Drastic weather events could cost Canadians billions by 2050

Droughts, floods, and storms could result cost Canada billions over the next few decades according to a new study on the economics of water risk and resiliency.

The new research study by GHD group, an international engineering firm predicts flooding alone could cost the Canadian economy more than $30 billion dollars from now until 2050.

Combined with the impacts of storms and droughts, the total estimated loss could be over $130 billion.

“Those numbers are what we can expect from direct impacts, so damage displaced people, that sort of thing,” said Zuliana Mawani, GHD business group lead water and wastewater.

Mawani says this study is the first of its kind to calculate the economic impact of water risk related to GDP in Canada.

He says the data highlights a need to re-evaluate how communities are using existing and new infrastructure to manage extreme weather events like hurricanes, storms, and rainfall that are accelerated by climate change.

“On the west coast they are rising the elevation at which you can build and what they are really trying to plan for is rising sea levels. You know the city of Toronto is losing 103 million litres of water today due to aging pipes,” Mawani added.

Mawani says we need to adapt, prioritize, and optimize existing infrastructure to get it ready for extreme water events… to reduce damage, and costs.

“We have existing infrastructure, we have a lot of existing infrastructure and what we want to do is make sure it’s able to handle conditions that it may not have been designed to handle.”

The study shows the key economic sectors which will be impacted by flooding and drought are fast-moving consumer goods, manufacturing and distribution, banking and insurance, agriculture, and energy and utilities. Together, these sectors represent direct losses of $88 billion between 2022 and 2050.

And while Canada may not be a water-stressed country, Mawani points out it has an extreme climate and is consistently facing more severe weather events.

“You know in Canada, every level of government has declared climate emergencies. We’re going to be getting these extreme events I think that is inevitable and that is what’s going to happen, it’s about how we choose to handle it.”