A new report by the Canadian Climate Institute finds that by investing upfront in adapting public infrastructure, governments could limit the impacts of climate change and save billions of dollars each year.

The report, Prepare or Repair: How climate-proofing public infrastructure pays off, finds that taxpayers will pay a steep and growing price if governments delay or fail to adapt public infrastructure to our changing climate. On the other hand, proactive investment in resilience can sharply reduce infrastructure damage and long-term repair bills.

The analysis shows that governments could save between $5 and $10 billion each year to 2100 by preparing public infrastructure for select climate risks. Investing about $3 billion per year in proactive adaptation would prevent most of the infrastructure damage caused by rising heat and heavier rainfall—freeing up public dollars for other priorities.

The true costs of not adapting are likely even higher: the analysis does not account for the impacts of all climate-driven hazards—such as wildfires, certain types of flooding, permafrost thaw, and coastal erosion—or for the broader economic impacts of infrastructure damage, including disruptions to essential services, business, and trade, and damage to private property.

“Canadians are caught in a perfect storm of aging infrastructure and rising climate risks that are already disrupting our daily lives,” said Rick Smith, President, Canadian Climate Institute. “This isn’t a tomorrow problem; it’s happening now. The research leaves no doubt: adapting public infrastructure will save Canadians billions of dollars down the road, limiting the cascading impacts of extreme weather, and building a stronger, safer, more prosperous country.”

While proactive adaptation minimizes the costs of climate change, it does not eliminate them. Even in a best-case scenario, the analysis finds that total infrastructure costs—of both adaptation investments and unavoidable climate damage—would still increase by $5 billion per year on average until 2100.

Municipalities would bear most of these costs, even though the benefits have a broad reach across the economy. This mismatch between who pays and who benefits underscores the need for stronger financing and revenue tools to support municipal adaptation.

To close this gap and bolster the resiliency of infrastructure in Canada’s changing climate, federal, provincial, and territorial governments should:

• 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 future climate conditions.
• Strengthen climate hazard data and mapping nationwide to support consistent, risk-informed infrastructure decision-making.
• 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 infrastructure owners in reducing long-term vulnerability.
• Tailor programs to support the most vulnerable communities and critical infrastructure.

The report’s findings are clear: every year of delay increases future costs. Without proactive adaptation investment, the toll of climate change on public infrastructure is expected to rise sharply across the country.

Investing now in resilient roads, bridges, sewers, and water infrastructure will protect families, communities, businesses, and the economy from escalating climate threats.