Ranking Members Waxman and Rush Call for Hearing on Financial Risks of Climate Change

The report found that across the nation, up to $106 billion worth of coastal property will likely be underwater by 2050, and by the end of the century, states such as Oregon, Washington, and Idaho could experience as many days over 95°F as Texas.  Climate change will reduce labor productivity and crop yields. The report notes that doing nothing will be more costly than acting now to mitigate climate change and recommends prompt action to address the threat. 

The full text of the letter is available below and online here.

July 23, 2014

The Honorable Fred Upton
Chairman
Committee on Energy and Commerce
2125 Rayburn House Office Building
Washington, D.C. 20515

The Honorable Ed Whitfield
Chairman
Subcommittee on Energy and Power
Committee on Energy and Commerce
2125 Rayburn House Office Building
Washington, D.C. 20515

Dear Chairman Upton and Chairman Whitfield:

We are writing to request a hearing on the recent report Risky Business: the Economic Risks of Climate Change in the United States.[1]  The report analyses the financial risks of climate change in key business sectors to inform business and investor decision making.

The Risky Business Project is co-chaired by a bipartisan team consisting of former New York City mayor, Michael Bloomberg, former Secretary of the Treasury, Hank Paulson, and retired hedge fund manager, Tom Steyer.  The report’s committee members include leaders from both sides of the aisle, including former Senator Olympia Snowe, former Secretary of the Treasury Robert Rubin, and prominent business leaders.  The project commissioned an independent analysis of the economic risks of climate change by the Rhodium Group to inform the Risky Business report.[2]

Members of both parties agree that this is an important report that should be carefully considered.  For example, Olympia Snowe and former Secretary of Health and Human Services Donna Shalala said: “As a Republican and Democrat, we teamed up to make the case that at its core, climate change should not be a political issue.  Instead, it is fundamentally about risks to our safety and economy, and how to reduce those risks.”[3]

The findings in the report warrant the committee’s attention.  The report finds that nationwide up to $106 billion worth of coastal property will likely be underwater by 2050 if we continue with business as usual.[4]  By the end of the century, states like Oregon, Washington, and Idaho could experience as many hot days over 95°F as are currently expected in Texas.[5]  As the climate warms, labor productivity in key sectors including construction, agriculture, and utilities will likely be reduced.  Reductions in labor productivity may be even greater in the southeast.  In the Midwest, farmers will face crop yield declines of up to 19% by mid-century if we continue on our current path without adaptation.[6]

To provide investors the data they need to make informed decisions, the report examines climate change impacts in every region of the country and even analyzes data at the county level.  The clearest message of the report is that doing nothing is going to be much more costly than acting now to mitigate climate change.  According to Secretary Paulson, climate change “is a crisis we can’t afford to ignore… we must not lose sight of the profound economic risks of doing nothing.”[7]

The report recommends three areas of action to manage the risks posed by climate change: changing everyday business practices to become more resilient; incorporating climate risk assessment into capital expenditures and balance sheets; and instituting policies to mitigate and adapt to climate change.[8]  According to the report, business as usual is simply not fiscally responsible.

The report concludes by saying, “we can still avoid many of the worst impacts of climate change…but only if we start to change our business and public policy decisions today.”[9]  We urge you to hold a hearing on this report so that members can learn about the economic impacts of climate change.

Sincerely,

Henry A. Waxman                              Bobby L. Rush
Ranking Member                                Ranking Member
                                                        Subcommittee on Energy and Power

Related Documents: 

Letter to Chairmen Fred Upton and Ed Whitfield from Ranking Members Henry A. Waxman and Bobby L. Rush (July 23, 2014).