{"id":37004,"date":"2023-07-14T17:49:35","date_gmt":"2023-07-14T16:49:35","guid":{"rendered":"https:\/\/newsblogsnew.ihbc.org.uk\/?p=37004"},"modified":"2023-07-14T17:49:35","modified_gmt":"2023-07-14T16:49:35","slug":"ihbcs-finance-economics-signpost-financing-climate-adaptation-and-deciding-what-to-let-go-from-harvard-magazine","status":"publish","type":"post","link":"https:\/\/newsblogs.ihbc.org.uk\/?p=37004","title":{"rendered":"IHBC\u2019s \u2018Finance & Economics\u2019 signpost: \u2018Financing Climate Adaptation\u2014and Deciding What to Let Go\u2019, from Harvard Magazine"},"content":{"rendered":"

\"\"An article in Harvard Magazine explores how financial markets have already begun to price in the probability of climate disasters, making future adaptation efforts more expensive and driving inequity.<\/h3>\n

image: for illustration<\/em><\/h6>\n

<\/p>\n

\u2026 \u2018This is what keeps me up at night – people\u2019s wealth caught up in these properties\u2026<\/span><\/em><\/h2>\n

Jonathan Shaw for Harvard Magazine<\/em> writes:<\/p>\n

\u2026 financial markets have already begun to price in the probability of such disasters, and that will make future adaptation efforts more expensive and drive inequity, said Jesse M. Keenan in a May 10 presentation hosted by the Graduate School of Design (GSD)\u2026.<\/p>\n

KEENAN\u2019S TALK,<\/span>\u00a0benignly titled \u201cFinancing Climate Adaptation,\u201d might more aptly have been called, he said, \u201cWake Up Massachusetts, You\u2019re Already Paying for Climate Change\u201d\u2014an exhortation that in fact applies \u201call across the United States.\u201d He cited \u201crobust empirical evidence\u201d that markets are responding to assessments of climate-change risk, and warned that commercial and residential property owners will shoulder the economic burden of higher financing costs.<\/p>\n

Cities and towns typically rely on future tax revenues to fund capital projects\u2014whether for construction of schools or seawalls\u2014by issuing bonds to long-term investors. A typical term for a municipal bond issue might be 30 years, so investors are already assessing the risk to about 2050…<\/p>\n

Recent legislative measures such as the Bipartisan Infrastructure Act, and more recently, the Inflation Reduction Act, Keenan explained, focus on decarbonizing the economy by incentivizing\u00a0mitigation<\/em>.<\/p>\n

\u201cThe Rich Are Going to Adapt\u201d<\/h2>\n

INCENTIVES<\/span>\u00a0for\u00a0adaptation<\/em> do exist, he said, \u201cbut they originate in the private sector, not necessarily in the public sector.\u201d ….<\/p>\n

\u201cThis is what keeps me up at night,\u201d he continued, \u201cin terms of the property-tax base, people\u2019s wealth caught up in these properties, and what this means culturally, institutionally, financially, and politically\u2014on so many levels.\u201d….<\/p>\n

Depreciating Properties at Risk<\/h2>\n

…..A 2019 study found that coastal properties in a zone at risk of six feet of SLR sold at a 7 percent discount relative to other similarly situated U.S. properties. Multifamily assets, typically purchased by investors who are more savvy to exposure risk than typical homeowners, were discounted even more heavily. New construction is also more constrained in areas where residents understand climate change risks….<\/p>\n

\u201cWhat To Let Go\u201d<\/h2>\n

WHAT SMALLER COMMUNITIES<\/span> can and should do, he said, is align their capital plans with long-term spatial planning, which will involve difficult conversations….<\/p>\n

Read more….<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

An article in Harvard Magazine explores how financial markets have already begun to price in the probability of climate disasters, making future adaptation efforts more expensive and driving inequity. image: for illustration<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-37004","post","type-post","status-publish","format-standard","hentry","category-ihbc-newsblog"],"_links":{"self":[{"href":"https:\/\/newsblogs.ihbc.org.uk\/index.php?rest_route=\/wp\/v2\/posts\/37004","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsblogs.ihbc.org.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsblogs.ihbc.org.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsblogs.ihbc.org.uk\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/newsblogs.ihbc.org.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=37004"}],"version-history":[{"count":1,"href":"https:\/\/newsblogs.ihbc.org.uk\/index.php?rest_route=\/wp\/v2\/posts\/37004\/revisions"}],"predecessor-version":[{"id":37005,"href":"https:\/\/newsblogs.ihbc.org.uk\/index.php?rest_route=\/wp\/v2\/posts\/37004\/revisions\/37005"}],"wp:attachment":[{"href":"https:\/\/newsblogs.ihbc.org.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=37004"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsblogs.ihbc.org.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=37004"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsblogs.ihbc.org.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=37004"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}