More frequent and severe climate-related events will continue to cost Charlottetown financially and socially if the City and broader community don’t act, says a new report.
“Investing in a Climate Resilient Future: Cost of Doing Nothing,” released yesterday at a meeting of the City’s Environment and Sustainability Committee, is part of the work to develop Charlottetown’s Climate Action Plan. Produced in partnership with ICLEI Canada, the report provides a detailed analysis of the economic and social risks posed by extreme weather, coastal flooding and sea-level rise, heatwaves and other impacts of climate change.
The study says investing in climate adaptation is necessary to save Charlottetown millions of dollars over time by preventing costly and damaging climate-related impacts.
“Climate change is not just an environmental issue – it’s an economic and social imperative,” said Councillor Trevor MacKinnon, Chair of the Environment and Sustainability Committee. “This report reinforces why the City’s work to develop a Climate Action Plan is so important. By acting now, we can not only protect our community and reduce future financial strain, but also create a stronger, safer and more livable Charlottetown for generations to come.”
Key findings of the report include:
• Extreme Weather and Precipitation: Insured losses in PEI from climate-related damages have reached millions of dollars in the last decade, with events like Hurricane Fiona alone causing over $315 million in insured losses in the province and $4.8 million in municipal expenses for Charlottetown.
• Sea Level Rise and Coastal Flooding: By 2050, annual coastal flooding losses on PEI could reach between $5 million and $55 million, directly impacting municipal budgets and local businesses.
• Extreme Heat: Historically, Charlottetown experienced only one day per year exceeding 30°C. Projections indicate this will rise to an average of 14 days annually by 2041-2070 under high-emission scenarios. This increased heat will strain energy resources, public health services, and workforce productivity.
• Health and Workforce Impacts: Heatwaves and air quality deterioration are increasing hospitalizations and reducing worker productivity. PEI’s aging population is particularly vulnerable, with heat-related illnesses and vector-borne diseases on the rise.
• Insurance and Financial Risks: Rising climate-related damages are driving up insurance premiums, shifting financial burdens to businesses, homeowners, and municipal governments. Without action, these costs will continue to escalate.
The report stresses that by focusing on resilience now, Charlottetown can avoid much higher recovery costs in the future, ensuring that essential services and infrastructure continue to function effectively in a rapidly changing climate.
The report will inform Charlottetown’s Climate Action Plan to help the community build resilience to the impacts of climate change and extreme weather, while also reducing our contribution to global climate change through the reduction of greenhouse gas emissions. The Plan is expected to be presented to City Council in the coming months.
The Climate Action Plan aligns with Charlottetown’s strategic direction of strengthening public infrastructure and protecting the environment.