the costs of climate change: a series of five reports

Climate damages are costing Canada billionsacting now can limit future damage.

Climate change is already costing Canadian households billions of dollars—and these costs are just the tip of the iceberg.

Our Costs of Climate Change series documents how Canada is already suffering from increasingly devastating wildfires, floods, and extreme weather. 

These damages will continue to worsen as the climate warms, putting people’s long-term prosperity, health, and well-being at risk. 

Our research shows, however, that proactive adaptation can dramatically cut those costs, protecting households and securing a more affordable and prosperous future. 

What we found

Through a series of five reports, the Canadian Climate Institute has sought to better understand the costs Canada faces from accelerating climate damages—and what we can do about them. Here’s what we found:

If adaptation measures are not implemented the costs to our economy and society are potentially catastrophic.5 to 6 %$250 billion$13.6 billion$200 million50%

Click on the numbers to find out what they mean.

Since 2010, the costs of weather-related disasters and catastrophic events have amounted to about 5 to 6 per cent of Canada’s annual GDP growth, up from an average of 1 per cent in previous decades.

From the report Tip of the Iceberg: Navigating the Known and Unknown Costs of Climate Change

Towards the end of the century ground-level ozone could cause over a quarter of a million people per decade to be hospitalized or die prematurely, with an annual cost of about $250 billion.

From the report The Health Costs of Climate Change: How Canada Can Adapt, Prepare, and Save Lives

Flood damage to homes and buildings could increase from $60 million annually to as much as $300 million annually by mid-century and tenfold by end of century, with costs as high as $13.6 billion annually.

From the report Under Water: The Costs of Climate Change for Canada’s Infrastructure

Without adaptation, national costs from permafrost thaw damages to roads could cost up to $200 million per year in the next decade.

From the report Due North: Facing the Cost of Climate Change for Northern Infrastructure

Climate-induced damages slow Canada’s economic growth in 2025 by $25 billion annually, which is equal to 50 per cent of projected GDP growth in 2025. 

From the report Damage Control: Reducing the Costs of Climate Impacts in Canada

If adaptation measures are not implemented the costs to our economy and society are potentially catastrophic.5 to 6 %$250 billion$13.6 billion$200 million50%

Click on the numbers to find out what they mean.

Since 2010, the costs of weather-related disasters and catastrophic events have amounted to about 5 to 6 per cent of Canada’s annual GDP growth, up from an average of 1 per cent in previous decades.

From the report Tip of the Iceberg: Navigating the Known and Unknown Costs of Climate Change

Towards the end of the century ground-level ozone could cause over a quarter of a million people per decade to be hospitalized or die prematurely, with an annual cost of about $250 billion.

From the report The Health Costs of Climate Change: How Canada Can Adapt, Prepare, and Save Lives

Flood damage to homes and buildings could increase from $60 million annually to as much as $300 million annually by mid-century and tenfold by end of century, with costs as high as $13.6 billion annually.

From the report Under Water: The Costs of Climate Change for Canada’s Infrastructure

Without adaptation, national costs from permafrost thaw damages to roads could cost up to $200 million per year in the next decade.

From the report Due North: Facing the Cost of Climate Change for Northern Infrastructure

Climate-induced damages slow Canada’s economic growth in 2025 by $25 billion annually, which is equal to 50 per cent of projected GDP growth in 2025. 

From the report Damage Control: Reducing the Costs of Climate Impacts in Canada

Adaptation can dramatically cut the costs of climate change, leading to a more stable, affordable, and prosperous future.15 millionDouble5x98%

Click on the numbers to find out what they mean.

Installing shading technologies on 50 per cent of Canada’s manufacturing facilities by the 2080s would save an average of 15 million labour hours that would be lost to the health and productivity effects of high heat.

From the report The Health Costs of Climate Change: How Canada Can Adapt, Prepare, and Save Lives

The economic benefits of adaptation double when considering economy-wide gains, not just the savings to those who benefit directly.

From the report Damage Control: Reducing the Costs of Climate Impacts in Canada

Early adaptation investments in rebuilding foundations of homes and buildings in the Northwest Territories could reduce damages five-fold over the course of the century.

From the report Due North: Facing the Cost of Climate Change for Northern Infrastructure

Using climate-resilient materials when maintaining and replacing roads can reduce climate change-related damage costs by up to 98 per cent. This is equivalent to up to $5 billion in annual savings nationally over the next few decades and up to $13 billion annually by the end of the century.

From the report Under Water: The Costs of Climate Change for Canada’s infrastructure

Adaptation can dramatically cut the costs of climate change, leading to a more stable, affordable, and prosperous future.15 millionDouble5x98%

Click on the numbers to find out what they mean.

Installing shading technologies on 50 per cent of Canada’s manufacturing facilities by the 2080s would save an average of 15 million labour hours that would be lost to the health and productivity effects of high heat.

From the report The Health Costs of Climate Change: How Canada Can Adapt, Prepare, and Save Lives

The economic benefits of adaptation double when considering economy-wide gains, not just the savings to those who benefit directly.

From the report Damage Control: Reducing the Costs of Climate Impacts in Canada

Early adaptation investments in rebuilding foundations of homes and buildings in the Northwest Territories could reduce damages five-fold over the course of the century.

From the report Due North: Facing the Cost of Climate Change for Northern Infrastructure

Using climate-resilient materials when maintaining and replacing roads can reduce climate change-related damage costs by up to 98 per cent. This is equivalent to up to $5 billion in annual savings nationally over the next few decades and up to $13 billion annually by the end of the century.

From the report Under Water: The Costs of Climate Change for Canada’s Infrastructure

When adaptation is combined with global emissioins reducstions, the costs of climate change, and the impacts on Canada's economy and individual households, decline even further.90-98%$127 million3 quarters

Click on the numbers to find out what they mean.

Adaptation measures could reduce net climate-related costs for road repair and replacement by 77 to 84 per cent by mid-century in a high-emissions scenario, but if emissions are substantially reduced adaptation can eliminate 90 to 98 per cent of costs by end of century.

From the report Under Water: The Costs of Climate Change for Canada’s Infrastructure

Across the North, in a high-emissions scenario thermosyphons for buildings can save $33 million and reduce damage costs by 33 per cent but in a low-emissions scenario thermosyphons can save $127 million annually and reduce damage costs by 78 per cent.

From the report Due North: Facing the Cost of Climate Change for Northern Infrastructure

Taking proactive adaptation measures can cut climate costs in half–and when combined with global emissions reductions, climate-induced costs are cut by three-quarters.

From the report Damage Control: Reducing the Costs of Climate Impacts in Canada

When adaptation is combined with global emissioins reducstions, the costs of climate change, and the impacts on Canada's economy and individual households, decline even further.90-98%$127 million3 quarters

Click on the numbers to find out what they mean.

Adaptation measures could reduce net climate-related costs for road repair and replacement by 77 to 84 per cent by mid-century in a high-emissions scenario, but if emissions are substantially reduced adaptation can eliminate 90 to 98 per cent of costs by end of century.

From the report Under Water: The Costs of Climate Change for Canada’s Infrastructure

Across the North, in a high-emissions scenario thermosyphons for buildings can save $33 million and reduce damage costs by 33 per cent but in a low-emissions scenario thermosyphons can save $127 million annually and reduce damage costs by 78 per cent.

From the report Due North: Facing the Cost of Climate Change for Northern Infrastructure

Taking proactive adaptation measures can cut climate costs in half–and when combined with global emissions reductions, climate-induced costs are cut by three-quarters.

From the report Damage Control: Reducing the Costs of Climate Impacts in Canada

About the series

In 2020, the Canadian Climate Institute set out to understand just how much climate change will cost Canada—and individual households—in the coming decades. Our series of five research reports explores the costs, impacts, and consequences of accelerating climate change, and what must be done to avoid the worst impacts and build a safer, more affordable, and more prosperous future.

Report cover of Tip of the Iceberg: Navigating the know and unknown costs of climate change

Tip of the Iceberg: Navigating the Known and Unknown Costs of Climate Change explores the economic impacts of climate change in Canada, showing that damages will cut across the Canadian economy and, without adaptation, compound, with potentially devastating consequences. Read more.

Report cover of The Health Costs of Climate Change

The Health Costs of Climate Change: How Canada Can Adapt, Prepare, and Save Lives shows that climate change could cost our healthcare system billions of dollars and reduce economic activity by tens of billions of dollars over the coming decades. Read more.

Report cover of Under Water: The Costs of climate change for Canada's infrastructure

Under Water: The Costs of Climate Change for Canada’s Infrastructure reveals that Canada’s infrastructure isn’t built for today’s —or tomorrow’s— climate, putting people’s health, safety, livelihoods, and the strength of the economy at risk. Read more.

Report cover of Due North: Facing the costs of climate change for Northern infrastructure

Due North: Facing the Costs of Climate Change for Northern Infrastructure shows that Northern infrastructure, severely underfunded for decades, is at risk of serious damage from climate change, with devastating consequences for Northern communities. Read more.

Report cover of Damage Control

Damage Control: Reducing the costs of climate impacts for Canada pulls together analysis from our previous reports, and new data and research, revealing how costly the overall impacts of climate change will be for our economy, society, and well-being, and how proactive adaptation can address these impacts, leading to a more stable, affordable, and prosperous future. Read more.