repair bills as climate risks intensify over time.
The analysis estimates that investing about $3 billion annually to climate-proof infrastructure could prevent the majority of projected damage. Over the long term, that spending could translate into avoided costs of $5 billion to $10 billion each year through the end of the century.
The report, titled Prepare or Repair: How climate-proofing public infrastructure pays off, focuses primarily on heat and rainfall impacts. It notes that additional risks — such as wildfires, coastal erosion, permafrost thaw and flooding — were not fully quantified, nor were broader economic consequences like service disruptions, business losses or property damage.
Even with early adaptation, the study projects that combined spending on resilience measures and unavoidable climate damage will still rise by roughly $5 billion per year on average. Municipal governments are expected to bear a large share of these costs, highlighting a mismatch between who pays and who benefits from resilient infrastructure.
To address this gap, the report calls for expanded adaptation funding, updated municipal financing tools, better climate risk data, modernized building codes, and mandatory consideration of future climate conditions in public infrastructure decisions. Targeted support for vulnerable communities and critical systems is also emphasized.
“Canadians are caught in a perfect storm of aging infrastructure and rising climate risks that are already disrupting our daily lives. This isn't a tomorrow problem; it's happening now. The research leaves no doubt: adapting public infrastructure will save Canadians billions of dollars down the road, limiting the cascading impacts of extreme weather, and building a stronger, safer, more prosperous country,” said Rick Smith, President of the Canadian Climate Institute.
The report’s conclusion is that delaying resilience investments increases future liabilities, while early action can help protect public balance sheets from escalating climate-related costs.
