Untitled Climate Change Information Sheet 15 Infrastructure, industry, and human settlements Climate change will have some negative effects on humanity's physical assets. While climate change may have important consequences for infrastructure, they are likely to be smaller than those resulting from demographic, technological, and market changes, in good part because of the many opportunities for adaptation. Industrial, energy, and transport infrastructure may be damaged. Changes in temperature, precipitation, or extreme events can destroy exposed infra-structure or affect productive output.
Some economic activities are particularly vulnerable.
In general, the climate sensitivity of the industry, energy, and transportation sectors is relatively low compared to that of agriculture and natural ecosystems. Rising sea levels could have the most dramatic and direct consequences. Many coastlines are highly developed and contain human settlements, industry, ports, and other infrastructure. Among the most vulnerable are some small island nations, developing countries, and densely populated coasts that currently lack extensive sea and coastal defense systems. The property insurance sector is particularly vulnerable to extreme climate events.