In early September, a seawall at Japan's Kansai International Airport on a reclaimed island near Osaka was breached during Typhoon Jebi. The runway was flooded, leading to 17 days of airport operation restoration, impacting the region's economy and airlines that cancelled flights. Major airports in Hong Kong, mainland China, and North Carolina were also closed due to tropical storms last month. These incidents underscore the disaster risks for investors and insurers involved in a sector with $262 billion worth of projects under construction globally, according to Fitch Solutions. Fitch Solutions Head of Infrastructure Richard Marshall noted the increasing frequency and severity of climate change-related events. "If individuals do not take this issue seriously, there is a potential risk." Fifteen out of the 50 busiest airports worldwide are situated at an elevation of less than 30 feet above sea level, making them especially susceptible to the effects of a changing climate, such as rising sea levels and increased storm surges. Angela Gittens, the Director General of the Airports Council International (ACI), pointed out that airports in countries like Vanuatu and the Maldives are already experiencing the impacts of sea level rise, while even airports in more developed economies are facing challenges like increased storms and flooding, as seen in Miami. A preliminary version of an ACI policy paper, which has been reviewed by Reuters and is set for release this week, highlights the increasing risks that climate change poses to airport facilities. The paper urges member airports to conduct risk assessments, implement mitigation strategies, and factor climate change into their future development plans. It also showcases progressive airports that have already incorporated climate change considerations into their planning, like the Istanbul Grand Airport, a $12 billion project on the Black Sea that is poised to be one of the world's largest airports upon its opening next month. Debt investors, particularly those with high exposure to airports, are becoming more concerned about the risks posed by climate change, as highlighted by the impact of Superstorm Sandy in 2012. Moody's, a ratings agency, covers $174 billion worth of airport bonds, prompting investors to inquire about mitigation plans for airports like San Francisco and Boston. Earl Heffintrayer, the lead analyst covering US airports at Moody's, emphasized the importance of assessing climate change risks when investing in bonds with long terms. San Francisco International Airport, situated on land that is sinking, has completed a study on a $383 million project to protect against rising sea levels by 2025. The airport is taking steps to ensure it is prepared for potential weather-related challenges in the future. According to a US Coast Guard handout via Reuters, Singapore's Changi Airport has taken measures to prepare for rising sea levels, including resurfacing runways for better drainage and constructing a new terminal at a higher elevation of 18 feet (5.5 metres). These precautions have been deemed prudent by experts and are meant to provide reassurance to insurers. Singapore anticipates a sea level rise of 2.5 feet (0.76 metre) by 2100, prompting the need for such protective measures. Changi Airport did not provide a comment on the cost of additional protection against climate change. Various rating agencies, including ACI, Fitch, Moody's, and Standard & Poor's, were unable to give Reuters an estimate of the global cost of climate change protection measures at airports. These protective measures are often included in larger renovation and expansion projects, according to analysts from rating agencies. In Australia, Brisbane Airport, which is situated on reclaimed land just 13 feet above sea level, is building a new runway 3.3 feet higher than originally planned, along with a higher seawall and improved drainage systems to address rising sea levels. Paul Coughlan, the director of Brisbane Airport's new runway project, mentioned that the additional cost of these measures is relatively low - for example, the seawall cost approximately A$5 million more than it would have without considering sea level rises - but the potential benefits are significant. Coughlan stated that regardless of one's stance on climate change, it is wise to incorporate factors such as rising sea levels, increased rainfall, and flood risks into design plans. By doing so from the beginning, the cost is not significantly higher and provides added protection.