IBC commends federal budget plan

The Insurance Bureau of Canada (IBC) has responded favourably to the first federal budget delivered by Finance Minister Chrystia Freeland, praising the federal government’s investments into climate adaptation measures.

The federal budget will allocate resources to help implement its National Action Plan on Flooding. A breakdown of the budget items under the plan includes:

• $1.4 billion over 12 years to extend the Disaster Mitigation and Adaptation Fund with almost half dedicated to smaller-scale projects
• $63.8 million over three years to Natural Resources Canada, Environment and Climate Change Canada, and Public Safety Canada to work with provinces and territories to complete flood maps for higher-risk areas
• $4.4 billion to the Canada Mortgage and Housing Corporation for interest-free loans up to a maximum of $40,000 to help homeowners complete deep home retrofits for energy efficiency and climate resilience
• $200 million over three years, starting in 2021–22, to Infrastructure Canada to establish a Natural Infrastructure Fund to support natural and hybrid infrastructure projects. This would help to improve well-being, mitigate the impacts of climate change and prevent costly natural disasters.

Finance Canada has also allocated funding for additional climate adaptation measures, such as:

• $28.7 million to improve wildfire risk mapping in northern Canada
• $1.9 billion to support provincial and territorial emergency management through Disaster Financial Assistance Arrangements
• $11.7 million over five years so that the Standards Council of Canada can continue updating standards and guidance in priority areas such as flood mapping and building in the North. This would help communities to plan and build roads, buildings and other infrastructure that is more durable and resilient to a changing climate.
• $22.6 million over four years, starting in 2021–22, to Infrastructure Canada to conduct Canada’s first ever National Infrastructure Assessment. The assessment would help identify needs and priorities for Canada’s built environment.
• $36.2 million over five years, starting in 2021–22, to Environment and Climate Change Canada to develop and apply a climate lens that ensures climate adaptation and mitigation considerations are integrated throughout federal government decision-making.

The budget also commits to executing the recommendations made by the Task Force on Climate Related Financial Disclosures, by committing all Crown corporations to disclose their transition, liability, and physical risk by 2024.

IBC issued a statement praising all these climate-related commitments.

“The federal budget proposes to invest in a wide range of climate adaptation measures that will keep Canadians safe from the escalating floods, wildfires, wind and hailstorms that are already happening as a result of climate change,” said IBC vice president of federal affairs Craig Stewart. “In particular, we applaud the signature investments that will increase resilience to flooding, which is our greatest climate-related threat.”