| Adaptation options |
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| Generic examples |
| Invest in insurance to cover unavoidable risks yet retain incentives to adapt. |
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| Use other financial mechanisms that delay, share or lay-off risks (eg. subsidies to offset increased operational costs). |
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| Lease capital goods rather than buying them, and maintenance/service contracts. |
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| Broaden the response community through sharing the responsibility for adaptation (eg. basin wide flood management and managing water resource on a regional or national scale, creating a financial reserve through housing, agriculture or other associations). |
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| Diversify business activity, market, sources of income, location, etc. as a means of spreading the risks (reducing overall exposure to risk). |
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| Specific examples |
| The Housing Corporation is proposing to use insurance or mergers between Registered Social Landlords (RSLs) to spread the financial costs associated with the impacts of climate change between a group rather than have individuals bear the cost. Those Registered Social Landlords (RSLs) with properties at sea level, near the coast, may potentially lose them due to increases in sea level and flooding. At present, insurance will cover the cost. However, if in time insurance is no longer a viable option, the Housing Corporation will seek mergers between RSLs to ‘spread’ the load financially or to write off stock and the grants given to produce it. If stock is written off, this would become an example of retreat and abandon. See Climate SouthWest website for the South West scoping study. |
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