In early September, a seawall at Japan's Kansai International Airport on a reclaimed island near Osaka was breached during Typhoon Jebi, causing flooding on the runway. It took 17 days to fully restore airport operations, impacting 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 last month due to tropical storms. These incidents underscore the risks faced by investors and insurers in the sector, with $262 billion worth of projects under construction globally. According to Fitch Solutions' Head of Infrastructure Richard Marshall, there is a concerning trend towards more frequent and severe climate change-related events. "If individuals are not taking that seriously, there is a potential risk." According to Angela Gittens, the Director General of Airports Council International (ACI), fifteen out of the 50 busiest airports worldwide are situated at an elevation of less than 30 feet above sea level, which leaves them susceptible to the impacts of climate change such as rising sea levels and increased storm surges. Gittens pointed out that some airports in island nations like Vanuatu and the Maldives are already experiencing the effects of sea level rise, with water reaching their runways. She also mentioned that even in more developed economies, airports are facing challenges such as more frequent storms and the need for increased pumping, citing her experience with Miami airport. A preliminary version of an ACI policy document examined by Reuters, set to be published this week, highlights the increasing threats to airport facilities posed by climate change. It advises member airports to conduct risk assessments, implement preventative measures, and factor climate change into their future development plans. The paper showcases progressive airports that have already incorporated climate change considerations into their planning, like the Istanbul Grand Airport which is expected to be one of the world's largest airports when it opens soon with a cost of $12 billion. Debt investors, particularly those with high exposure to airports, are showing increasing concern about the impact of climate change on their investments. Moody's, a ratings agency, covers $174 billion of airport bonds and analysts are now taking into account the risk of climate change following events like Superstorm Sandy in 2012. This storm led to significant financial losses for airlines and disrupted operations worldwide, prompting investors to inquire about mitigation plans for vulnerable airports like San Francisco and Boston when considering long-term investments in bonds. San Francisco International Airport, situated on sinking reclaimed land, has conducted a feasibility study on a $383 million project to enhance its resilience to sea level rises along its 8-mile bay front shoreline by 2025. Gary Moran, head of Asia aviation at Aon, noted an increase in measures to protect against flood damage and ensure storm drains are adequate. There is a growing focus on preparing for potential worsening weather conditions in the future. A Coast Guard helicopter from Atlantic City conducted an overflight assessment of New York Boroughs impacted by Hurricane Sandy in 2012. According to a US Coast Guard handout via Reuters, Singapore's Changi Airport has taken steps to prepare for rising sea levels, including resurfacing its runways for better drainage and constructing a new terminal 18 feet above sea level. These measures are seen as prudent and reassuring to insurers, as they help protect against potential weather-related risks. Singapore anticipates a sea level rise of 2.5 feet by 2100. Changi Airport did not provide information on the cost of additional protection measures. Various rating agencies were also unable to estimate the global cost of climate change protection at airports. The cost of protective measures is often included in larger renovation and expansion projects at airports, according to analysts. In Australia, Brisbane Airport, situated on reclaimed land near the coast and at a low elevation, is building a new runway higher than originally planned to account for rising sea levels. The incremental cost of these adjustments is relatively low, but the potential benefits are significant, as stated by Paul Coughlan, the director of Brisbane Airport's new runway project. Coughlan emphasized the importance of incorporating design elements that consider factors such as elevated sea levels, intense rainfall, and flooding, regardless of one's beliefs about climate change. By integrating these considerations into design philosophy early on, the cost is not significantly higher, but the benefits in terms of safeguards are substantial.