By Christie Whitman
NJ.com
Feb. 19, 2024

New Jersey’s former governor says the effects of climate change are already being seen in communities across the state, and these realities are translating to economic consequences.

Like governors before me, I fought hard during my time as New Jersey’s 50th governor to preserve our state’s beautiful open spaces, clean up industrial contamination, and reduce automotive air pollution – all in an effort to protect the health and safety of our communities and the vibrancy of our ecosystems.

Later, as administrator of the U.S. EPA, I saw firsthand the impacts of strong, pragmatic environmental policies and grew firm in my belief that a thriving economy is dependent on a stable, healthy environment. Climate change is an existential threat to our coastal state, and that growth in New Jersey’s green economy opens up undeniable opportunity for us all.

States have long been the laboratories of democracy, and New Jersey has a long history of working to protect our environment. Over the last six years, Gov. Phil Murphy has continued that legacy by making strides in emission reduction, solar development, energy efficiency, and the protection of our inland communities from flood risk. Bolstered by the Biden administration’s unprecedented federal investment in climate action, our considerable progress will only accelerate in the decade to come.

Despite New Jersey’s momentum, climate action remains challenging. A collective transition away from a fossil-fuel-based economy requires creativity, innovation, and courage in the face of those who would thwart our progress in favor of the status quo. And while the evidence of the growing climate crisis is becoming more tangible, the window for action is quickly closing.

The effects of climate change are already being seen in communities across the state, and these realities are translating to economic consequences. Climate-related risks are changing insurance markets, leading to reduced coverage and greater financial risks for property owners.

Severe thunderstorms accounted for up to $34 billion in losses in the first half of 2023 in the U.S. The Council on Foreign Relations points to the shifts in the insurance markets in an August 2023 article, saying, “Private companies have increasingly reduced coverage, concluding that the risks — and potential losses — threatened by climate change outweigh probable profits.”

As mortgage lenders depend on insurance coverage to mitigate their risk, it is unclear what impact these changes will have on lending and property markets in general. In 2021, a Mortgage Bankers Association Report stated that climate change may increase mortgage default and prepayment risks, as well as trigger adverse selection in the types of loans that are sold.
The day-to-day costs are mounting for New Jersey households as well. The NJBPU’s 2022 Rate Payer Impact Study found that customers adopting clean energy technologies, such as energy efficiency, electric vehicles, and home electrification by 2030 will see their energy costs decrease by 16% from 2020. Customers who do not make these investments will see cost increases of an average of 17% in that same timeframe, as fossil fuel costs increase globally.

The impacts of climate risk also threaten local government revenues. Hurricane Ida primarily impacted riverine communities in New Jersey, and NOAA estimates New Jersey faced $8-10 billion in damages from that storm.

Most importantly, the climate crisis has begun to impact New Jerseyans’ health. Climate change has wide-ranging impacts on human health, such as exacerbating respiratory conditions and cardiovascular disease in vulnerable populations, causing heat-related stress. Between 2004 and 2013, hospitalizations during the state’s warmest months increased by over 150 percent. Heat-related mortalities are projected to double over the next decade as a result of more frequent elevated temperatures, increasing the strain on New Jersey’s health care system and costing billions in public health care dollars.

In recognition of the challenges before us, and the urgent call to action, Governor Murphy continues to pursue a just and well-managed transition to clean energy in New Jersey, while working to broaden access to the vast benefits of a growing green economy.

Governor Murphy and I are not from the same party, but developing cleaner sources of energy – such as well-planned wind power projects – is something all New Jerseyans can support. Having proudly served as governor of this great state, I am confident New Jersey will tap into the American spirit of progress and innovation, and that we will all work together to solve our biggest and most urgent collective challenge.