According to a report from the U.S. Treasury Department, more than half of the U.S. counties face heightened future exposure to at least one of three climate hazards due to climate change.
The report, The Impact of Climate Change on American Household Finances, prepared in consultation with members of the Financial Literacy and Education Commission, found that the counties faced threats due to flooding, wildfire, or extreme heat. The study also found that an estimated one-fifth of all U.S. counties face elevated vulnerability and elevated future exposure to those same threats.
“Severe flooding, wildfires, and extreme heat are imposing significant financial burdens on households across the country. This has been highlighted by recent events such as this summer’s wildfires that blanketed numerous U.S. cities with poor air quality. Underserved communities are particularly hard-hit by such events,” said Assistant Secretary for Financial Institutions Graham Steele. “This report offers both consumers and policymakers strategies to mitigate challenges faced by communities.”
The report, officials said, provides a resource for policymakers and consumers for evaluating the impacts of climate change on household finances. It also recommends steps to prepare for, respond to and recover from climate-related shocks and stresses.
Officials said the report identifies certain populations and place that face exacerbated financial harm due to this vulnerability and exposure to extreme weather events and conditions. While many households are affected by climate hazards, the report said, certain households are particularly susceptible to experiencing financial strain including households headed by outdoor workers, single-parent households and lower-income households.