{"id":312728,"date":"2021-07-30T23:27:00","date_gmt":"2021-07-30T20:27:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/market-extra-climate-risk-is-hitting-home-for-state-and-local-governments\/"},"modified":"2021-07-30T23:27:00","modified_gmt":"2021-07-30T20:27:00","slug":"market-extra-climate-risk-is-hitting-home-for-state-and-local-governments","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/market-extra-climate-risk-is-hitting-home-for-state-and-local-governments\/","title":{"rendered":"#Market Extra: Climate risk is hitting home for state and local governments"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a383f4794256\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a383f4794256\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/market-extra-climate-risk-is-hitting-home-for-state-and-local-governments\/#Does_the_US_need_a_coordinated_national_response_or_will_it_be_every_city_for_itself\" >Does the U.S. need a coordinated national response or will it be every city for itself?<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/market-extra-climate-risk-is-hitting-home-for-state-and-local-governments\/#No_state_untouched\" >No state untouched<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/market-extra-climate-risk-is-hitting-home-for-state-and-local-governments\/#Beware_one-size-fits-all\" >Beware one-size-fits-all<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/market-extra-climate-risk-is-hitting-home-for-state-and-local-governments\/#Andrea_Riquier\" >Andrea Riquier<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Market Extra: Climate risk is hitting home for state and local governments<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Does_the_US_need_a_coordinated_national_response_or_will_it_be_every_city_for_itself\"><\/span>\n  Does the U.S. need a coordinated national response or will it be every city for itself?<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000357255\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000357255\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       In 1988, Congressional testimony from NASA\u2019s Dr. James Hansen helped cement the words \u201cclimate change\u201d in the national consciousness. In 2015, nearly 200 countries met in Paris to pledge to address the problem. But 2020, the year the skies over San Francisco turned a sick shade of orange, the Earth\u2019s temperature hit its highest ever, the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.noaa.gov\/media-release\/record-breaking-atlantic-hurricane-season-draws-to-end\" class=\"icon none\">Atlantic hurricane season smashed records<\/a>, and nearly <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.drought.gov\/news\/2020-drought-update-look-drought-across-united-states-15-maps#:~:text=As%20of%20August%2025%2C%202020,developed%20recently%20in%20western%20PA.\" class=\"icon none\">every state west of the Mississippi suffered severe drought<\/a>, may well be remembered as the year it finally hit home.<\/p>\n<div class=\"paywall\">\n       Across the U.S., state and local governments and the bond market that helps them do business are coming to grips with a situation that can\u2019t be ignored any longer. They\u2019re taking increasingly proactive, if piecemeal, steps toward making their communities ready for extreme weather and pollution scenarios that once seemed unimaginable.<\/p>\n<p> \u201cI feel like there\u2019s been a revolution in the past year in terms of thinking about climate change,\u201d said Kevin DeGood, director of infrastructure policy at the left-leaning Center for American Progress. \u201cWhat\u2019s that old saying \u2014 everything seems impossible until it h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ens, and then it feels inevitable?\u201d<\/p>\n<p>But \u201cinevitable\u201d doesn\u2019t mean \u201csettled,\u201d and right now preparedness is patchwork and, arguably, too limited. There\u2019s no way to tabulate what\u2019s being done, let alone what <em>should<\/em> be done, which means assigning dollar figures to either is daunting. <\/p>\n<h6><span class=\"ez-toc-section\" id=\"No_state_untouched\"><\/span>No state untouched<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>A recent <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.edf.org\/sites\/default\/files\/content\/report-ClimateChange-FueledWeatherDisasters.pdf\" class=\"icon none\">report from the Environmental Defense Fund<\/a> offers a few reminders of how costly climate change has already been, and an acknowledgement that it may only become more expensive from here.<\/p>\n<p>The U.S. Government Accountability Office estimates that between 2005 and 2019, the federal government has spent an average of $30 billion per year on \u201cweather disaster assistance.\u201d  All 50 states have suffered from at least one billion-dollar weather disaster, and North Carolina, Georgia, Alabama, Mississippi and Texas \u2014 home to some of the fastest-growing regions in the country \u2014 have each endured billion-dollar crises in every category of disaster: \u00a0hurricanes, severe storms, floods, winter storms, freezes, droughts and wildfires.<\/p>\n<p><strong>Read:<\/strong> The top U.S. cities labeled as dangerous \u2018heat islands\u2019 include a few small-population surprises<\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cdn.americanprogress.org\/content\/uploads\/2020\/05\/05054504\/ClimteChangeMuni-brief.pdf?_ga=2.218977113.1314768088.1627593109-1560050430.1627497065\" class=\"icon none\">In a 2020 report, <\/a>DeGood argued that the enormity of the issue required a coordinated national response, a set of broad best practices that takes into account everything from engineering to insurance.<\/p>\n<p>\u201cWhat I was trying to say is, this is beyond the analytical capability of any standard borrower,\u201d he said in a recent interview with MarketWatch. \u201cIt\u2019s not as if Miami-Dade County knows how to run climate models. What we need for this to become more meaningful is a multi-agency working group meeting over a couple of years.\u201d<\/p>\n<p><strong>Opinion:<\/strong>\u00a0Miami\u2019s $6 billion sea wall won\u2019t save the city from flooding \u2014 green hybrid designs make more sense<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>DeGood doesn\u2019t mean anything against Miami-Dade, per se: he used one of its 2019 bond deals in his 2020 paper to illustrate the challenges issuers face. In fact, the county <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.miamidade.gov\/releases\/2021-04-30-mayor-chief-heat-officer.asp\" class=\"icon none\">recently appointed a Chief Heat Officer<\/a> to address the impacts of heat, hurricanes, floods, and sea level rise, among other things. It\u2019s just that, as he writes in the paper, \u201cclimate change is the greatest collective action problem the world has ever encountered.\u201d<\/p>\n<p>The Center for American Progress was just one participant in a larger group of advocates that wanted the Biden administration and its congressional allies to direct more than $2 trillion on measures spanning clean-energy tax credits,  water infrastructure, nuclear-energy incentives, electric buses and more programs that could change the budget landscape for state and local governments. <\/p>\n<p>President Joe Biden has made climate change a priority through executive actions, bilateral and multilateral global cooperation and reversing some Trump-era regulatory rollbacks, but a paper-thin Democratic majority on Capitol Hill has meant many of the more robust climate-change initiatives were s<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">trip<\/a>ped or sharply reduced from infrastructure and budget legislation that continues to make its way through Congress. <\/p>\n<p><strong>See: <\/strong>Climate change is huge risk for the American financial system, a major new bipartisan report says<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Beware_one-size-fits-all\"><\/span>Beware one-size-fits-all<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>But for participants in the $3.9 trillion municipal-bond market, who have perhaps the best aggregate lens on what\u2019s going on locally, the individual nature of our communities calls for bespoke responses.<\/p>\n<p>U.S. municipal green-labeled debt is expected to comprise a larger share of the municipal market this year, from 3.4% of total municipal issuance in 2020 to 4.1% in 2021, according to S&amp;P Global Ratings. Some $15 billion of green muni bonds were issued in 2020 in spite of the pandemic, according to a report from <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.climatebonds.net\/files\/reports\/north_america_sotm_final.pdf\" class=\"icon none\">the Climate Bonds Initiative.<\/a><\/p>\n<p>On average, sustainable debt\u2019s share of total municipal market issuances increased 51% per year from 2014 through 2020. <\/p>\n<p><strong>Read:<\/strong> Yellen keeps up push for greater U.S. climate-change regulation, rebuffing concerns of Republicans<\/p>\n<p>\u201cThe caution about the muni market is that it\u2019s not one-size-fits-all,\u201d said Colin MacNaught, founder and CEO of BondLink, a service for muni-bond issuers. American localities differ on everything from existing climate and geography to demographics to political views on how much government should respond.<\/p>\n<p><strong>Related:<\/strong> What if extreme flooding submerges a chemical plant or snarls traffic? Cities can and must shore up for climate change now, says report<\/p>\n<p>And in contrast to DeGood, who continues to think we haven\u2019t yet hit the exogenous shock that will jolt everyone into action, MacNaught thinks that\u2019s already happening in the bond market. There\u2019s admittedly wide variety in how robustly issuers address climate-risk disclosures, but many are doing it, he said, and in many cases they\u2019re doing it because they want to meet the demands of investors with environmental mandates.<\/p>\n<p>Michael Brown manages the financing of green bonds and climate initiatives for the San Francisco Public Utilities Commission, a BondLink client and the agency in charge of water and sewer for the city. The PUC has issued $2.5 billion of green bonds, which aren\u2019t exempt from some taxes like ordinary municipal bonds, over the past several years.<\/p>\n<p>\u201cWe have more investors show up at our deals that are green than non-green,\u201d Brown told MarketWatch. He says some deals have been over-bought thanks to demand from environmentally-minded investors. \u201cIt\u2019s very exciting as an issuer to get rewarded for doing the right thing.\u201d<\/p>\n<p>Brown is almost as excited by the analytical work he does \u2014 not only \u201cimpact reports,\u201d which show how bond deal proceeds are being spent, but also on the broader benefits to the community, how project outcomes align with United Nations Sustainable Development Goals, and more.<\/p>\n<p>Still, Brown\u2019s situation is what you might call a sweet spot for leading on climate preparedness: San Francisco is a famously progressive city with strong finances, a supportive state legislature and a keen sense of urgency thanks to its coastal position and ongoing fear of seismic activity. <\/p>\n<p>Meanwhile, some guidance is starting to roll out. The Government Finance Officers Association has issued a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.gfoa.org\/new-and-revised-best-practices-and-advisories\" class=\"icon none\">set of best practices<\/a> for community financial planners. And in March, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/news\/public-statement\/lee-climate-change-disclosures\" class=\"icon none\">the Securities and Exchange Commission announced a more active approach<\/a> to climate-risk disclosures. Most market participants believe that regulation will focus on corporate entities, but some are urging the group that regulates muni bonds to work with the SEC for more guidance.<\/p>\n<p><strong>Read:<\/strong> CEOs want SEC climate reporting separate from earnings but concede new rules are likely<\/p>\n<p>Funding the kind of infrastructure we need to address climate risk is a heavy lift, Brown said \u2014 but  it also represents opportunity, he thinks, to address things like community-building. \u201cPeople see it more as an opportunity now to achieve multiple benefits, not just solving one problem.\u201d<\/p>\n<p><strong><em>Rachel Beals contributed reporting to this article<\/em><\/strong><\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Andrea Riquier\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/author\/andrea-riquier\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/ARiquier\",\"text\":\"@ARiquier\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:ariquier@marketwatch.com\",\"text\":\"ariquier@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Andrea_Riquier\"><\/span>Andrea Riquier<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-7573-8791632B1080%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Market Extra: Climate risk is hitting home for state and local governments&#8221; Does the U.S. need a coordinated national response or will it be every city for itself? In 1988, Congressional testimony from NASA\u2019s Dr. James Hansen helped cement the words \u201cclimate change\u201d in the national consciousness. In 2015, nearly 200 countries met in Paris&#8230;<\/p>\n","protected":false},"author":1,"featured_media":312729,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-312728","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/312728","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=312728"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/312728\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/312729"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=312728"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=312728"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=312728"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}