In early September, a seawall at Japan's Kansai International Airport on a reclaimed island near Osaka was breached during Typhoon Jebi. The flooding of the runway led to 17 days of airport operations being fully restored, causing significant economic losses to the region and airlines that had to cancel flights. Major airports in Hong Kong, mainland China, and North Carolina were also shut down due to tropical storms last month. These events underscore the risks that investors and insurers face in a sector with $262 billion worth of projects under construction globally, according to Fitch Solutions. Fitch Solutions Head of Infrastructure Richard Marshall noted that there is a clear trend towards an increase in frequency and severity of climate change-related events. "If people do not take this seriously, there is a risk involved." According to Airports Council International (ACI) Director General Angela Gittens, fifteen of the 50 busiest airports worldwide are located at an elevation of less than 30 feet above sea level, making them especially susceptible to the impacts of climate change such as rising sea levels and increased storm surges. Gittens pointed out that some airports are already experiencing sea level rise and flooding on their runways, giving examples from island nations like Vanuatu and the Maldives. She also mentioned that even in developed countries, airports are facing more frequent storms and the need for increased pumping, citing her experience with Miami International Airport. A preliminary version of an ACI policy paper, recently reviewed by Reuters and scheduled for release this week, discusses the increasing risks that climate change poses to airport facilities. The paper advises member airports to conduct risk assessments, implement mitigation measures, and incorporate these considerations into their future master plans. It highlights examples of airports that have already taken proactive steps in planning for climate change, such as the Istanbul Grand Airport, a $12 billion project on the Black Sea set to open soon and become one of the world's largest airports. Debt investors, particularly those with high exposure to airports mostly owned by governments or pension funds, are closely monitoring climate change risks. Ratings agency Moody's covers $174 billion worth of airport bonds and lead analyst Earl Heffintrayer noted that the impact of climate change was highlighted to investors after Superstorm Sandy shut down major New York airports in 2012. This event led to significant flight cancellations, costing airlines $500 million in revenue. Investors are now seeking information on mitigation plans at vulnerable airports like San Francisco and Boston as they consider long-term investments in airport bonds. San Francisco International Airport, which is situated on reclaimed land that is gradually sinking, has completed a feasibility study on a $383 million project to enhance its resilience to rising sea levels along its 8 miles (12.9 km) of bay front shoreline by 2025. Gary Moran, head of Asia aviation at insurance broker Aon, noted an increased focus on safeguarding against flood damage and ensuring the airport's storm drains are effective. The airport is also considering potential future weather conditions. A photo shows a Coast Guard helicopter conducting an assessment of New York Boroughs impacted by Hurricane Sandy in 2012. Singapore's Changi Airport has taken steps to prepare for rising sea levels by resurfacing its runways for better drainage and constructing a new terminal at a higher elevation of 18 feet (5.5 meters) above sea level. These measures have been deemed prudent and reassuring to insurers, according to a US Coast Guard handout via Reuters. The airport's proactive approach is necessary to mitigate weather-related risks, as Singapore anticipates sea levels to increase by 2.5 feet (0.76 meters) by the year 2100. Changi Airport did not provide a statement regarding the cost of additional protection. ACI, Fitch, Moody's and Standard & Poor's were also unable to give Reuters an estimate of how much it would cost globally to protect airports from climate change. The protective measures are often included in larger renovation and expansion projects, according to analysts from ratings agencies. In Australia, Brisbane Airport, situated on reclaimed land 13 feet above sea level, is building a new runway 3.3 feet higher than originally planned, along with a stronger seawall and improved drainage systems to account for 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, such as the seawall costing around A$5 million more than it would without considering sea level rises, but the potential benefits are significant. Coughlan mentioned that regardless of one's beliefs about climate change, it is wise to incorporate designs that take into consideration factors like rising sea levels, increased rainfall, and flood risks. By integrating these considerations into the design process from the beginning, it is possible to build in safeguards without incurring a significant cost premium.