Climate Change Creates Massive Financial Risks for Government: GAO

It turns out that climate change is expensive business for our government, according to a new report by the Government Accountability office. Financial risks related to the phenomenon such as property damage, losses through flood insurance and crop support programs have caused officials to take a second look at the issue.

The nonpartisan investigative agency released its findings on Thursday, proclaiming that the federal government is not currently well positioned to address the financial implications of climate change. Since the government owns extensive infrastructure and provides costly emergency aid after natural disasters, it has set itself up for a wealth of expenses.

In particular, the GAO noted that the Federal Emergency Management Agency is on the hook for more than $80 billion in aid for disasters that were declared during the 2004 to 2011 fiscal years. That's not accounting for the addition $60 billion in aid that is currently being asked for to help victims on the East Coast recover from Hurricane Sandy.

What should the government do to help curtail these expenses? The report has a few suggestions. It recommends that the government develop a better understanding of how the changing climate will affect the federal flood and crop insurance programs. In this way, the government may be able to institute policies that could help save money. In addition, it recommends that the government develop better criteria for FEMA in order to assess a jurisdiction's ability to recover on its own after a disaster rather than seeking aid from federal government sources.

Perhaps one of the most glaring issues, though, is the potential issues with the polar-orbiting weather satellites that can provide a global perspective for researchers. The National Oceanic and Atmospheric Administration admitted that there could be a gap of 17 to 53 months between the time that the current afternoon satellite fails and the time when a new one can be launched as a replacement. This would result in less accurate and timely weather forecasts--a serious issue if extreme weather continues to rise.

As weather patterns change, new and unforeseen problems could arise as climate change continues. In total, the GAO report listed 30 federal programs and operations on the high-risk list.