Climate risk - Challenges and Opportunities for Engineers
By Hong Kong Economic Times
Human vulnerability to climate change has never been more urgent, with the concept of “climate risk” evolving into a key concern within discussion on sustainable development, particularly in fields like engineering and finance. Climate risk refers to the potential negative consequences caused by climate change. These impacts can affect a wide range of areas, including risks to people’s lives, economic activities, social and cultural assets, infrastructure, as well as risks to ecosystems and biodiversity.
A climate risk has three parts, namely hazards (like storms or heatwaves), exposure (people or places at risk), and vulnerability (how easily something is damaged). For example, to an agricultural area that is potentially affected by drought, the hazard is the drought itself, which could result in yield losses.1 Or, a coastal city faces floods if it has weak defenses.
To manage and assess climate risks, international frameworks and tools are widely used. The United Nations’ Intergovernmental Panel on Climate Change (IPCC) provides scientific reports that outline the potential impacts of climate change.
With rising greenhouse gas emissions and global temperatures, the changes in the global climate system is disrupting Earth’s weather patterns and natural environment, threatening the ways humans live and work. Therefore, understanding and measuring climate risk is important for engineering experts to plan for a sustainable future and create solutions that minimise its impacts.
Human’s vulnerability to climate change has never been more urgent
Physical and transition risks
Climate risks are generally divided into two main categories: Physical risks and transition risks.
Physical risks are the direct impacts of climate change. These include extreme weather events like floods, hurricanes, and heatwaves, as well as long-term changes such as rising sea levels and desertification. Transition risks, on the other hand, are associated with the economic and social shifts needed to make the transition to a lower-carbon economy.2 For example, stricter government regulations on carbon emissions, shifts in market preferences, and the adoption of new technologies can create financial and operational challenges for industries.
Physical risk can be acute or chronic. Event-driven incidents such as increased severity of extreme weather events (cyclones, hurricanes or wildfires) can be acute physical risks as they happen suddenly. These events can destroy infrastructure and can stop cities from working. In 2017, the Super Typhoon Hato struck Macao with destructive winds and coastal flooding, causing widespread damage and severe flooding. The event led to a minimum of ten fatalities and over 240 injuries, with direct economic losses surpassing 8.3 billion MOP. The impact was also extended to the Guangdong, Guangxi, Fujian, Guizhou, and Yunnan on the Chinese mainland, where approximately 740,000 individuals were affected, and more than 6,500 homes were destroyed, resulting in direct economic losses exceeding 27.2 billion yuan.3
Longer-term shifts in climate patterns, such as sea level rise and changes in precipitation, are chronic physical risks. These risks are especially challenging because they slowly degrade materials, reduce efficiency, and permanently change the environment that infrastructure was designed for. For example, sea-level rise can make coastal land sink, and longterm heat can cause railway tracks to expand and buckle and damage road surfaces over time.
Transition risks are the financial and reputational challenges that companies may face as the world moves toward a lowcarbon economy. These risks arise from the changes in policy, technology, and markets that are required to address climate change. For example, new government regulations or shifts in consumer preferences can pose threats to organisations that are slow to adapt. Increased pricing of carbon emissions and reporting obligations will also increase the operating costs of a business.
The complexity of climate-related risks lies in their diversity and interconnected nature. Physical and transition risks often do not exist in isolation but intertwined with each other. For instance, extreme weather events may prompt governments to implement stricter building regulations, thereby intensifying transition risks for businesses. In general, the physical and transition risks brought by climate change are redefining the boundaries and responsibilities of engineering. Engineers will have a role to play as they can lead the way in building a better future and help protect people from climate risks. Understanding these risks is crucial for engineers to design climate-resilient projects.
Climate change has highlighted deficiencies in current design as many existing building standards based on 30-50 years of historical climate data fail to reflect future climate scenarios.
Impact of climate change on buildings and infrastructures, and to engineering
Climate change is already affecting our built environment, posing challenges to the engineering industry. With the increase of extreme weather events and the long-term changes in climate, the vulnerability of buildings and infrastructure are becoming more apparent. Many design standards and material performance specifications, developed based on previous climate data, are now facing unprecedented tests due to climate change.
First, structural integrity and transportation networks are facing threats from extreme weather events. Intense cyclones, torrential rainfall, and flooding can cause direct destruction to critical infrastructure, causing extensive economic losses and casualties annually. Coastal regions face vulnerability due to combined impacts of sea-level rise and storm surges, leaving urban infrastructure exposed to progressive erosion and persistent damage.
Meanwhile, rising temperatures and humidity fluctuations significantly compromise construction materials. Concrete structures develop thermal-induced cracking while steel components undergo accelerated corrosion in humid conditions. These phenomena critically undermine structural longevity and safety, making traditional materials and design approaches inadequate.
From an engineering practice perspective, climate change has highlighted deficiencies in current design as many existing building standards based on 30-50 years of historical climate data fail to reflect future climate scenarios. Additionally, rising maintenance costs represent another major challenge for the engineering industry. Post-disaster recovery not only consumes substantial financial resources but may cause prolonged service interruptions, while routine monitoring, anti-corrosion treatments, and adaptive reinforcements are becoming more frequent and expensive due to climate pressures.
How engineering adapting to changing environmental conditions and role of engineers in mitigating risk
Engineering plays a pivotal role in adapting to changing environmental conditions by fundamentally shifting its approach to design and planning, prioritizing resilience, sustainability, and collaboration to protect communities and infrastructure from current and future climate risks. This involves rethinking infrastructure and systems to withstand new climate realities.
Designing resilient infrastructure
A primary focus of this adaptation is on building resilient infrastructure. Engineers are redesigning critical infrastructure to withstand specific climate impacts like extreme weather, sea-level rise, and flooding.
In London, the Thames Barrier, initially built in 1982 to prevent tidal flooding, is an example of the forward-looking mindset of engineering. The project is one of the largest movable flood barriers in the world, spanning 520 meters across the Thames.
Its ten massive steel gates, which normally rest flat on the riverbed, can be raised during flood threats - with each 3,300-tonne main gate standing as high as a five-story building and as wide as Tower Bridge's opening when upright, creating an impenetrable wall against rising waters while maintaining normal river operations when not in use.
While initially designed to provide protection only until 2030, recent analysis confirms it will remain an effective defense against rising sea levels until at least 2060-2070. Defenses west of the barrier will be raised by 2050 to reduce its use, with further height increases needed later. It is also expected that the barrier will close more often to protect against storm surges and a replacement needs to be ready by 2070 as the current barrier may be overtopped.5
Climate-responsive urban planning
This design of resilient infrastructure extends to the urban scale, where engineering is integral to climate-responsive urban planning. Engineers need to rethink city designs to reduce heat islands and improve energy efficiency through solutions such as green roofs and reflective pavements.
The principles of “Green Building Design” is an approach that aims to reduce energy consumption and use environmentally friendly materials, demonstrating a holistic approach to making cities more livable in a new climate regime. By adopting engineering principles to create environmentally responsible structures, this approach focuses on reducing energy consumption, improving indoor air quality, and utilizing eco-friendly materials. Key implementations include green roofs, passive solar heating systems, and energy-efficient HVAC (heating, ventilation, and air conditioning) systems.6
Sustainable water resources management
Another key area of focus is water resource management, where engineers develop strategies and technologies for the efficient use of water. This includes advancing systems for water purification and desalination to ensure a reliable supply.
This proactive management of water is vital for securing water for both growing urban populations and the agricultural sector. The need for adaptation has led to interdisciplinary collaboration. For example, engineers can work with agricultural experts to create innovative solutions such as "climate-smart farming techniques" to maintain productivity despite the challenges of a variable climate.
In Chakwal, a rain-fed agricultural district in Pakistan’s Punjab region, farmers face significant challenges due to unpredictable rainfall patterns and worsening water scarcity due to climate change. Traditionally, they rely on ground water irrigation, leading to resource depletion and high energy costs for pumping.
To address this, the International Water Management Institute introduced soil moisture sensors as part of a water resource accountability program to use sensors to provide real-time data and color-coded indicators on soil moisture levels, helping farmers optimise irrigation timing. In areas where rainfall is unpredictable, these sensors can help enhance productivity and sustainability in farming.7
Developing climate modeling and prediction tools
Engineers can also develop advanced climate models and use simulation tools to make predictions on future climate trends for planning. These models are dispensable for moving from reactive repairs to proactive, evidence-based design.
In particular, with the use of artificial intelligence, engineers can make climate modeling in a more regional accurate and computing efficient way. Compared with traditional methods such as General Circulation Models that simulate the climate of Earth, AI-empowered models can better capture local precipitation extremes.8
Climate risk considerations must be maintained throughout the project's entire lifespan.
Integrating climate risk management in project planning and design
Integrating climate risk management throughout all stages of project planning and design is essential for ensuring long-term sustainability and resilience.
During the feasibility study phase, it is crucial to evaluate project performance under various climate scenarios. This involves using advanced climate models and predictive data to identify potential physical and transitional risks, such as extreme weather events or changing regulatory requirements.
Engineers should also develop "fail-safe" designs that allow specific components to malfunction without causing systemic collapse. Modular design approaches can help enable seamless future upgrades and adaptations to evolving climate conditions. This includes selecting materials capable of withstanding projected temperature increases and changing environmental conditions.
Notably, climate change adaption assessment should be taken at an early stage of project development to make it more effective. This requires appropriate adaptation measures to be implemented from planning, design to operation and maintenance. Climate risks should be evaluated as early as possible because last-minute measures to address climate risks could be more costly and less effective.
Likewise, effective monitoring of climate risk management should also be put into place during construction and operation phases to ensure the effectiveness of the measures.
In general, climate risk considerations must be maintained throughout the project's entire lifespan. This comprehensive approach ensures continuous adaptation to climate impacts and helps prevent premature obsolescence of critical infrastructure.
Regulatory and compliance challenges
When dealing with climate risks, engineers now face more government rules and regulations than ever before. The global push for climate action, such as the Paris Agreement's mandate for progressive greenhouse gas emission reductions, has prompted nations worldwide to implement stringent climate policies. These means that while engineers develop innovative solutions for climate change, they often face significant challenges related to regulations and compliance.
For example, a project might need to pass stringent environmental reviews and restrictions on its carbon emissions. Each country might also have its own standard depending on the project’s location. This can be particularly complicated for international projects that cross borders.
Engineers also need to deal with uncertainties about future regulations. Since climate policies are constantly evolving, engineers need to create flexible designs that can adapt to new requirements to make sure that it suits the needs of the time. Therefore, they must always stay informed about policy changes and be familiar with materials and technologies that will remain acceptable under future climate regulations.
Flooding can cause direct destruction to critical infrastructure, causing extensive economic losses and casualties annually
Case studies of successful climate-adaptive engineering projects
Australia urban cooling strategy
Australia's urban cooling initiatives involve various local and state government strategies and projects focused on mitigating the urban heat island effect, such as increasing tree canopy, implementing cool materials in construction, and using water-sensitive urban design. These efforts aim to replace heat-absorbing concrete and asphalt with vegetation, water, and reflective surfaces.
In Adelaide, the “Cool Road” project was carried out to reduce heat through various cooling strategies and cool road sealants (heat reflective road seal coats) were applied to three different road surfaces to monitor their effects on reducing surface temperature.
As a result, all cool road sealants showed a reduced surface temperature relative to the control asphalt road, which was 8.65°C, 4.95°C and 2.6°C for Treatments 3 to 1 (respectively) during the day and 4.2°C, 2.9°C and 1.5°C during the night. The study also found that widespread use of the most effective sealant could result in a near 1°C surface cooling effect for the whole city.9
Denmark floating islands (Parkipelago)
It is predicted that the rainfall in Copenhagen will increase by 30 percent by the end of this century. After the city was hit by a “cloudburst” — an extreme rain event, in 2011, officials adopted a $1.3 billion public works project called “Cloudburst Management Plan” to complete 300 flood-mitigation projects in 20 years.
One of the projects is a human-made island off Copenhagen’s coast, named Lynetteholm. The island is designed to accommodate around 35,000 residents and will serve as a barrier to shield the city from increasingly frequent storm surges. These extreme weather events are becoming more common due to climate change and rising sea levels. Completion of the project is anticipated by 2070.10
In addition to the islands, the city also made sponge parks and cloudburst tunnels to hold excessive rainwater collected from storm drains during cloudburst events.
Shanghai
As one of the world's largest and most rapidly developing cities, Shanghai faces significant challenges related to climate change. The city is highly vulnerable to sea-level rise, extreme weather events such as typhoons, and increased urban flooding due to its low elevation and high density.
In response, Shanghai has implemented several innovative engineering projects to adapt to these climate risks. Shanghai Tower, the tallest building in China, is a prime example of how climate resilience can be integrated into modern architecture.
Standing at 632 meters, Shanghai Tower is designed to withstand typhoons, extreme winds, and seismic activity. Its climate-resilient features make it a model for sustainable skyscraper design.
Opportunities for innovation solution
Engineers have a fundamental responsibility to prioritise public safety, community health, and social well-being, while also safeguarding the natural environment. Additionally, they must actively encourage safe and healthy practices in professional settings.
While climate change is a pressing challenge for engineers, it also brings new opportunities for innovation and value creation. One major opportunity lies in digital technology. Digital twins – virtual models of real structures – allow engineers to simulate how buildings or bridges respond to floods, heat, or strong winds. This helps improve design before construction begins. AI is also being used to test different climate scenarios and find the most resilient solutions faster than traditional methods.
New materials are another area of progress. Carboncapturing concrete absorbs carbon dioxide during production, reducing emissions. Researchers are also developing low-carbon or even negative-carbon cement. These materials make construction more sustainable while improving strength and durability. At the same time, modular and prefabricated building systems are gaining popularity. These structures can be built quickly and easily, which is especially useful for emergency housing or rebuilding after climate disasters.
Innovation is also changing how projects are funded and managed. The idea of “Resilience as a Service” (RaaS) is emerging, where companies provide ongoing climate protection, such as flood barriers or cooling systems, as a subscription. Public-private partnerships (PPP) are helping to bring private investment into climate adaptation projects, especially in areas where government budgets are limited.
For example, the worldwide challenge of plastic waste is becoming increasingly severe. According to projections from the OECD, the total amount of plastic waste generated in 2026 is expected to reach 1,231 million tons by 2026, three times more than the number recorded in 2019.11
While the plastics industry contributed to 3.4 percent of global greenhouse gas emissions in 2019, the global plastic recycling rates remain critically low at only nine percent. This exposed the severe insufficiency in current waste management systems and the role of engineers to develop recycled plastic materials or upgrade existing systems to provide a more efficient way of waste management.
New fields are forming at the intersection of engineering, climate science, and urban planning. For example, climate engineering and geoengineering explore large-scale solutions like reflecting sunlight to cool the planet, though these remain controversial and require careful study.
Finally, global cooperation is growing. Engineers can join international efforts though global organisations or local groups of a foreign country. These platforms help share knowledge and best practices across countries. International collaboration platforms provide essential opportunities to share knowledge and resources.
By leveraging digital technologies, advanced materials, innovative business models, and international collaboration, engineers can better address climate risks while creating resilient systems.
Engineers can play a pivotal role in managing climate risks for Earth
References
- Europa.eu. (2020). 2.1 Understanding climate risks. [online] Available at: https://climate-adapt.eea.europa.eu/en/knowledge/tools/adaptation-support-tool/step-2-1 [Accessed 15 Oct. 2025].
- US EPA (2022). Climate Risks and Opportunities Defined. [online] www.epa.gov. Available at: https://www.epa.gov/climateleadership/climate-risks-and-opportunities-defined [Accessed 15 Oct. 2025].
- Hong Kong Observatory. (n.d.). Super Typhoon Hato(1713). [online] Available at: https://www.hko.gov.hk/en/informtc/hato17/report.htm [Accessed 15 Oct. 2025].
- Chalmers, P. (2014). Key Findings from the Intergovernmental Panel on Climate Change Fifth Assessment Report Implications for Buildings. [online] University of Cambridge. Available at: https://www.cisl.cam.ac.uk/system/files/documents/IPCC_AR5__Implications_for_Buildings__Briefing__WEB_EN.pdf [Accessed 15 Oct. 2025].
- ICE (2024). What Is The Thames Barrier And How Was It Built? [online] Institution of Civil Engineers (ICE). Available at: https://www.ice.org.uk/what-is-civil-engineering/infrastructure-projects/thames-barrier [Accessed 20 Oct. 2025].
- Euroengineerjobs.com. (n.d.). The Role of Engineers in Climate Change Mitigation and Adaptation | EuroEngineerJobs. [online] Available at: https://www.euroengineerjobs.com/article/858/the-role-of-engineersin-climate-change-mitigation-and-adaptation [Accessed 18 Oct. 2025].
- Fatima, J. (2025). Smart irrigation transforms water management for farmers in Pakistan. [online] International Water Management Institute (IWMI). Available at: https://www.iwmi.org/blogs/smart-irrigationtransforms-water-management-for-farmers-in-pakistan/ [Accessed 20 Oct. 2025].
- Jaman, T. (2025). Next-Generation Climate Modeling: AI-Enhanced, Machine-Learning, and Hybrid Approaches Beyond Conventional GCMs. Environmental and Earth Sciences Proceedings, [online] 34(1), 15., pp.15–15. doi: https://doi.org/10.3390/eesp2025034015.
- Report for the Department for Environment and Water, Climate-KIC Australia and the City of Adelaide Cool Road Adelaide Project. (2020). Available at: https://hdp-au-prod-app-adl-ouradelaide-files.s3.apsoutheast-2.amazonaws.com/9317/1749/1372/Cool_Road_Adelaide_Report_Final.pdf [Accessed 1 Nov. 2025].
- Schmitz, R. (2025). Copenhagen Is Adapting to a Warmer World with Rain Tunnels and ‘sponge parks’. [online] NPR. Available at: https://www.npr.org/2025/06/13/nx-s1-5340710/copenhagen-climate-changesolutions-flooding [Accessed 25 Oct. 2025].
- OECD (2022). Global plastic waste set to almost triple by 2060, says OECD. [online] OECD. Available at: https://www.oecd.org/en/about/news/press-releases/2022/06/global-plastic-waste-set-to-almost-tripleby-2060.html [Accessed 30 Oct. 2025].