A congressional watchdog agency has put climate change atop the financial risks that could imperil the federal government. It’s the first time that the General Accountability Office has given the phenomenon such infamy -- but it’s still unlikely to sway those who say the issue is not one for government to solve.

The analysis will undoubtedly provide ammunition to those who say that the White House and Congress are critical in the effort to reduce greenhouse gas emissions. Already, the U.S. Environmental Protection Agency has enacted rules to curb those emissions and made it very difficult to construct new coal facilities. Opponents of those actions have said that the aberrant weather patterns are part of a natural cycle -- not manmade emissions.

The agency does not make the distinction: “Climate change creates significant financial risks for the federal government, which owns extensive infrastructure, such as defense installations; insures property through the National Flood Insurance Program; and provides emergency aid in response to natural disasters. The federal government is not well positioned to address the fiscal exposure presented by climate change, and needs a government wide strategic approach with strong leadership to manage related risks,” the report states.

It says that between 2004 and 2011, that weather-related events have cost the federal government $80 billion. It is worth noting that Washington requested $60.4 billion to provide remedies to those affected by Hurricane Sandy.

The GAO adds that the federal government is not well-positioned to cope with extensive weather events, which is why it has added climate change to its 2013 list of high-risks. Heat-trapping emissions, it says, could threaten coastal areas and harm agricultural productivity while increasing the intensity and frequency of floods, droughts and hurricanes. A “cohesive approach” is necessary, it adds -- one that interconnects actions from federal, state and local officials.

In 2011, 14 major weather events occurred costing at least $1 billion each, says the National Oceanic Atmospheric Administration. The GAO, for example, is recommending that the federal government provide climate data to state and local governments so that they can be make better decisions.

Coordinated Effort

But will U.S. leaders take practical steps avert a worst-case scenario? Public-private partnerships are in place to research and develop greener technologies. And as those tools mature, prices will come down and their possibilities will be even brighter. Meantime, U.S. regulators are clamping down on those emissions regulated by the Clean Air Act.

However, “These events are primarily the responsibilities of the cities and states,” says Rep. Darrell Issa, R-Calif., at a news conference, as reported by NBC. “We can no longer assume that the federal government will come in with an emergency supplemental [funding] every time there is an [extreme weather] occurrence.

That response, though, does not work well in practice. Consider Hurricane Sandy, which happened right before the 2012 presidential election: President Obama and Republican New Jersey Governor Chris Christy cooperated in an effort to provide immediate federal help, making Christy an effusive benefactor. Meantime, lawmakers from both sides of the aisle have teamed up to get Congress to provide relief funds to New York and New Jersey residents.

Major insurance companies are also raising awareness. Take Munich Re, which assumes risks from primary insurers: It says that North America has experienced a nearly five-fold increase in extreme weather patterns over 30 years. 



The insurer says that climate change is a culprit that cannot be ignored, affecting the formation and intensity of heat waves, droughts and thunderstorms: In the Gulf of Mexico alone, there’s been a 35 percent increase in the size of storms since 1995. It adds that when “global warming combines with natural weather cycles,” it exacerbates the perils and the insured losses.



“While implementing adaptive measures may be costly, there is a growing recognition that the cost of inaction could be greater and — given the government's precarious fiscal position — increasingly difficult to manage given expected budget pressures which will constrain not just future ad hoc responses but other federal programs as well,” adds the GAO. 



The federal government already has a number of programs in place to minimize greenhouse gases. To limit the economic fallout, however, the watchdog agency says that a coordinated intergovernmental initiative is needed -- one that has “strong leadership and the authority to manage climate change risks.”


EnergyBiz Insider has been awarded the Gold for Original Web Commentary presented by the American Society of Business Press Editors. The column is also the Winner of the 2011 Online Column category awarded by Media Industry News, MIN. Ken Silverstein has been honored as one of MIN’s Most Intriguing People in Media.

Twitter: @Ken_Silverstein

energybizinsider@energycentral.com

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