Ontario’s public infrastructure vulnerable to climate hazards: FAO
A report by the Financial Accountability Office of Ontario (FAO) projects budgetary impacts on public infrastructure in Ontario.
The Financial Accountability Office of Ontario (FAO) recently released its final report in the Costing Climate Change Impacts to Public Infrastructure (CIPI) series which projects the budgetary impacts of extreme rainfall, extreme heat and freeze-thaw cycles on public infrastructure in Ontario.
The report noted that climate-related infrastructure costs will affect provincial and municipal budgets in the long run with the impacts dependent on the extent of climate change as well as the asset management strategies undertaken.
Climate-related costs to the Province’s portion of Ontario’s infrastructure portfolio would add 2.8 to 3.4 percentage points to the Province’s net debt-to-GDP ratio by the end of the century, in a medium emissions scenario. These budget impacts are not likely to significantly influence the Province’s fiscal sustainability, according to the report.
The report noted that the impact of climate-related infrastructure costs on municipal budgets is projected to be four times larger than for the Province, since Ontario’s municipalities manage more than 70 per cent of the portfolio in scope, and their portfolio is more susceptible to these climate hazards.