Building a Climate-Resilient City

This briefing by the International Institute for Sustainable Development explores economic and financial strategies for building climate-resilient cities, with a specific focus on Alberta, Canada. It advocates for moving beyond traditional financial accounting to 'multiple-bottom-line' approaches and the valuation of ecosystem services to prioritize cost-effective adaptation over reactive disaster response.

• Climate change is projected to significantly impact Alberta, with average annual temperatures potentially rising by 2.0°C by the 2030s and 4.0°C by the 2060s compared to the 1990s, assuming current global greenhouse gas emission rates continue. These changes are expected to increase the frequency of extreme weather, flooding, and days exceeding 30°C, threatening municipal water resources and infrastructure.
• The document argues that early investment in adaptation is more cost-effective than reactive spending. It cites the Stern Review, which estimates that climate change impacts could cost at least 5 per cent of global GDP annually, while the costs of mitigation and adaptation would be approximately 1 per cent of GDP.
• The briefing proposes a 'multiple-bottom-line' accounting method that expands on traditional triple-bottom-line (financial, environmental, and social) frameworks. This approach specifically requires the integration of climate change adaptation into planning and budgeting processes to identify vulnerabilities and the effectiveness of adaptive measures.
• Eco-asset accounting and the valuation of ecosystem services allow cities to use natural features—such as wetlands for stormwater management or urban forests for air quality—as alternatives to more expensive engineered solutions. In Gibsons, B.C., this approach helped the town manage risk and reduce unsustainable maintenance costs that previously exceeded one third of the annual infrastructure budget.
• To build financial robustness, the document suggests utilizing new funding streams like Alberta's carbon levy, which the government estimates will provide CAD 2.2 billion for green infrastructure. Proactive resilience measures are also seen as a way to maintain credit ratings, property values, and investor confidence while reducing liability costs.
• The briefing identifies several innovative financing mechanisms to promote redundancy, including green bonds, climate bonds, and public-private partnerships (PPPs). It notes that Ontario has issued green bonds since 2014, contributing CAD 1.2 billion to public transit expansion, and highlights the potential for low or negative interest rate bonds to attract institutional investors.
• Municipalities can encourage citizen and business resourcefulness through regulatory and financial incentives. This includes using the power to subclass non-residential properties under Alberta’s Modernized Municipal Government Act to reward or penalize land-use based on ecosystem services, as well as using expedited permitting and zoning upgrades to promote adaptive outcomes.

APA

McCullough, D. S. (2017). Building a Climate-Resilient City. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/pcc-brief-climate-resilient-city-economics-finance.pdf

Chicago

McCullough, Dr. Steve. Building a Climate-Resilient City. International Institute for Sustainable Development, 2017. https://www.iisd.org/system/files/publications/pcc-brief-climate-resilient-city-economics-finance.pdf.

Wikipedia

{{cite report |last1=McCullough |first1=Dr. Steve |title=Building a Climate-Resilient City |publisher=International Institute for Sustainable Development |date=2017 |url=https://www.iisd.org/system/files/publications/pcc-brief-climate-resilient-city-economics-finance.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mccullough2017building, author = {McCullough, Dr. Steve}, title = {{Building a Climate-Resilient City}}, institution = {International Institute for Sustainable Development}, year = {2017}, url = {https://www.iisd.org/system/files/publications/pcc-brief-climate-resilient-city-economics-finance.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }