With Earth Day a week away (Monday, April 22) there is a greater focus on climate change and the environment. According to Ceres, a nonprofit organization mobilizing business leadership on climate change, a growing chunk of American tax dollars is footing the bill for increasing floods, fires, droughts and other climate-related changes. Ceres compiled data showing rising costs to three federal programs, as well as growing financial exposure for state taxpayers in hurricane-prone states.
“Climate change is fundamentally changing the United States, and American taxpayers are paying a huge price for it,” said Ceres President Mindy Lubber. “The cost of withered crops, submerged streets, hurricane damage and wildfires eventually comes out of our own wallets. Crop insurance losses from last year’s drought alone cost every person in America $51.”
The National Flood Insurance Program (NFIP) is staggering under massive losses after Hurricane Sandy, which triggered more than 115,000 new claims in just the first two weeks after the storm. Although NFIP collects about $3.5 billion a year in premiums, the amount of claims the agency has paid out has exceeded the amount of premiums collected in four of the past eight years. Last year’s losses in Sandy’s wake are expected to approach $8 billion.
“That’s $25 for every American, and that figure doesn’t even include the $50 billion of disaster relief that Congress approved in January for Sandy-impacted states,” Lubber said. Continue reading