(3) consider how new infrastructure may be affected by climate change and implement corresponding adaptation measures as required.
(4) consider how operation protocols will be modified.
(5) consider how their supply chains will be affected.
(6) consider whether their personnel have the appropriate skills and necessary
working discipline to adapt.
10.3.6 Economic Regulators
In the adaptation context the economic regulator should primarily try to safeguard
the interests of both current and future consumers by improving long-term resilience
to climate change, as well as considering efficiency and value for money, which
might be short-term objectives only. As a group, economic regulators can improve
the linkages between sectors so as to plan for better adaptation and mitigate
interdependency risks.
Economic regulators already have mandates which enable them to facilitate
adaptation action, for example, the protection of short and long-term customer
interest and security of supply. Instruments such as standards, regular pricing
controls, incentives and penalties are available to satisfy these mandates and propose
incentives for adaptation.
The total cost is a combination of upfront costs and periodic expenses. In order to
avoid creating problems for future generations, through targeting for the minimum
possible cost bills today, implies a careful and balanced assessment of the impacts of
climate change, when making risk based decisions.
10.3.7 Insurers and Re-insurers
When disasters occur, the joke on insurance companies is whether there is a clause in
fine print, somewhere in the policy. Nevertheless, the insurance sector does have an
important interest in timely adapting their policies to climate change and infrastructure. If insured infrastructure services are interrupted, or assets damaged due to
climate change, this could have significant cost implications to the insurance industry, premiums will be affected in the future.
(1) Insurers can help clients by working together to reduce the infrastructure’s
current and future vulnerability to weather events.
(2) Insurers can invest in, and develop, climate risk models using context specific
climate data, such as expected rainfall, wind speeds and gust levels. Where and
when appropriate, they can share the information with owners, operators and
investors, to promote further planning and action.
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293
(4) consider how operation protocols will be modified.
(5) consider how their supply chains will be affected.
(6) consider whether their personnel have the appropriate skills and necessary
working discipline to adapt.
10.3.6 Economic Regulators
In the adaptation context the economic regulator should primarily try to safeguard
the interests of both current and future consumers by improving long-term resilience
to climate change, as well as considering efficiency and value for money, which
might be short-term objectives only. As a group, economic regulators can improve
the linkages between sectors so as to plan for better adaptation and mitigate
interdependency risks.
Economic regulators already have mandates which enable them to facilitate
adaptation action, for example, the protection of short and long-term customer
interest and security of supply. Instruments such as standards, regular pricing
controls, incentives and penalties are available to satisfy these mandates and propose
incentives for adaptation.
The total cost is a combination of upfront costs and periodic expenses. In order to
avoid creating problems for future generations, through targeting for the minimum
possible cost bills today, implies a careful and balanced assessment of the impacts of
climate change, when making risk based decisions.
10.3.7 Insurers and Re-insurers
When disasters occur, the joke on insurance companies is whether there is a clause in
fine print, somewhere in the policy. Nevertheless, the insurance sector does have an
important interest in timely adapting their policies to climate change and infrastructure. If insured infrastructure services are interrupted, or assets damaged due to
climate change, this could have significant cost implications to the insurance industry, premiums will be affected in the future.
(1) Insurers can help clients by working together to reduce the infrastructure’s
current and future vulnerability to weather events.
(2) Insurers can invest in, and develop, climate risk models using context specific
climate data, such as expected rainfall, wind speeds and gust levels. Where and
when appropriate, they can share the information with owners, operators and
investors, to promote further planning and action.
10.3 Preparing Infrastructure for Climate Change
293