To Wall Street, which sorts risk by its ability to maximize profit, “adaptation”
to climate change simply means learning how to profit from it. And there are a
variety of ways of doing so—for example, rebuilding after flooding offers a
boost for the construction industry as does the building of coastal defenses
against rising seas, already occurring along the East Coast of the United
States. Miami is spending $400 million for pumps and other infrastructure to
prevent flooding. Hoboken, New Jersey, received a $230 million federal grant to
shore up protections, and Norfolk, Virginia, received $100 million from the
federal government to carry out a plan to protect neighborhoods from flooding.
All of this spending adds to the measured national economic growth (GDP) and
thus is seen as positive—even when the reason is negative.
[...] One of the growing areas of financial speculation is the issuance and
trading of so-called catastrophe bonds, referred to as cat bonds, offering
insurance against catastrophic weather events as well as other types of
disasters such as wildfires. The $72 billion in cat bonds in 2016 is expected to
double in the next few years.