Risky Business: Building a Resilient Power Sector

Abstract

The evidence of human-induced climate change grows stronger with every scientific report. While action to mitigate rising temperatures is increasingly urgent, it is also essential to consider how to adapt to the consequences of global warming. The long-term investment horizons used in the electricity industry require an early risk assessment for its assets. Electric utilities must prepare to maintain supply in the face of different weather patterns and more frequent extreme weather events, as confirmed by the Fifth Assessment Report of the Intergovernmental Panel on Climate Change.. Members of the electric utilities project of the World Business Council on Sustainable Development (WBCSD) have recently published a report, ?Building a Resilient Power Sector,? to share their learning and understanding of best practices in increasing the resilience of the power sector (see www.wbcsd.org/resilience.aspx). This report contributes to WBCSD?s Action2020 climate change business solutions for resilience (see ?WBCD?s Action2020 Framework?).