Climate Resilience: Cities Need Infrastructure Investment - Goldman Sachs

The impacts of climate change on weather, sea levels, food and water supplies should be seen as an investment opportunity for our cities, says global investment banking firm Goldman Sachs.

In a report out last month the bank says cities need to adapt to become more resilient to climate change and this could “drive one of the largest infrastructure build-outs in history”.

The bank says cities will be on the frontline of any need to adapt because they are home to more than half the world’s population and generate roughly 80% of global GDP.

First, the need for innovative sources of financing and new ways to support climatic transition.

Secondly, the need to look at equity issues emerging from an adaptation process. For example, should a city strengthen flood defences in the CBD or should it upgrade public housing in flood-prone areas? Given the scale of the aims we need to evaluate carefully where best to invest the limited resources available.

But in this respect, no solutions are proposed.

This report is one of the many financial reports on climate change we have seen recently, about the risks and opportunities for the banking and insurance system. It’s probably the first to acknowledge clearly the need for comprehensive adaptation investments to make our cities more resilient.

But in concentrating on the infrastructure needs for cities, the report seems to miss the big picture.

There is still a need to understand how more integrated actions will include the social and environmental dimensions of adapting to climate change to create more sustainable and equitable cities.