America’s Most Sustainable States: Nevada Leads the Way, While Others Face Climate Challenges
In a time of escalating climate change, it’s not just the environment that’s feeling the heat. Businesses and homeowners alike are increasingly bearing the financial brunt of extreme weather events and the rising cost of climate-related insurance. While some states are well-positioned to weather the storm, others face significant vulnerabilities.
Key Takeaways:
- Climate Risk is a Major Business Factor: Companies are paying close attention to climate risk, resilience, and sustainability when deciding where to locate, and CNBC includes these factors in its America’s Top States for Business ranking.
- Infrastructure is Key: Investing in robust infrastructure that can withstand climate change is crucial. The Bipartisan Infrastructure Law allocated $550 billion towards hardening roads, bridges, and other structures.
- Renewable Energy is Vital: States with high renewable energy adoption rates are better equipped to navigate climate change. Nevada, with its abundant solar and geothermal resources, leads the nation in sustainable energy production.
- Vulnerability Varies: While some states like Nevada and South Dakota boast high renewable energy adoption and minimal climate-related risks, others like Oregon and Washington require comprehensive strategies to mitigate future challenges.
Investing in Resilience: A Fiscal Necessity
From rising insurance premiums to the need for extensive infrastructure upgrades, climate change is already impacting businesses and individuals across the country. "The insurance companies are responding to the fact that we’re seeing more frequent and more severe climate events and the fact that they’re paying out more than they’re bringing in," explains Jeremy Porter, head of climate implications for First Street Foundation.
The Bipartisan Infrastructure Law has made significant investments in climate-resilient infrastructure, but future measures will need to be even more substantial. "Resilience is something that no one, no matter where they stand, is going to be against, because it’s what they do in their own personal lives when they have to make a decision on a car or a decision about a house," states Maria Lehman, director of U.S. infrastructure for global engineering firm GHD. "There is a fiscal cost over the asset if you don’t do it right."
America’s Most Sustainable States: A Closer Look
CNBC’s America’s Top States for Business ranking includes Infrastructure as a heavily weighted category, considering factors like:
- Properties at Risk: Percentage of properties in a state at risk of major damage from flooding, extreme heat, wildfires, and wind in the next 30 years (data provided by First Street Foundation).
- Climate Extremes Index: National Oceanic and Atmospheric Administration (NOAA) data on extreme weather for primary geographic regions within each state.
- Renewable Energy: U.S. Department of Energy data on renewable power generation.
Here’s a closer look at the top 10 states, highlighting their strengths and challenges:
10. Oregon – A Leader in Renewables, Facing Climate Challenges
Oregon, with its impressive renewable energy portfolio (over two-thirds of its power comes from renewable sources), is well-positioned to address climate change. However, the state is not immune to extreme weather events like winter storms, wildfires, and coastal erosion. "The Beaver State is no stranger to climate issues, including sometimes intense winter storms, wildfires, and more. But the state is reasonably well equipped to handle them," CNBC reports.
9. Arizona – A Reliable Grid, But High Heat Risks
Despite extreme desert heat and the challenges it presents, Arizona boasts a reliable power grid and low flood risk. However, its reliance on fossil fuels and a low percentage of renewable energy generation raise concerns about future sustainability.
8. Washington – Ambitious Goals for a Green Future
Washington is a leader in renewable energy, with nearly three-quarters of its power coming from renewable sources. The state is committed to a green future, with ambitious goals to eliminate its reliance on fossil fuels by 2050, but faces challenges related to a large portion of its properties at risk of significant climate-related damage.
7. New Mexico – Recovering From Wildfires, Embracing Resilience
New Mexico is still grappling with the aftermath of the devastating Calf Canyon/Hermits Peak wildfire, the largest in state history. However, the state has developed a comprehensive Climate Adaptation and Resilience Plan, a crucial step in mitigating future risks.
6. Nebraska – Minimizing Risk But Facing Wildfire Threats
Nebraska’s heartland location shields it from some of the worst climate change impacts, but the state is not free from environmental challenges, particularly wildfires. Experts highlight the increasing size and duration of Nebraska’s fire season, raising concerns about future risks.
5. Colorado – Sustainability Champion with Growing Challenges
Colorado has positioned itself as a sustainability leader, with a goal of achieving 100% renewable energy by 2040. The state faces challenges related to wind, wildfire, and heat risks but is well-equipped to navigate these challenges with its climate-focused initiatives.
4. California – Leading in Renewables but Facing Complex Risks
California, while facing significant climate-related risks, has made substantial progress in transitioning to renewable energy, boasting one of the highest renewable energy adoption rates in the nation. "Despite being the second-largest energy consumer after Texas, California is the fourth-lowest per capita," CNBC reports.
3. South Dakota – Abundant Wind Power, Low Climate Risk
South Dakota, with its low population density, faces minimal property risk from climate change. The state leads the nation in wind power generation, showcasing its commitment to renewable energy, but still faces challenges related to climate extremes.
2. Idaho – Hydropower Powerhouse with Climate Imperatives
Idaho, heavily reliant on hydropower, holds a strong position in renewable energy. While a large percentage of its properties are susceptible to climate risk, the danger of flooding is relatively minimal, but the state faces challenges related to increasing drought conditions.
1. Nevada – America’s Most Sustainable State:
Nevada, with its abundant sunshine and geothermal resources, is America’s most sustainable state. The state is making strides in solar and geothermal energy development, and despite being susceptible to extreme heat, it faces minimal risks from other climate change threats.
Conclusion:
Across America, the reality of climate change is undeniable. Recognizing and mitigating these risks is not only about protecting the environment; it’s about ensuring a sustainable future for businesses and individuals alike. While some states are leading the way in sustainable solutions, others have a lot of ground to cover. The key takeaway is clear: investing in climate resilience and renewable energy is not a luxury, but a fiscal imperative for all states. It’s time for America to embrace a sustainable vision for the future.
