The Cost of Doing Nothing

National Round Table on the Environment and Energy estimated that climate change costs for Canada could escalate from roughly $5 billion per year in 2020 to between $21 and $43 billion per year by the 2050s (NRTEE, 2011). The magnitude of costs depends upon a combination of two factors: global emissions growth as well as the economic growth and population growth in Canada during that time. The modelling shows there is a risk that these costs could be significantly higher than those stated. In the 2050s, where climate change costs are estimated at $21 billion per year in the low climate change/slow growth scenario, there is a 5% chance that the costs could actually be at least $44 billion per year. In the high climate change/rapid growth scenario, climate-related costs are estimated that $43 billion per year by the 2050s, but there is a 5% chance that costs could be at least $91 billion (NRTEE, 2011)

The report states that from 2009 through 2015, the federal government spent more on recovering from large-scale natural disasters than in the previous 39 years combined through Disaster Financial Assistance Arrangements (Figure 5) (Auditor General, 2016). The report goes on to highlight that disaster mitigation measures (climate change adaptation) can be very cost effective for government and society. For example, the estimated $63 million invested in disaster mitigation measures to build the Manitoba Red River Floodway in 1960 saved $8 billion by 2008 in avoided recovery costs. In addition, such foresight can reduce disruption of local economies and communities.