Addressing the evolving climate landscape with the Climate Action & Adaptation Plan

This February, the National Park Service approved a $100 million undertaking to construct a 475-foot bridge over the Pretty Rocks Landslide at Denali National Park. This project is not just a response to a pressing need but also a harbinger of a climate-smart future we should strive for within our community.

The bridge integrates thermosiphons into its structure, a cutting-edge solution designed to strengthen the infrastructure against the escalating threats of permafrost degradation caused by global warming. Separately, due to public demand, policymakers and elected officials in the Fairbanks North Star Borough have been diligently devising the ClimateAction & Adaptation Plan (CAAP) over the past five years. This comprehensive strategy aims to infuse the Fairbanks North Star Borough government's infrastructure with a climate-aware ethos and foster resilience in an evolving climate landscape.

The urgency for such a plan was underscored by the Swiss Re Institute in 2022. This global reinsurer, known for covering catastrophic losses experienced by insurers, like the $1.3 billion in claims it paid to companies to ensure their solvency after Hurricane Ian slammed into Florida,warned that half of our circumpolar infrastructure – an essential support system for Alaskans – faces a substantial risk from accelerated permafrost thaw. This emerging challenge does not simply exacerbate the common strain of infrastructure maintenance but signals an impending climate-driven crisis that mandates immediate action from our leaders.

The repercussions of this environmental hazard stretch far beyond the confines of infrastructure, threatening to upset insurance markets and property values. As insurers grapple with increased climate-induced claims, they now confront a new risk frontier tied to permafrost melting. Should our infrastructure – the vital lifelines of our communities – falter under this strain, a claims surge will inflate premiums and destabilize insurance markets. Concurrently, real estate values will experience a domino effect. Properties connected to or dependent on the endangered infrastructure will decline in value, and all homeowners and investors will be adversely affected.

Whether it is a family home in Alaska's spectacular wilderness and our numerous rural villages, a business property relying on accessible transport links, or our rural resorts at internationally renowned tourist hotspots, the financial and societal implications of permafrost damage will be far-reaching. We have already seen this in communities like Newtok, Alaska, where the federal government had to spend millions to relocate Yup'ik villagers after permafrost melt made Newtok uninhabitable.

Newtok is just the tip of the iceberg. The insurance market disaster in Florida saw the liquidation of six insurance companies, substantial rate increases of up to 40%, and millions in underpaid damage claims. These events are not just limited to Florida. Recently, State Farm announced that it would stop selling property insurance in California due to incessant catastrophe exposure from wildfires, an issue with which we are all too familiar in Alaska, and a volatile reinsurance market. If the conditions in Florida and California serve as a warning, we are likely to find ourselves ill-prepared when disaster hits and our infrastructure begins to crumble and descend into the earth.

Though the CAAP is a promising start, we still have a substantial challenge ahead. Our policymakers and representatives' dedication to shaping this plan is praiseworthy, but we must further shield our infrastructure and assets from the onslaught of climate change. Implementing practical changes, such as appointing a climate change manager responsible for spearheading climate-smart initiatives and securing grants, would inject more funds into our community and open up additional high-quality employment opportunities. Furthermore, reinstating crucial initiatives like the recently slashed emission tracking program should be universally supported and included in the CAAP. Finally, as markets and federal regulations evolve to be more climate-conscious, it is paramount that we lead the charge as a model community. Otherwise, we risk losing out on federal grant programs that could assist us.

I strongly encourage you to reach out to our elected representatives to advocate for a more pro comprehensive CAAP. Your active involvement is crucial in safeguarding your assets, your property and ensuring a stable financial future for your community. Without such action, Fairbanks and adjacent communities risk a collapse of the tax base as properties become prohibitively expensive to insure or entirely uninsurable, while proactive property owners with the means to do so will migrate to safer, more sustainable regions, leaving those who stay behind underwater and in financial hardship due to owning properties with little to no market value.

Michael Hendrix earned a Master's degree in Public Administration from Cornell University in May 2022. While at Cornell University, he focused his coursework on disaster risk management and program evaluation. He moved to Fairbanks in November of 2022. Opinions expressed in the community perspective are solely his own.