Building a resilient energy gulf coast: executive report

This study presents the first comprehensive analysis of climate risks and adaptation economics along the U.S. Gulf Coast. It develops a consistent fact base that quantifies climate risks in the region and helps inform economically sensible approaches for addressing this risk. It follows the insurance industry's natural catastrophe model approach, which is directly applicable to future climate-sensitive risks: (i) hazard assessment, considering hurricanes, subsidence and sea level rise; (ii) economic assessment of the value at risk from climate change; and (iii) vulnerability assessment showing the correlation between hurricane severity and asset loss. It asserts that a range of attractive measures can address the increase in annual loss between today and 2030 and keep the risk profile of the region constant; and that cost effective measures can translate into broad near-term actions to protect the region.

Swiss Re was a lead contributor to the research in this report and brought natural catastrophe and climate risk assessment knowledge to bear on the challenge of quantifying climate risks. The methodology used in this study was previously devised and tested by a consortium of public and private partners, including Swiss Re, in a project on the Economics of Climate Adaptation.