New report from Canadian Climate Institute urges increased infrastructure investment in proactive adaptation
As governments across Canada ramp up infrastructure investments to bolster economic security, every dollar spent must deliver the greatest bang for its buck.
This generational funding must not only hedge against ongoing global trade uncertainty but protect Canadians across the country from the growing impacts of severe weather events.
A new independent report from the Canadian Climate Institute (CCI) entitled “Prepare or Repair: How Climate-proofing Public Infrastructure Pays Off,” commissioned in part by Insurance Bureau of Canada (IBC), provides a national assessment of how climate change will affect the costs of maintaining, renewing and repairing public infrastructure – and how acting early can significantly reduce those costs.
CCI’s research shows that investing about $4 billion per year in this type of proactive adaptation would prevent most of the infrastructure damage caused by extreme heat and heavier rainfall. It also shows that taxpayers could save between $5 billion and $10 billion a year in infrastructure costs if governments implement effective adaptation measures.
CCI found that taxpayers will pay a steep and growing price if governments delay adaptation of, or fail to adapt, public infrastructure to Canada’s changing climate. On the other hand, proactive investment in resilience can sharply reduce the disruptions associated with infrastructure failure and reduce long-term infrastructure costs.
To bolster infrastructure resilience in Canada’s changing climate, CCI recommends that, in addition to increasing investments, federal, provincial and territorial governments:
Expand funding for infrastructure adaptation and modernize financial tools available to municipalities and other infrastructure owners – including Indigenous governments – to finance resilience upgrades
Plan, operate, maintain and renew public infrastructure so it continues to function safely and reliably under climate conditions in the future
Strengthen climate hazard data and mapping nationwide to support consistent, risk-informed decision-making about infrastructure
Accelerate updates to infrastructure codes and standards so that new and renewed infrastructure is built to withstand Canada’s changing climate
Ensure all public infrastructure spending consistently accounts for climate risk and supports decision-makers in reducing the long-term vulnerability of infrastructure
Tailor programs to support the most vulnerable communities and critical infrastructure.
IBC strongly supports CCI’s report and its recommendations that investments in infrastructure should focus on resilience to ensure communities can better withstand climate risks. IBC believes Canada can be a global leader in disaster resilience.
Growing impact of severe weather
Severe weather damage is a growing risk across Canada, with insured losses increasing substantially over the last decade. Between 2006 and 2015, Canada’s annual insured losses due to catastrophic weather events and wildfires totalled $14 billion, adjusted for inflation. By contrast, between 2016 and 2025, annual insured losses due to catastrophic weather events and wildfires totalled $37 billion – nearly triple the losses in the previous decade. The average number of claims nearly doubled over the last decade.
This increase in insured losses results in significant pressure on consumers who are seeing challenges with the affordability and availability of property insurance. Severe weather damage also impacts the cost of insurance for municipalities.
That’s why Canada’s property and casualty insurance industry has been a staunch advocate for increased investments in infrastructure to help keep communities safe and ensure insurance remains widely available and affordable.
In 2025, IBC published six recommendations on how Canada can build climate-resilient homes and safer communities. IBC followed this up with its Three-Point Resilience Plan, a comprehensive strategy to protect vulnerable communities, ensure the continued sustainability of the home insurance market, and reduce the financial and emotional tolls of natural disasters.
As part of its ongoing advocacy, IBC also encourages sustained federal investment in programs, such as the Disaster Mitigation and Adaptation Fund, that enhance community resilience and deliver significant economy‑wide benefits. Every dollar invested in climate adaptation can return as much as $13 to $15 in benefits.
The warning signs - the storms, the devastation, the growing threats to lives and properties - are clear. IBC hopes that governments recognize these signs, implement the recommendations and make the necessary infrastructure investments, thus making Canada more resilient and paying long-term dividends to communities
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