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Climate Risk

Climate Risk

Climate Risk

refinq

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Aug 20, 2025

Evaluating How Climate Affects Infrastructure and Public Assets

Climate change is placing unprecedented pressure on infrastructure and public assets, from roads and bridges to hospitals, schools, and utilities. Rising sea levels, extreme weather events, and higher energy demands are already causing costly damage, service disruptions, and safety concerns. This article explores how climate change affects infrastructure through flooding, storms, and heat stress, and highlights key tools—such as resilience metrics, OECD appraisal guidelines, and climate impact assessment platforms—for evaluating vulnerabilities. It also outlines actionable strategies for building climate-resilient infrastructure, including nature-based solutions, retrofitting existing assets, and integrating climate data into early-stage planning. By adopting proactive adaptation measures, governments and businesses can protect critical infrastructure, reduce financial losses, and strengthen community resilience in a changing climate.

Flooded urban road with damaged infrastructure highlighting climate change impact on public assets
Flooded urban road with damaged infrastructure highlighting climate change impact on public assets
Evaluating How Climate Affects Infrastructure and Public Assets

Climate change is no longer a distant concern—it’s an ongoing reality reshaping our world. Its impacts are increasingly visible in the form of extreme weather events, rising sea levels, temperature extremes, and more frequent flooding. As a result, infrastructure and public assets—critical components of society—are at greater risk than ever.

Understanding how climate affects infrastructure and public assets is crucial for governments, businesses, and communities. In this article, we will examine the various ways climate change impacts infrastructure, explore how organizations are evaluating these risks, and discuss actionable strategies for building climate-resilient infrastructure.

Why Understanding Climate Impact on Infrastructure is Essential

Infrastructure—ranging from roads and bridges to water systems and electricity grids—is the backbone of modern society. Public assets, including schools, hospitals, and government buildings, serve as vital resources for communities. When climate-related risks affect these assets, the consequences can be severe, causing financial loss, service disruption, and harm to public safety.

Key reasons to evaluate how climate affects infrastructure include:

  • Financial Stability: Infrastructure damage can result in significant repair costs, insurance claims, and delayed economic growth.

  • Social Well-being: Infrastructure failure can affect transportation, healthcare, education, and basic services, all of which are essential to societal functioning.

  • Adaptation: Understanding how climate affects infrastructure allows for better planning and adaptation to minimize disruptions from climate change.

How Climate Affects Infrastructure and Public Assets
1. Physical Damage from Extreme Weather

Climate change leads to more frequent and intense extreme weather events, such as hurricanes, floods, droughts, and heatwaves. These events directly damage infrastructure by:

  • Flooding: Flooding can erode roads, damage buildings, and disrupt transport systems.

  • Heatwaves: Prolonged heat can damage roads, railways, and energy grids.

  • Storms: High winds and heavy rainfall can destroy buildings, bridges, and utilities.

Public assets, such as hospitals and schools, can also be impacted by physical damage. Buildings may not have been designed to withstand more extreme weather conditions, leading to repairs or even complete rebuilding.

2. Rising Sea Levels and Coastal Erosion

Coastal infrastructure is particularly vulnerable to the effects of climate change, including rising sea levels and increased storm surges. Ports, airports, and cities located near coasts are at significant risk of inundation. The damage can be catastrophic, requiring costly adaptations, such as seawalls or relocation of infrastructure.

Example:
A coastal city might experience a 10% increase in flooding frequency due to rising sea levels, which could severely affect its transportation and housing sectors.

3. Increased Energy Demands

As temperatures rise, the demand for cooling systems—such as air conditioners—skyrockets. This increases stress on electricity grids and energy infrastructure. Extended heatwaves may also affect power generation, as thermal power plants become less efficient in high temperatures.

Example:
A city facing more intense heatwaves will likely see an increase in power consumption, which could strain power distribution networks, leading to blackouts.

4. Impact on Transportation Networks

Transportation infrastructure, including roads, bridges, and railways, is highly sensitive to climate-induced changes in temperature and precipitation. For example:

  • Heat stress on rail tracks can cause them to buckle.

  • Heavy rains can lead to washouts, landslides, or road closures.

These disruptions not only delay movement but can also lead to increased costs in repairs and maintenance.

Tools and Methods for Assessing Climate Impact on Infrastructure

Several tools and frameworks are now available to assess the risks that climate change poses to infrastructure and public assets. These tools help stakeholders evaluate vulnerabilities, identify critical assets, and plan for climate resilience.

1. Systemic Resilience Metrics

The Global Infrastructure Facility (GIF) developed a forward-looking approach that includes systemic resilience metrics. These metrics assess the ability of infrastructure systems to absorb climate shocks, adapt, and continue functioning. By using resilience metrics, planners can better understand the cascading impacts of climate events on infrastructure and public services.

This approach is particularly useful for assessing multi-layered, interconnected infrastructure systems and identifying weaknesses before crises emerge.

2. Infrastructure Resilience in Project Appraisal

Integrating climate risks into infrastructure project appraisals is becoming increasingly important. The OECD’s guidelines for project appraisals now include climate resilience as a critical factor in evaluating infrastructure investments. These guidelines advocate for conducting risk assessments and incorporating climate change scenarios into the design, budgeting, and long-term planning of infrastructure projects.

Example:
A new highway project could use the OECD framework to assess future flood risks based on projected rainfall patterns, ensuring that the infrastructure is resilient to changing weather patterns.

3. Climate Impact Assessment Tools

A number of platforms and resources provide methodologies to assess how climate impacts infrastructure. For example, EDHEC’s Climate Impact Tool allows asset managers and governments to evaluate the effects of climate change on infrastructure investments, guiding decision-making in terms of valuation and future risk.

Example:
Using the tool, a public utility company might assess the long-term viability of a dam, considering projections for temperature increases, drought risks, and changing water availability.

Strategies for Making Infrastructure Climate-Resilient

The need to adapt infrastructure to the challenges of climate change is evident. However, building resilience requires a multi-faceted approach that combines technology, planning, and investments. Here are some strategies for creating climate-resilient infrastructure:

1. Incorporate Climate Risks Early in the Planning Process

One of the most effective strategies is integrating climate risks at the very beginning of the infrastructure development process. By considering future climate scenarios and risks, infrastructure projects can be designed with resilience in mind.

Tip:
Work with engineers and climate scientists to incorporate data on temperature trends, extreme weather events, and sea-level rise when designing new buildings or roads.

2. Use Nature-Based Solutions

Nature-based solutions such as wetlands, forests, and urban green spaces can help buffer infrastructure from climate impacts. For example, planting trees to provide shade in urban areas can mitigate the urban heat island effect, while coastal wetlands can absorb storm surges and protect coastal infrastructure.

3. Retrofit and Upgrade Existing Infrastructure

Many cities have aging infrastructure that was not designed to withstand modern climate extremes. Retrofitting these assets with climate-resilient features is essential for reducing risk. For example, elevating flood-prone buildings or installing heat-resistant materials in roads can help safeguard public assets.

4. Monitor and Update Adaptation Plans

Climate change is not static, so it’s crucial to regularly update infrastructure resilience strategies. Monitoring climate trends, collecting real-time data, and revising plans based on new information ensures that infrastructure remains resilient in the face of evolving risks.

Conclusion

The impacts of climate change on infrastructure and public assets are far-reaching and profound. However, by evaluating risks through advanced forecasting methods and adopting proactive strategies, governments, businesses, and communities can safeguard critical assets from the damaging effects of climate change.

By incorporating climate resilience into infrastructure projects, retrofitting existing assets, and investing in nature-based solutions, society can ensure that infrastructure remains functional, safe, and sustainable in the face of future climate challenges.

Call to Action

Don’t wait until climate change disrupts your infrastructure.
Future-proof your public assets with expert climate risk assessments and resilience planning.
Contact us today to get started on your climate adaptation journey.

Related Articles

What is refinq and how does it support nature and climate risk management?

refinq is a Software as a Service (SaaS) platform that translates complex environmental data into nature and climate risk profiles, and provides recommendations for action that can be deployed by corporates. We assist businesses in assessing and managing nature and climate risks across their assets, ensuring compliance with frameworks like TNFD, CSRD, and ESRS, reducing business operating costs, and future-proofing supply chains. refinq’s tool expands the reach and effectiveness of corporate nature teams.

How does GaiaGuide enhance refinq's Nature Intelligence Hub?

GaiaGuide is an AI-powered tool within refinq's platform that provides tailored, location-specific nature-positive actions. It goes beyond identifying risks by offering actionable strategies to mitigate them, helping businesses leverage their natural capital for operational resilience.

What types of climate and nature risks does refinq assess?

refinq evaluates a range of climate hazards, including temperature changes, floods, and wind patterns, alongside nature risks like species extinction, land degradation, and biodiversity intactness (and many more). These assessments are location-specific and aligned with global regulatory frameworks (e.g. ESRS, TNFD).

Is refinq's data compliant with international reporting standards?

Yes, refinq's assessments align with key frameworks such as the Taskforce on Nature-related Financial Disclosures (TNFD), Corporate Sustainability Reporting Standard (CSRD), and European Sustainability Reporting Standards (ESRS), ensuring compliance with international regulations.

How granular is the data provided by refinq?

refinq offers hyper-granular data, creating nature assessments for any company location globally with a granularity of up to 25 meters. This allows for precise risk evaluation and management at the asset level.

Can refinq forecast environmental impacts into the future?

Yes, refinq allows for forecasting environmental impacts based on four climate scenarios up to the year 2100. This forward-looking approach aids in long-term strategic planning and risk mitigation.

How does refinq translate environmental risks into financial terms?

refinq provides financial damage estimates for both climate and nature risks, enabling businesses to quantify potential financial impacts and make informed investment and operational decisions.

Is refinq suitable for global operations outside the EU?

Absolutely. refinq's assessments follow international frameworks like TNFD and our data souces have truly global reach.

What industries can benefit from using refinq?

refinq serves a diverse range of industries, including utilities, manufacturing, financial institutions, and more. Any organisation seeking to understand and manage its nature-related risks can benefit from refinq's platform.

How does refinq’s transition risk product help boards and risk committees?

We map policy, market, technology and reputational risks based on up-to-date regulatory information concerning focal jurisdictions and business activities. This makes it possible for boards and committees to make decisions based on the latest and most credible information.

Precise

Real-time

Integrated

Credible

Heading | Target | 1

title:What

Heading | Target | 2

[Target word or phrase]

See your climate & nature risks in action

In one session, we’ll show you how refinq turns your asset locations into CFO-ready insights – linking climate and biodiversity data to strategic impact.

Precise

Real-time

Integrated

Credible

Heading | Target | 1

title:What

Heading | Target | 2

[Target word or phrase]

See your climate & nature risks in action

In one session, we’ll show you how refinq turns your asset locations into CFO-ready insights – linking climate and biodiversity data to strategic impact.

Precise

Real-time

Integrated

Credible

Heading | Target | 1

title:What

Heading | Target | 2

[Target word or phrase]

See your climate & nature risks in action

In one session, we’ll show you how refinq turns your asset locations into CFO-ready insights – linking climate and biodiversity data to strategic impact.