Cities must lead on climate fight

The flood waters from southern Alberta have already subsided from Saskatoon’s iconic river, but that doesn’t mean the impact of these storms won’t still be felt.

While it will be months before the total cost of the damage to such places as Calgary, Canmore, High River, and the Siksika and Morley First Nations will be known, estimates already top out at more than $5 billion for the disaster.

Much of that damage is uninsurable, meaning the lion’s share will be picked up by federal disaster programs. And even some of the uninsurable damage is likely to be covered by insurance companies, who are reeling from the public relations problem of telling homeowners they aren’t covered.

According to the Globe and Mail, insurance companies are backing down from threats they wouldn’t pay out anything in flooded areas even if there is evidence of sewage backup — which is insured — if it happened to coincide with surface flooding, which isn’t covered. A campaign of “naming and shaming” companies such as TD Insurance, RBC Insurance Services and Alberta Motor Association (AMA) Insurance, was having an impact.

The companies were worried about the loss of future business, given that earning a reputation for not paying out claims deters people from buying insurance in the first place. But, as National Bank Financial analyst Peter Routledge notes, the decision to pick up the tab for uninsurable damage could end up spreading the cost to other customers through higher premiums.

“One way or another we are going to pay for this ... through increased municipal taxes and insurance rates,” says former Calgary councillor Bob Hawkesworth. “And eventually, the cost of inaction is going to be greater than the cost of action.”

Mr. Hawkesworth wants to put in place a carbon tax to raise money to cover extreme weather events. He suggests this is the proper place to raise the money since, according to climate scientists, it is the increase in carbon in the atmosphere that is contributing to the increased occurrence of extreme weather events.

The former councillor isn’t alone in suggesting that such events require forethought. Former Toronto mayor David Miller says governments must do more to prepare for these once-rare weather events. Toronto, which is now locked in a heat wave, also got hit with an unusual flood this summer.

But Mr. Miller points out that, of all levels of governments that have a say over such preparations, it is municipalities that have most at stake and that also contribute most to the problem. According to a group representing the world’s largest cities committed to fighting climate change, most greenhouse gas emissions can be traced to cities, Mr. Miller says.

While this year’s flooding will cost Calgary some $300 million to $400 million, municipalities can mitigate these costs by changing building standards, incorporating natural flood controls into building codes and regulations, and taking active steps to reduce emissions.

The Alberta government has committed to changing regulations to discourage people from building in flood-prone areas. But this is a battle for the long-term, and leadership can’t wane once the flood waters subside.