Economic cost benefit analysis of climate change adaptation for infrastructure

Abstract

This paper explores the lessons learnt from the Optimising Adaptation Investment projects for the Department of Climate Change and Energy Efficiency–it includes coastal settlements, water supply and rail infrastructure case studies. These projects are the first of their kind in Australia and are considered internationally as a leading example of economic cost benefit analysis. They have been used effectively to inform decision making on specific adaptation responses to climate change risks to existing and new infrastructure. The lessons learnt will be explored for offshore platforms, ports, rail, road, drainage, tailings dams, mine facilities, water, and power supply, which includes the following elements: What decision makers require to make informed decisions under the uncertainty of climate change impacts. Reducing the uncertainty through economic modelling and cost benefit analysis. Optimising the right timing and scale of various adaptation options. Benefiting from oil and gas infrastructure adaptation opportunities. To further support the elements above, the applied process for integrating climate adaptation into infrastructure planning, design and operation will be illustrated by AECOM project experiences. AECOM has completed more than 60 significant climate change risk and adaptation projects for mines, ports, water supply and treatment, energy generation, transmission and distribution, rail, road, and coastal settlements in Australia, including the report: Climate Change Impacts to Infrastructure in Australia for the Garnaut Climate Change Review.