Road to Resilience — Managing and Financing Extreme Weather Risks in the Energy Sector
"Increasing the resilience of energy infrastructure to extreme weather events is not an option. It is a must." This is the energy sector’s urgent call for action as emerging trends and issues threaten its future.
“The Road to Resilience — Managing and Financing Extreme Weather Risks,” prepared by the World Energy Council, Marsh & McLennan Companies, and Swiss Re Corporate Solutions, highlights the crisis that the global economy will soon face if energy systems are not transformed to handle extreme weather events.
The occurrence of extreme weather events has increased four-fold over the last 40 years. As the frequency, severity, and exposure of energy systems to extreme weather events rapidly increases, it presents a substantial strain on energy supply and demand, production, revenue streams, and overall system efficacy. Adapting and protecting global energy assets requires public- and private-sector investment over the next several years.
However, to date, regulations and the lack of clarity around resiliency requirements have served as roadblocks to investment efforts.
In light of the emerging crisis, “The Road to Resilience — Managing and Financing Extreme Weather Risks,” calls for the energy, finance, and policy communities to collaborate and take action toward providing effective energy resilience solutions that will ultimately lead to a secure and sustainable energy system for the future.