CCC: Climate Risks Threaten UK’s Corporate Infrastructure

The UK is at risk from higher temperatures, flooding and drought. The Climate Change Committee’s (CCC) “Fourth Independent Assessment of UK Climate Risk” lists better cooling, stronger flood protection and a reliable water supply as the main priorities.

If action is not taken soon, these risks could cause serious problems. By 2050, 92% of homes might overheat and summer water shortages could be more than five billion litres each day.

All new homes need to use water efficiently to deal with growing water risks. Investing in different crops and storing water on farms will also help lower drought risks and support farming.

Peak river flows could go up by as much as 45%, so the UK will need to spend £1.6bn to £2.2bn (US$2.14bn to US$2.94bn) each year on flood protection. This money should go toward long-term solutions, such as strong flood barriers, robust emergency plans and natural options like wetlands.

The CCC says that higher wildfire risks mean the UK will need plans costing about £38m (US$51m) a year through the 2040s. The committee also wants new rules to protect ecosystems and ensure that all trees planted by 2030 can withstand future climate change.

“This is really a time for politicians of all parties, officials at all levels of government and business representatives from across the economy to take stock and reflect on the scale of the adaptation challenge facing the UK,” says Nick Molho, Head of Sustainability Advocacy for the UK and the EU at Aviva.

“Taking action on adaptation is not a niche topic; it is absolutely essential to support the well-being of people up and down the country and ensure that the UK’s core infrastructure and supply chains can keep on functioning properly in a rapidly changing climate.”

Future-ready, resilient infrastructure

With climate change putting key infrastructure, energy systems and buildings at risk, regulators and the government need a clear plan to manage interdependencies among these systems and avoid major problems.

The committee suggests working together on response plans, conducting risk checks and ensuring everyone understands their responsibilities to protect the country’s infrastructure.

The UK’s new 10-year infrastructure plan is a chance to ensure new projects can withstand climate risks, especially amid big investments in transport, water and energy. The government will need to set clear and consistent standards for resilience.

The committee wants the government to set a national limit for how hot workplaces can get to protect workers. It also suggests using cooling solutions, such as green shading, heat pumps and air conditioning in public buildings.

“The headline message is unambiguous,” says Emma Howard Boyd, Chair of the National Heat Risk Commission.

“The climate the United Kingdom plans for is not the climate the United Kingdom now has and the gap between the two is widening.

“The cost of acting is materially lower than the cost of waiting. The Committee estimates that investment of around £11bn (US$14.7bn) a year, split broadly evenly between public and private sources, is what stands between us and damages projected to reach between one and 5% of UK GDP by 2050 under a two-degree warming level.”

Cost of inaction

The CCC says that waiting to act will cost more than taking action now. If the UK does not become more resilient, climate change could lower the country’s GDP by 1% to 5% by 2050 under a 2°C warming scenario. This could mean yearly losses of £60bn to £260bn (US$80.3bn to US$348bn).

To avoid these losses, the committee says the UK should invest about £11bn (US$14.7bn) each year from 2025 to 2059 with the public and private sectors sharing the cost equally.

This amount is about 2% of the UK’s total investment for 2025. Making these big changes to adapt is cost-effective, as it saves money over time and could bring in tens of billions of pounds each year by preventing serious climate damage.

“Adapting to climate change cannot wait and we have the tools we need,” says Eleanor Johnston, Climate Change Manager at The Wildlife Trusts.

“Nature is our strongest defence against climate change. Nature is not an optional extra – it is a necessity.

"We hope the Well Adapted UK report kickstarts the delivery of change as intended, and the government accelerates work to both support nature and implement nature-based solutions at scale.”