Navigating Personal Finance in an Era of Climate Change
Living alongside a personal finance journalist, discussions frequently revolve around diversification, risk management, prudent investing, and the importance of delayed gratification.
Therefore, it was unsurprising when my spouse began posing pertinent questions several years ago regarding sound real estate decisions in the context of a warming planet and increasingly severe weather events.
Her inquiries were valid. Government modifications to flood maps can significantly impact property values. Insurance providers are also strategically withdrawing coverage from entire regions.
Residing in Brooklyn, I had often considered the potential ramifications of a storm equivalent to Hurricane Sandy in 2012, but with triple the intensity. While our residence is not in a flood-prone zone and our apartment offers considerable elemental protection, the question remained: could a future “storm of the century” render the city uninhabitable for an extended period?
Another complexity arose: like numerous Americans, we have benefited from long-term homeownership during a period of rising housing prices. Consequently, our home equity constitutes a substantial portion of our overall net worth. Our financial stability is significantly tied to this single property – perhaps excessively so.
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Diversification and risk remain paramount considerations.
However, in light of my wife’s questions, identifying suitable alternative locations – if not immediately, then in the foreseeable future, as a secure, climate-resilient haven – was not immediately clear.
A critical gap existed: no readily available ratings or rankings of communities based on future water availability, projected temperature increases, or anticipated flood and fire hazards.
Addressing the Information Gap
As a professional dedicated to providing practical information, this absence of resources was concerning. Subsequently, the recent wildfires in Los Angeles underscored the urgency of this issue. Following the widespread devastation, my colleague Tara Siegel Bernard and I collaborated to develop a guide to climate-conscious home buying, which we published this week. This resource can be utilized to evaluate the current risk level of your own home or community.
My reporting partner, Tara, currently rents in Brooklyn, a decision that may prove to be the most astute long-term strategy. Potentially, shifting the burden of climate-related property exposure to a landlord is a prudent approach.
Nevertheless, even Tara dedicates personal time to searching online for a climate-resilient retreat for her family. Our collaborative process involved posing numerous questions to each other and leading experts nationwide. Ultimately, our guide addresses approximately 65 key inquiries, directing users to resources that can assist in finding tailored answers for their specific community.
Some pivotal questions that emerged included: Will insurance policies cover mudslides? And how can one effectively assess the complex financial circumstances of rapidly expanding state-backed insurance providers? In states like California and Florida, these entities were initially intended as insurers of last resort, available when commercial providers declined to underwrite residential properties. They have since grown into massive – and potentially unstable – entities.
As climate change disrupts state insurance markets, political factors are increasingly influential. While it is provocative to speculate when Governor Ron DeSantis might require a statewide income tax to support Florida’s home insurance sector, local politicians often wield control over street-level infrastructure projects critical for property protection. Understanding their priorities is essential.
Home Hardening and Climate Resilience
What role does “micro-hardening” play in enhancing a home’s weather resistance – including roof replacements, landscaping modifications, and reinforced garage doors? Indicators of climate preparedness are increasingly evident in real estate listings. Our guide is designed to assist in discerning proactive measures taken by homeowners. Many properties remain vulnerable to increasingly severe weather conditions.
However, not all properties, nor all locations, are equally susceptible. I have long entertained the notion of purchasing land in Minnesota’s lake region and distributing parcels among close associates. However, hail risk in this region is considerable, according to FEMA maps – a crucial starting point for any thorough research, assuming the current administration in Washington maintains their accessibility. Maine and western Massachusetts also present promising alternatives.
Individual risk tolerance varies. And while conventional personal finance principles advise against considering a home as an investment, home equity undeniably represents a significant asset. Millions of Americans face concentrated financial risk in their primary residence.
My own portfolio is no exception. This guide represents a resource for myself – and anyone seeking greater peace of mind, residing in a community or region demonstrating maximum resilience.
Climate Law
Greenpeace Verdict: $660 Million and the Implications
Yesterday, it was reported that Greenpeace is mandated to pay over $660 million to the company responsible for constructing the Dakota Access Pipeline. This verdict was delivered by a jury in Mandan, North Dakota, following a three-week trial initiated by Energy Transfer. The lawsuit alleged that Greenpeace played a significant role in instigating protests against the Dakota Access Pipeline a decade prior.
Greenpeace faced multiple allegations, including trespassing, defamation, and conspiracy.
The substantial financial penalty has caused widespread concern among Greenpeace supporters. Rebecca Brown, president of the Center for International Environmental Law, described the case as “a textbook example of corporate weaponization of the legal system to silence protest and intimidate communities.”
Energy Transfer’s lead attorney, Trey Cox of Gibson, Dunn & Crutcher, hailed the verdict as a justified outcome for law enforcement personnel involved in managing the protests and for the affected local community. The protests occurred approximately 45 minutes south of the courthouse, within and surrounding the Standing Rock Indian Reservation.
Several key questions remain under scrutiny:
Potential Overturn of the Verdict
Three Greenpeace entities were named in the legal action: Greenpeace Inc. and Greenpeace Fund, operating as Greenpeace USA, and Greenpeace International, based in Amsterdam. Greenpeace USA had previously warned that a $300 million verdict could force the organization to cease operations. The jury ultimately held them liable for approximately $530 million.
Greenpeace asserts that the precise financial figures are still pending finalization by the judge. The organization has announced its intention to appeal the verdict to the North Dakota Supreme Court, where a reversal is possible.
Outside the courthouse yesterday, prominent First Amendment lawyer Martin Garbus, who observed the trial, expressed apprehension that an appeal reaching the U.S. Supreme Court could be leveraged “to dismantle” the landmark 1964 New York Times v. Sullivan case, which significantly strengthened free-speech protections.
Impact on Future Protest Movements
Greenpeace and its advocates contend this legal outcome will significantly deter future protest activities. Greenpeace maintains its involvement in the demonstrations led by the Standing Rock Sioux Tribe was solely supportive.
Everett Jack Jr., the lead attorney representing Greenpeace, argued that Energy Transfer sought to assign responsibility to his client for all events transpiring during months of extensive and tumultuous encampments involving thousands of individuals.
Greenpeace, due to its recognizable brand and relatively substantial budget, may have been perceived as a vulnerable target. Smaller activist organizations would likely lack the necessary resources to contest such legal challenges.— Karen Zraick
Renewable Energy
Satellite View: Global Expansion of Clean Energy
A recent analysis shared with The New York Times reveals the rapid global adoption of solar and wind energy, now increasingly cost-effective and reliable.
To monitor these developments, researchers developed Global Renewables Watch, a project that maps all onshore wind farms and large-scale solar installations worldwide. Utilizing artificial intelligence and high-resolution satellite imagery, it generates a continuously updated “living atlas.”
This collaborative effort aims to track the temporal progression of wind and solar energy deployment, providing planners with enhanced insights for strategic development of new clean energy projects, both large and small. — Mira Rojanasakul
Climate Data
Decade of Heat Records: Earth’s Ten Warmest Years
The World Meteorological Organization reports that with the inclusion of 2024 as another record-breaking year for global temperatures, the preceding ten years constitute the ten hottest years in nearly two centuries of climate record-keeping.
“This unprecedented occurrence marks the first instance since records began that all ten warmest years have occurred within the most recent decade,” stated Chris Hewitt, director of the W.M.O.’s climate services division. — Delger Erdenesanaa
Further Climate News:
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The Washington Post reports that a massive iceberg, approximately 19 miles in length, fractured off the Antarctic ice sheet in January. This event exposed a section of ocean to daylight for the first time in decades, revealing a diverse ecosystem of giant sea spiders, octopuses, ice fish, corals, and sponges.
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According to Reuters, President Trump is expected to sign an executive order designed to delegate disaster preparedness responsibilities to state and local administrations, furthering his agenda to reorganize the Federal Emergency Management Agency.
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Reuters also reports that Amazon will initiate the sale of carbon credits to its suppliers, business clientele, and other corporations.
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Heatmap News investigates the disruptive technological advancements of BYD, the Chinese automotive manufacturer.
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