News
Can climate resilience create measurable value for infrastructure owners and investors?
A new report published by the International Finance Corporation (IFC) and developed by AXA Climate with Scientific Climate Ratings demonstrates that the answer is yes. The study, with contributions from Tractebel, shows how targeted adaptation measures can reduce climate-related losses, improve operational continuity and protect the long-term value of infrastructure assets.
To build this business case, the study examined three critical infrastructure sectors in Brazil: power transmission, water and sanitation, and roads. Tractebel contributed its expertise to the power transmission case study, working alongside AXA Climate, Scientific Climate Ratings, Suez and Egis.
As part of the project, Tractebel provided engineering expertise and infrastructure insights to support the assessment of climate risks and adaptation measures affecting a critical power transmission asset in Brazil.
Adaptation & resilience measures are not only about protecting existing assets; they are also about reshaping the way future projects are conceived by embedding adaptation measures from the earliest stages of development. At Tractebel, we believe this requires a truly multidisciplinary approach, bringing together engineering, environmental and socioeconomic expertise to deliver solutions tailored to each project's reality. From site selection and technology choices to nature-based solutions and resilient engineering, every decision matters in building infrastructure that is fit for the future.
Gustavo NAPPO
Project Coordinator at Tractebel
The transmission case study highlighted wildfire risk as the main climate threat to the infrastructure assessed, accounting for the majority of projected losses. Flooding and storms were also identified as relevant risks. Without adaptation measures, climate-related hazards could significantly affect asset value and operational performance.
The study highlights the growing financial and operational impact of climate risks on infrastructure. Beyond physical damage, climate-related disruptions can affect asset availability, revenue stability and long-term asset performance.
At the same time, the report demonstrates that well-targeted resilience measures can generate substantial benefits. In the transmission sector, the most effective measures could reduce service disruptions by around 85% while protecting up to $8.6 of asset value for every dollar invested.
Beyond preserving infrastructure performance, the report also highlights broader benefits including enhanced operational reliability, improved insurability, stronger credit profiles and reduced exposure to regulatory risks. For infrastructure owners and operators, resilience can help safeguard both asset value and long-term financial stability.
The report’s findings were further discussed during the IFC seminar on climate-resilient infrastructure held in Paris last month. Nicolas AVISSE, Chief Engineer for Hydrology & Climate at Tractebel in France, participated in the expert roundtable dedicated to transmission & distribution, transport/logistics and water/waste infrastructure, contributing Tractebel’s perspective on climate adaptation and resilient infrastructure investment.
At a time when climate risks are becoming increasingly material for infrastructure owners and investors, the study reinforces an important message: resilience is not only an environmental necessity, it is also a sound business decision.