Province warned of long-term cost of inaction
Ontario’s fiscal watchdog says future governments will face major infrastructure expenditures
Climate change will mean billions of dollars in additional annual infrastructure costs for future Ontario governments, the province’s fiscal watchdog warns.
In a new report tabled Tuesday at Queen’s Park, the Financial Accountability Office predicted extreme rainfall, heat and quickening freeze-thaw cycles will ravage public buildings like hospitals, schools, public transit systems, universities, colleges and government offices.
“Ontario’s provincial and municipal governments currently own and manage a large portfolio of buildings and facilities worth about $254 billion,” Peter Weltman, the financial accountability officer, told reporters Monday.
“These public buildings have long service lives and maintaining this portfolio of assets over the century will require substantial ongoing spending even in the absence of climate change,” he said, noting federal facilities were excluded from the two-volume, 98-page study.
“Our report finds that the estimated costs of maintaining Ontario’s current portfolio of public buildings and facilities in a state of good repair would be $10.1 billion (annually),” the FAO said, estimating additional yearly expenses could range from $800 million to $1.5 billion.
Between next year and the end of the decade, Weltman said, extreme weather could “add nearly $6 billion to the costs of maintaining public buildings and facilities in a state of good repair” beyond the current annual expenses.
Even in a scenario where greenhouse gas emissions peak in the 2040s and then rapidly decline, he predicted an additional $800 million annually in maintenance costs. If emissions continue to rise, it could be an extra $1.5 billion a year.
His report said climate change could mean mechanical, electrical and structural problems for buildings, as well as landscaping challenges.
“We have all seen the catastrophic impact of extreme rainfall that took place a couple of weeks ago in southern B.C., as essential bridges and highways were unable to sustain the impacts of the heavy rain,” the watchdog said.
“What happened in B.C. underscores the importance of work like this, which quantifies the budgetary impact climate hazards will have on public infrastructure,” he said.
“The FAO also explored the financial implications of adapting Ontario’s public buildings to withstand these climate hazards and found that broad adaptation strategies would be modestly less costly for provincial and municipal governments than not adapting.”
As well, measures like modernizing the building code, updating design parameters, and improving flood protections “would have significant but uncosted benefits, such as minimizing the disruption of public services.”
Environment Minister David Piccini insisted the government is staying on top of the challenge, noting it launched “Ontario’s first-ever climate change impact assessment.”