The nation's three biggest cities, New York, Chicago and Los Angeles, are setting the tone for effective climate-change management, according to Kroll Bond Rating Agency.
"[They] provide an interesting illustration of a concerted response to climate challenge," Kroll director Patricia McGuigan and senior managing director Karen Daly said in the report.
"Climate change is not one size fits all," they wrote, noting the disparate challenges of the three cities.
All three face temperature rise, while Los Angeles must cope with drought and wildfires, and flooding and sea-level rise burden New York.
"Aside from extreme events, climate change evolves slowly but has been accelerating. In many areas of the nation, the impacts of climate change pose longer-term risk," McGuigan and Daly said.
Kroll rates the general obligation bonds of Los Angeles and Chicago AA and A, respectively. It does not rate New York GOs.
Long-term risks, the report said, require effective management. "Communities with vibrant economies will likely have both better market access for capital and greater resources to fund needed planning and adaptation projects for their respective climate risks."
Kroll has been working with Princeton, New Jersey-based research organization Climate Central.
"People should read the report," said resilience expert Alan Rubin, a principal at law firm Blank Rome LLP. "They're trying to use science not to bludgeon people but use science to say these problems are out there. It reflects the thinking of cities now about climate change."
The three cities, said Kroll, are positioning against becoming "heat islands." All expect to have high heat days beyond what Phoenix experiences now by 2020.
"Local governments are the first line of defense in protecting their communities against climate events," the report said.
Los Angeles is using cool roofs, cool pavements and planting trees. Chicago expects its large-scale smart meter program to counter high air-conditioning use. New York's strategic plan identifies coastal risk and extreme heat as significant threats.
"There's a need for restructuring and planning, not just for bonding and grants, but how to find money," Rubin said. "Miami has to counter a strong surge.
"That's different from what they're looking at in Iowa, which is flooding. There are fires in Northern California, and the petrochemical companies and tankers in Texas."
In response to record drought, Los Angeles Mayor Eric Garcetti ordered an increase in water security and less water use. The city aims to recycle all its wastewater by 2035.
In addition to public safety hazards, wildfires in Southern California threaten the tax base through property destruction. "Firefighting budgets are more likely to have unbudgeted spending needs for extreme events," Kroll said.
New York's strategic plan features numerous coastal defense measures such as green infrastructure, wastewater system upgrades and construction of overflow retention tanks. It is also working with the Federal Emergency Management Agency to reassess flood maps.
In addition, New York has begun a long-term study of risks to the Manhattan tip in the 2100s.
