Climate change is accelerating damage to Canada’s aging roads, bridges, storm sewers, and water treatment systems—driving up long-term repair costs and increasing risks to communities and businesses. A new report from the Canadian Climate Institute, titled Prepare or Repair: How Climate-Proofing Public Infrastructure Pays Off, concludes that proactive adaptation investment could save governments billions of dollars annually while strengthening national resilience.

According to the analysis, governments could save between $5 billion and $10 billion per year through 2100 by preparing public infrastructure for key climate risks such as rising temperatures and heavier rainfall. An estimated $3 billion per year in adaptation spending would prevent most projected infrastructure damage from these hazards—reducing costly emergency repairs and freeing up public funds for other priorities.

However, the report warns that the cost of inaction is steep and growing. Without proactive investment, climate-related damage to public infrastructure will rise sharply in the coming decades. Even under a best-case adaptation scenario, total infrastructure costs—including both resilience upgrades and unavoidable damage—are projected to increase by an average of $5 billion per year through the end of the century.

Notably, the report does not account for all climate-driven risks, such as wildfires, certain flood types, permafrost thaw, and coastal erosion. It also excludes broader economic impacts tied to infrastructure failure, including disruptions to essential services, trade, private property, and business continuity—suggesting the true cost of delay may be significantly higher.

Municipal governments are expected to shoulder the majority of adaptation costs, despite the widespread economic and social benefits of resilient infrastructure. This imbalance highlights the need for stronger financing tools and expanded federal and provincial support to enable municipalities and Indigenous governments to invest in climate resilience.

The report outlines several priority actions for federal, provincial, and territorial governments:

• Expand funding and modernize financing tools for infrastructure adaptation
• Integrate climate risk into infrastructure planning, maintenance, and renewal
• Strengthen national climate hazard data and mapping systems
• Update infrastructure codes and standards to reflect future climate conditions
• Ensure public spending consistently accounts for long-term climate risk
• Target programs to support vulnerable communities and critical infrastructure

The findings reinforce a clear message: every year of delay increases future costs. Strategic, upfront investment in climate-resilient infrastructure can reduce long-term damage, protect essential services, and safeguard Canada’s economy.

For policymakers, infrastructure owners, and construction industry leaders, the economic case is compelling—building resilience now is significantly more cost-effective than repairing preventable climate damage later.

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