6/19/09 In recognition of the summer season and the subsequent hurricane season, Congressman Timothy Bishop and Senator Chuck Schumer have expressed their desire for quick responses to the Army Corps' report.  Similarly, the report includes discussions of anticipated climate change and the associated risks of future changes such as more frequent hurricanes and nor'easters and greater than anticipated rates of sea level rise.      Fire Island Inlet to Montauk Point, NY (FIMP) Reformulation Study - Update            2nd in a series of on-going articles Joe Vietri Director US Army Corps of Engineers National Planning Center For Coastal and Storm damage   Over the last several months there has been considerable attention focused on the locally designed and funded shore protection efforts the communities have undertaken.  These efforts while comparatively small have been critical in maintaining a healthy Barrier Island.  It is widely acknowledged that a healthy Barrier Island provides a first line of defense for the mainland of Long Island and provides critical habitat for endangered species and other wildlife.  With the anticipated effects of Climate Change we can expect among other things the possibility of increased storms and a rise in Sea Level it is therefore critical that we plan now for these future conditions. U.S. Army Corps of Engineers  draft of Formulation Report The U.S. Army Corps of Engineers has recently completed a draft Formulation Report, which is intended to summarize efforts that have been undertaken during the reformulation study including an assessment of the existing conditions of the barrier islands, estuaries and mainland of the south shore of Long Island from Fire Island to Montauk Pt; analysis of the economic and environmental impacts of anticipated future conditions; identification of the potential risk to life and property due to storm damages; and identification of viable alternatives to managing storm risks along the south shore of Long Island from Fire Island Inlet to Montauk Point.  The draft Formulation Report has been submitted to the cooperating agencies (New York State and the U.S. Department of the Interior) to get a common understanding and consensus on the formulation process, the alternatives that have been considered and the potential protection measures. General Reevaluation Report and an Environmental Impact Statement  will be submitted for public review in 2010.  The document provides the basis for decision makers to recognize the potential risks and the environmental impacts and  opportunities.  The document will also facilitate discussion with the goal of coming to a mutual agreement on a recommended plan. After the cooperating agencies have had an opportunity to review the draft report, discuss the findings and agree on a path forward we hope to have a series of Public workshops to solicit additional public input.  The final product would provide the basis for the preparation of a General Reevaluation Report and an Environmental Impact Statement which will be submitted for public review in 2010.  Even with the final recommended plan Long Island will remain extremely vulnerable. In closing I would like to remind everyone that while all the plans considered and ultimately the final recommended plan will somewhat reduce the effects of storms; the entire area including the mainland of Long Island will remain extremely vulnerable.  Only through sound land use, environmental stewardship and a public awareness about living in a high hazard area can we adapt to the effects of climate change.    Editor’s note:-To further clarify above I have presented a press release forwarded to me by Joe Vietri’s office covering similar problems:

The H. John Heinz III Center for Science, Economics and the Environment

 

 

FOR INFORMATION: Christophe Tulou—Heinz Center 703-919-3733 (cell); tulou@heinzctr.org Anne Hummer 202-737-6307

Peyton Fleming--Ceres 617-247-0700 x120 617-733-6660 (cell) fleming@ceres.org

 

EMBARGOED--For Immediate Release: April 23, 2009

 

LEADING INSURERS, PUBLIC OFFICIALS AND ENVIRONMENTAL GROUPS CALL FOR BOLD ACTION TO ADAPT TO CHANGING CLIMATE TRENDS TO PROTECT AMERICA’S COASTLINES

 

Resilient Coasts Blueprint Outlines Steps to Reduce Risks and Losses in Face of Growing Threats

 

WASHINGTON & BOSTON—As another hurricane season approaches and government leaders debate U.S. climate policy, a first-ever coalition of leading insurers, public officials, risk experts, builders and conservation groups today announced a bold blueprint of policy changes and common sense actions that could reduce economic losses from future storms and rising sea levels by as much as half along U.S. coastlines. The coalition urges the Obama Administration, Congress, local leaders and the private sector to see that these actions are implemented through regulation, investment, education and other means.

 

“Our coasts are threatened, there are reasonable steps to counter those threats, and we as a nation are not yet taking them,” states the Resilient Coasts Blueprint, which identifies critical steps from fine-tuning climate risk models to predict rising seas and powerful storms; to preserving vital, storm-buffering wetland areas; to strengthening building codes to reduce hurricane losses. “Evidence shows we can reduce our risks and our costs by 50 percent or more.”

 

Directed by The Heinz Center and Ceres, the blueprint was endorsed today by a diverse group, including The Travelers Institute, The Nature Conservancy, National Oceanic and Atmospheric Administration, the Wharton School, and the Mayor of Charleston, S.C.

 

“Our policymakers need to make wise and tough decisions, and this consensus blueprint provides an important roadmap for collaboration to address increasing hazards along our shores,” said Deb Callahan, president of The Heinz Center. 

 

“The people of Charleston, South Carolina, are already combating rising seas,” said Charleston Mayor Joe Riley, noting that one foot of sea level rise would inundate some of the state’s shoreline areas up to a half-mile inland. “Charleston is one of our nation’s treasures, and without serious action today to confront these risks it—and many other American cities—faces an uncertain future. The pressures on our coast will continue unabated, making regional planning essential to shape growth and to protect our social, economic and natural well being.”

 

A 2008 assessment by the Wharton School’s Risk Center shows fast-rising economic losses worldwide from hurricanes and other natural catastrophes, with many of the biggest impacts along coastal areas.  Losses have increased from just over $50 billion in the 1950s to nearly $800 billion in the 1990s, with about $620.6 billion so far in the current decade. Last year’s losses exceeded $200 billion, including $40 billion in losses from Hurricanes Gustav and Ike in the U.S. alone.

 

“Investors are increasingly exposed to economic losses fueled by coastal development that ignores the intensifying hazards from rising sea levels and stronger coastal storms,” said Mindy S. Lubber, president of Ceres, a leading coalition of investors and environmental groups working on sustainability challenges such as climate change. “Reducing risks along the coasts will protect vulnerable populations and the long-term value of investments at the same time.”

 

Noting that the Gulf and Atlantic coasts have nearly $9 trillion of insured coastal property, coalition members called on investors to take stock of their coastal exposure, especially in real estate and infrastructure, and for banks to include climate risks in lending- and investment-related due diligence.

 

“The Travelers Institute’s support of the Resilient Coasts Initiative reflects its deep belief that loss mitigation, strong and well enforced building codes, and sensible land use planning are critical to reducing risk to life and property as well as to making private insurance more plentiful in coastal areas,” said Joan Woodward, Travelers executive vice president of public policy.  “Because of the critical nature of its work, the Resilient Coasts Initiative is the first project to receive the support of the newly created Travelers Institute, which was established to participate in public policy dialogue on matters of interest to the insurance marketplace and contribute to solutions on a wide range of issues that face our customers and the communities we serve.”

 

The blueprint’s specific recommendations include:

 

• Enabling planning for climate impacts by providing the necessary science and decision-making tools;
• Requiring risk-based land use planning;
• Designing adaptable infrastructure and building code standards to meet future risk;
• Strengthening ecosystems as part of a risk mitigation strategy;
• Developing flexible adaptation plans;
• Maintaining a viable private property and casualty insurance market;
• Integrating climate change impacts into due diligence for investment and lending.

 

An increasing number of studies underscore the value of reducing coastal vulnerabilities. A Wharton study concludes that homeowners in Florida could reduce losses from a severe hurricane by 61 percent, resulting in $51 billion in savings, simply by building to strong construction codes. South Carolina, New York and Texas would see savings of 44 percent, 39 percent and 34 percent, respectively, according to the same study.

Similarly, the National Institute of Building Sciences shows that every dollar spent on mitigation saves society about four dollars on recovery costs.  Despite this evidence, nearly all U.S. coastal cities and towns lack adequate land use requirements and building code standards to realize these savings.

 

The blueprint cites the example of 500 commercial clients of the insurer FM Global, which experienced about 85 percent less damage from Hurricane Katrina as similarly situated properties.  The reduced losses were directly the result of building retrofits and other hurricane loss prevention and preparedness measures taken by the insurer’s 500 policyholders. The investment return was striking—a $2.5 million investment in loss prevention resulted in $500 million in avoided losses.

 

The blueprint comes as debate is intensifying in Congress over climate adaptation. The recently announced draft Waxman/Markey climate and energy bill would require states and federal agencies to develop climate adaptation plans, create dedicated funds for ecosystem adaptation efforts and establish a National Climate Service to create climate data and adaptation support tools for local governments.

 

“It is high time to address the impacts of severe weather and rising seas on the lives and livelihoods of coastal citizens,” said the Heinz Center’s Callahan.  “This blueprint provides thoughtful, multi-sector guidance as Congress defines a national strategy for a more resilient future.”

 

 

About the Heinz Center

Established in December 1995 in honor of Senator H. John Heinz III, the H. John Heinz III Center for Science, Economics and the Environment   (http://www.heinzcenter.org/) is a nonprofit, nonpartisan institution dedicated to improving the scientific and economic foundation for environmental policy through multisectoral collaboration. Focusing on issues that are likely to confront policymakers, the Center creates and fosters collaboration among industry, environmental organizations, academia, and government in each of its program areas and projects.  In this, the Center is carrying out the legacy of Senator Heinz. 

  About Ceres

Ceres (http://www.ceres.org) is a leading coalition of investors, environmental groups and other public interest organizations working with companies to address sustainability challenges such as global climate change.  Ceres coordinates the Investor Network on Climate Risk (INCR), a group of 80 institutional investors and investment firms with collective assets totaling more than $7 trillion.

 

About The Travelers Institute

The Travelers Institute, created by The Travelers Companies, Inc. (NYSE: TRV), seeks to be a thought leader on public policy topics of importance to the insurance marketplace.   The Institute draws upon the industry expertise of Travelers’ senior management and the technical expertise of many of Travelers’ underwriters, risk managers, and other experts to provide information and analysis to public policy makers and regulators.  The Institute partners with academic and non-profit institutions throughout the world to host discussion forums regarding topics of interest to the insurance marketplace.  Travelers is a leading provider of property casualty insurance for auto, home and business. For more information, visit www.travelers.com.

 

 

 

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 Resilient Coasts: A Blueprint for Action

 

The Resilient Coasts Blueprint was authored and endorsed by the following organizations:A UNIFI Company

Risk Management Solutions

The Resilient Coasts Initiative was made possible in partnership with The Travelers Companies, Inc. and with the generous support of the Alcoa Foundation, Gaylord and Dorothy Donnelley Foundation and The Heinz Endowments.

 

Preface

The Heinz Center and Ceres – along with those who have developed and endorsed this Blueprint – undertook the challenging task of forging consensus on principles and actions to increase coastal resilience for three fundamental reasons: our coasts are threatened, there are reasonable steps to counter those threats, and we as a nation are not yet taking them.

Powerful storms are wreaking increasing havoc along the world’s coasts, as Hurricane Katrina and Cyclone Nagris indelibly demonstrated. A recent assessment by the Wharton School’s Risk Center revealed a dramatic surge in global economic losses from natural disasters, increasing from just over $50 billion in the 1950s to almost $800 billion in the 1990s, with about $420.6 billion so far in the current decade (through 2007)1. Munich Re estimated worldwide economic losses from natural catastrophes at $200 billion for 2008, up from $82 billion in 20072. Lloyd’s of London and Risk Management Solutions (RMS) predict that flood losses along tropical Atlantic coastlines would increase 80 percent by 2030 with about one foot of sea level rise3 – in line with the conservative estimates of the 2007 report of the Intergovernmental Panel on Climate Change.

Of particular interest are the commonsense and cost-effective steps our nation can take to drastically reduce such risks and their associated economic impacts. Five hundred commercial clients of the insurer, FM Global, experienced approximately 85 percent less damage from Hurricane Katrina as similarly situated properties4. This significant reduction in the amount of damage was directly attributable to hurricane loss prevention and preparedness measures taken by these policyholders. The return on investment is striking – a $2.5 million investment in loss prevention resulted in $500 million in avoided losses.5

An increasing number of studies underscore the value and wisdom of reducing our coastal vulnerabilities. Wharton has demonstrated that homeowners in Florida could reduce losses from a severe hurricane by 61 percent, resulting in $51 billion in savings, simply by building to strong construction codes6. Putting this in perspective, the same cost reductions applied to Katrina damages would have reduced the $41.1 billion worth of insured property losses to about $16.1 billion. Similarly, the National Institute of Building Sciences showed that every dollar spent on mitigation saves society about four dollars on recovery costs7. Despite this evidence, nearly all U.S. coastal cities and towns lack adequate land use requirements and building code standards to realize these savings. Among the additional benefits of substantially reduced risks and costs are a stabilized coastal insurance market and less expensive premiums.

1. Wharton Risk Management and Decision Processes Center, University of Pennsylvania. “Managing Large Scale Risks in a New Era of Catastrophe.” 2007 http://opim.wharton.upenn.edu/risk/library/Wharton_LargeScaleRisks_FullReport_2008.pd

2. Munich Re. 2009. NatCatSERVICE http://www.munichre.com/geo

3. Lloyd’s and RMS. 2008. “Coastal Communities and Climate Change: Maintaining Insurability.”

4. Dankwa, D. 2006. “FM Global Touts Underwriting by Engineering as Superior.” Best’s Review, p. 93, June.

5. Green, M. 2006. “Preparing For the Worst.” Best’s Review, pp. 40-44, April.

6. Wharton, 2007.

7. National Institute of Building Sciences/Multihazard Mitigation Council. 2005. Natural Hazard Mitigation Saves: An Independent Study to Assess the Future Savings from Mitigation Activities. Vol. 1. Washington, DC.

 

 

Even with stronger building codes, our coasts face escalating risks. Roads, transit lines and drinking water supplies – the lifelines of our coastal cities – are already facing pressures they were not designed to withstand. The National Research Council estimates that a sea level rise of 2-4 feet, expected to occur in the next century, would inundate 27 percent of the major roads in the Gulf Coast8. Yet today, in most places, even new development is not being designed to withstand the impacts of swelling seas. As the national science agencies renew their commitment to climate science, priority must be placed on providing local governments with the predictive capacities and other tools they need to adapt land use and infrastructure for an uncertain future.

The need to adapt is also an opportunity to restore our coastal ecosystems, which are a critical complement to defensive infrastructure. Wetlands provide an estimated $23.2 billion each year of storm surge and flood protection along our coastlines, according to a study by the University of Vermont9. Yet the combined pressures of climate change and development – over half our population lives along the coasts – have led to the systematic depletion of protective wetlands. Clearly, the resiliency of our coastal populations and our ecosystems go hand in hand.

Our goal in producing this Resilient Coasts Blueprint is to provide and inspire leadership and direction throughout our businesses, governments, and communities. The endeavor’s broad-based collaboration, along with the group’s intention to implement these principles where appropriate within their institutions and advocate for their broader adoption, underscores the importance of common cause and collective action. Evidence shows we can reduce our risks and our costs by 50 percent or more, creating a powerful foundation for this Blueprint – for while the threats may be inevitable, catastrophes are not.

Deb Callahan President The Heinz Center

Mindy Lubber President Ceres