In early September, a seawall at Japan's Kansai International Airport, located on a man-made island near Osaka, was breached during Typhoon Jebi. This led to the flooding of the runway and it took 17 days to fully restore airport operations. The incident had a significant impact on the region's economy and resulted in numerous flight cancellations by airlines. Other major airports in Hong Kong, mainland China, and North Carolina also experienced closures due to tropical storms in the same month. These events serve as a reminder of the risks faced by investors and insurers in the infrastructure sector, with an estimated $262 billion worth of projects under construction globally. Fitch Solutions' Head of Infrastructure, Richard Marshall, noted that there is a concerning trend of increasing frequency and severity of climate change-related events. "If individuals are not taking this matter seriously, it poses a risk." The vulnerability of fifteen out of the 50 busiest airports worldwide, located at an elevation of less than 30 feet above sea level, to the impacts of climate change such as rising sea levels and increased storm surges is evident. Angela Gittens, the Director General of the Airports Council International (ACI), highlighted that some airports, particularly in island nations like Vanuatu and the Maldives, are already experiencing the effects of sea level rise. Even in developed economies, airports are facing challenges such as more frequent storms and the need for additional drainage systems, as seen in Miami. A preliminary version of an ACI policy paper, reviewed by Reuters and scheduled 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 consider climate change in their future development plans. It showcases airports that have already incorporated climate change considerations in their planning, such as the Istanbul Grand Airport, a $12 billion project on the Black Sea set to open soon as one of the world's largest airports. Investors in airport bonds, which are mainly owned by governments or pension funds, are at a heightened risk due to climate change, as highlighted by the aftermath of Superstorm Sandy in 2012. Moody's, a ratings agency, covers $174 billion worth of airport bonds. As a result of Sandy's impact on major New York airports, investors are now more interested in mitigation plans for airports vulnerable to climate change, such as San Francisco and Boston, especially when considering long-term investments. San Francisco International Airport has completed a feasibility study on a $383 million project to protect against sea level rises on its bay front shoreline by 2025. More attention is being given to flood protection and ensuring storm drains are effective, with consideration for potential worsening weather conditions in the future. According to a US Coast Guard handout via Reuters, Singapore's Changi Airport has taken precautions for potential scenarios up to the year 2100. They have resurfaced their runways for better drainage and are constructing a new terminal 18 feet above sea level to safeguard against rising sea levels. This proactive approach has been deemed prudent by experts and is expected to reassure insurers. Singapore anticipates a rise in sea levels of 2.5 feet by the year 2100, making these measures crucial for the airport's resilience against weather-related risks. Changi Airport did not provide a comment on the cost of additional protection measures for climate change. Several organizations, including ACI, Fitch, Moody's, and Standard & Poor's, were unable to give Reuters an estimate of the global cost of climate change protection at airports. Analysts from ratings agencies mentioned that protective actions are often included in larger renovation and expansion projects. Brisbane Airport in Australia, which is located 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 combat rising sea levels. The director of Brisbane Airport's new runway project, Paul Coughlan, stated that the additional cost of these measures was relatively low, with the seawall costing around A$5 million more than without considering sea level rises, but the potential benefits were significant. Coughlan stated that regardless of one's beliefs about climate change, it is wise to incorporate considerations for rising sea levels, increased rainfall, and flooding into design plans. By integrating these factors from the beginning, the cost is not significantly higher and provides added protection.