Climate threat to U.S. infrastructure is accelerating. Here's what's most at risk
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Climate risk to U.S. infrastructure is rising, and government cuts to climate science are only accelerating that risk.
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4 min read
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investment
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July 1, 2025
04:24 PM
CNBC
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Infrastructure was built decades ago and therefore designed for a climate that no longer exists
Sectors with the worst grades from the American Society of Civil Engineers include airports, power and telecommunications infrastructure
There is a $3. 7 trillion spending gap over the next 10 years to get U
Infrastructure to a state of good condition, according to the ASCE
Watch now4:3004:30Rising Risks: Investors rethink infrastructureSquawk BoxU
Infrastructure is barely getting a passing grade, and one of the fastest growing blems is climate change
Airports are flooding, bridges are melting from extreme heat, and telecommunications are getting slammed by increasingly extreme weather
In 2023, at Fort Lauderdale/Hollywood International Airport, historic rainfall turned runways into rivers, shutting down operations and stranding passengers
In New York City last summer, extreme heat caused metal on a bridge over the Harlem River to expand so much that the bridge got stuck open
Every single category of U
Infrastructure is at growing risk from climate change — a finding by the American Society of Civil Engineers, which trains engineers and informs federal, state and local building codes
ASCE's infrastructure report card gave the nation overall a "C" grade, saying climate-related challenges are widespread, affecting even regions previously resistant to these events. "We continue to see more extreme weather events, so our infrastructure, many times, was not designed for these types of activities," said Tom Smith, ASCE's executive director, adding that it will only get worse. "Whether it's ice, snow, drought, heat, obviously, hurricanes, tornadoes, we have to design for all of that, and we have to anticipate not just where the puck is now, but where we think it's going," Smith said
Sectors with the worst grades include airports, power and telecommunications infrastructure
CNBC asked First Street, a climate risk analytics firm, to overlay its risk modeling on these specific locations nationally
It found that 19% of all power infrastructure, 17% of telecommunications infrastructure and 12% of airports have a major risk from flood, wind or wildfire
Infrastructure was built decades ago, and therefore designed for a climate that no longer exists
This has a direct impact on investors in the infrastructure space
Sarah Kapnick, formerly chief scientist at the National Oceanic and Atmospheric Administration and now global head of climate advisory at JPMorgan Chase, said her clients are asking more and more the climate impact to their investments. "How should I change and invest in my infrastructure
How should I think differences in my infrastructure, my infrastructure construction
Should I be thinking insurance, different types of insurance
How should I be accessing the capital to do this type of work. " Kapnick said
Both Kapnick and Smith said making infrastructure climate-resilient comes back to the science. "Climate and science is something that we take very, very seriously, working with the science, connecting it with the engineering to tect the public health, safety and welfare," said Smith
But that science is under attack, seeing deep cuts from the Trump administration, which fired hundreds of employees at NOAA, FEMA and the National Institute of Standards and nology — key government agencies that advance climate science. "There's going to be this adjustment period as people figure out where they're going to get the information that they need, because many market decisions or financial decisions are based on certain data sets that people thought would always be there," Kapnick said
The nation's infrastructure also needs funding
ASCE estimates there is a $3. 7 trillion spending gap over the next 10 years to get U
Infrastructure to a state of good condition
The Trump administration cuts to spending so far include ordering FEMA to cancel the nearly $1 billion Building Resilient Infrastructure and Communities gram, which was specifically aimed at reducing damage from future natural disasters.
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