The number of extreme weather events increased more than four times from only 38 events in 1980 to 174 in 2014, according to The World Energy Council.
The report warns that not all energy infrastructure is prepared for extreme weather, making power supply disruptions in the future more likely
The report, co-authored by Swiss Re Corporate Solutions, focuses on managing and financing extreme weather risks. The report, entitled –”The road to resilience — managing and financing extreme weather risk” will be presented at the meeting of G20 energy ministers in Istanbul, Turkey.
Other findings in the report include:
- Protecting energy infrastructure assets against extreme weather will significantly add to the already existing investment need of $48 – $53 trillion globally by 2035.
- The energy industry needs to move from fail-safe to a safe-fail approach. We need smarter, not stronger, solutions for resilience.
- Energy systems must be viewed more systemically – an event in one area can cause a chain reaction and cause unforeseen problems in other areas. Focusing on what the system as a whole needs can help to better prepare and help to recover critical assets.
- The costs of resilience is not included, nor counted as beneficial, in the financing of infrastructure. Uniquely tailored financial instrumentation can turn system vulnerabilities into investment opportunities.
Source: Swiss Re
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