Managing and Financing Extreme Weather Risks to Energy Infrastructure
Increasing the resilience of energy infrastructure to extreme weather events is not an option – it is a must.
This is an urgent call for action by the energy sector, as emerging trends and issues threaten its future outlook.
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 more than 4 times 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 the energy supply and demand, production, revenue streams, and overall system efficacy. To adapt and protect global energy assets requires a significant investment over the next several years, only possible through public and private sector involvement.
However, to date, regulations and the lack of clarity around resiliency requirements have served as roadblocks for investment efforts.
In light of this emerging crisis, this report calls for the energy, finance and policy communities to collaborate and take action towards providing effective energy resilience solutions that will ultimately lead to a secure and sustainable energy system for the future.