Sunk costs: Airports taking action against rising seas, storms as climate changes

Global airport operators, faced with rising sea levels and more powerful storms as the climate changes, are starting to invest in measures including higher runways, seawalls and better drainage systems to future-proof immovable assets. In early September, a seawall at Japan's Kansai International built on a reclaimed island near Osaka, was breached during Typhoon Jebi. Major airports in Hong Kong, mainland China and North Carolina were also closed due to tropical storms last month. Such incidents highlight the disaster risks to investors and insurers exposed to a sector with an estimated US$262b of projects under construction globally. Fifteen of the 50 most heavily trafficked airports globally are at an elevation of less than 30 feet above sea level, making them particularly vulnerable to a changing climate. <br/>