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Potential C2F Project: Adaptation

Overview

  • A water utility is investing in a new reservoir
  • Based on climate models, predictions droughts are expected, and it is determined that the water reservoir needs to be larger than it would be based on historical data

Barriers

  • Cost barrier – regulator not willing to allow utility additional costs of the expanded reservoir from the rate payers
  • Climate change adaptation costs which can be reduced by lower cost debt

C2F Solution

  • The Canadian Climate Fund can provide senior debt at below market rates for the amount equal to the incremental costs of the expansion needed to adapt to climate change

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