The Financial Services Regulatory Authority of Ontario says that climate change risks could add more than $4 billion annually to the cost of maintaining the province's public infrastructure.

However, the Office of the Financial Accountability says that provincial and municipal governments can reduce these costs by making roads, hospitals, schools, and stormwater pipes more resilient to extreme heat and heavy rainfall.

The report estimates that climate risks will add $4.1 billion annually to public infrastructure costs if governments do not adapt, based on a scenario where global temperatures rise to about 2.3 degrees Celsius above the pre-industrial average.

These costs are expected to fall to about $3 billion annually if the province and municipalities proactively make all public infrastructure climate-adaptive by 2070.

The Food and Agriculture Organization says there is widespread interest in its report from governments and organizations due to its unique efforts to reconcile climate risks and expected costs.

The report released today also confirms that the impacts of extreme heat and heavy rainfall are expected to cost municipalities, which manage the majority of the infrastructure portfolio in Ontario, four times the cost of the provincial government.