In early September, a seawall at Japan's Kansai International Airport on a reclaimed island near Osaka was breached by Typhoon Jebi. The runway was flooded, leading to a 17-day restoration period that had a significant impact on the region's economy and airlines that had to cancel flights. Other major airports in Hong Kong, mainland China, and North Carolina were also closed due to tropical storms last month. These incidents underscore the risks of disasters for investors and insurers involved in the global construction projects worth an estimated $262 billion, according to Fitch Solutions. Fitch Solutions Head of Infrastructure Richard Marshall noted the increasing frequency and severity of climate change-related events. "If people do not take that seriously, there is a risk involved." According to Airports Council International (ACI) Director General Angela Gittens, fifteen out of the 50 busiest airports worldwide are situated at an elevation of less than 30 feet above sea level, making them particularly susceptible to the impacts of climate change such as rising sea levels and increased storm surges. Gittens mentioned that some airports, like those in Vanuatu and the Maldives, are already experiencing the effects of sea level rise, while even airports in well-developed economies are facing challenges such as more frequent storms and increased need for drainage systems, as seen in Miami. A preliminary version of an ACI policy paper, which was reviewed by Reuters and is scheduled for release this week, highlights the increasing dangers that facilities face from climate change. The paper advises member airports to conduct risk assessments, implement mitigation measures, and consider climate change in their future development plans. It mentions examples of airports that have already integrated climate change considerations into their planning, such as the Istanbul Grand Airport, a $12 billion project on the Black Sea that is set to be one of the largest airports in the world upon its opening next month. Debt investors, particularly those with investments in airports mostly owned by governments or pension funds, face significant exposure. Ratings agency Moody's covers $174 billion worth of airport bonds, with lead analyst Earl Heffintrayer highlighting the increased risk of climate change post Superstorm Sandy in 2012. The storm resulted in the closure of major New York airports, leading to the cancellation of thousands of flights and significant financial losses for airlines. Investors are now scrutinizing mitigation plans, especially for low-lying airports like San Francisco and Boston, as they consider long-term bond investments. San Francisco International Airport, which was built on reclaimed land that is 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 increase in efforts to protect against flood damage and ensure storm drains are effective. More consideration is being given to potential worsening weather conditions in the future. According to a US Coast Guard handout via Reuters, Singapore's Changi Airport has taken measures to address sea level rise by resurfacing its runways for better drainage and constructing a new terminal 18 feet above sea level. These actions are seen as prudent and reassuring to insurers by providing protection against weather-related risks. Singapore anticipates a sea level rise of 2.5 feet by 2100. Changi Airport and various rating agencies did not provide estimates on the cost of climate change protection at airports. The cost of protective measures is often included in larger construction projects. Brisbane Airport in Australia, located on low-lying land, is building a new runway higher than originally planned to mitigate rising sea levels. The incremental cost of these adaptations is relatively low, but the benefits are significant. Coughlan stated that regardless of whether one believes in climate change or not, it is wise to incorporate considerations for rising sea levels, increased rainfall, and flooding into design projects. By integrating these factors from the beginning, the cost is not significantly higher and provides added protection.