In this article, we will look at the 24 US cities most affected by climate change. You can skip our detailed analysis and see 5 US Cities Most Affected by Climate Change.
Current Climate Change Scenario in the United States
According to a report by the Environment Protection Agency (EPA), the US is witnessing substantial impacts of climate change, translating into extreme weather events, economic challenges, and a rise in public health crises. The United States is the second biggest greenhouse gas emitter in the world, significantly contributing to the global climate crisis. In 2023, the US experienced extreme weather patterns including record-breaking heatwaves, storms, and wildfires. For instance, states like California and Mexico have witnessed frequent and extreme wildfires with over 1.5 million acres burned in California in 2023. According to the National Oceanic and Atmospheric Administration, the average temperature in the contiguous U reached 54.3°F, significantly higher than its historical average of 52.7°F. Other extreme weather events like hurricanes and storms have also intensified. According to the National Hurricane Center, climate change will further exacerbate the intensity of storms. The 2022 Atlantic hurricane season had 14 storms, 8 hurricanes, and 2 major hurricanes, leading to over $50 billion in damages. The Environment Protection Agency cited a study in their report stating that average incomes in the US can fall by approximately 20% due to climate-related damages by 2050, causing an annual economic loss of $38 trillion.
READ ALSO: 20 Most Sustainable Cities in the World and 15 Countries with the Most Climate Refugees in the World
Economic Ramifications of Climate Change
Climate change is not only an environmental issue but is also an economic and social concern. According to the World Economic Forum, climate change can cause 14.5 million deaths and $12.5 trillion in economic losses worldwide by 2050 with the US bearing a considerable portion. Public health is at risk with projections indicating that 177 to 246 million older adults will be exposed to dangerous heat conditions by 2050. This is a major issue for vulnerable communities with high hospitalization and mortality rates associated with extreme heat. A study by the CDC discovered that heat-related deaths have increased by 56% over the past 30 years in the United States.
The projections for climate change in the country remain an alarming concern, with the likelihood of global temperatures surpassing the 1.5°C threshold rising nearly 59% from 2022 to 2026. This could lead to catastrophic effects on the societies and the whole ecosystem. If the current heat trend continues, the United States can witness an increase in extreme heat days from an average of 20 days per year to more than 60 days per year by 2050.
Is the US Producing Enough Renewable Energy?
Multiple efforts are being made globally to rectify the impacts of climate change. One of the key developments toward ecological preservation and emission control is the rising trend of renewable energy production. Over the past few years, the industry has witnessed tremendous growth driven by climate change and the net zero carbon commitments of countries worldwide. The US Energy Information Administration projects renewable installation to increase by 17% to 42 GW in 2024, accounting for nearly 25% of electricity generation. In 2023, the US installed a record 31 gigawatts capacity of solar energy, a 55% surge from 2022. Despite the surge in growth, it needs to double the installation rate in the coming years to reach carbon-free electricity by 2035.
NextEra Energy, Inc. (NYSE:NEE) is a leading force in the clean energy landscape of the US providing clean and affordable energy. It generates, transmits, distributes, and sells electric power to retail and wholesale customers. It owns one of the largest electric utility companies in America, Florida Power & Light Company which provides electricity to over 12 million people across Florida. The clean power provider boasts a competitive clean energy business and an impressive generation capacity of 37,000 megawatts, with solar and wind representing 33,000 megawatts. It also has seven commercial nuclear power units in Florida, New Hampshire, and Wisconsin.
The company boasts a strong market in Florida through its utility segment, Florida Power & Light providing a sustained revenue stream and consistent growth. Moreover, its renewable energy business is rapidly expanding with an aim to reach 41.8 gigawatts by 2026. One of the biggest growth areas for the company is data center power provision. NextEra Energy, Inc. (NYSE:NEE) is well-positioned to capitalize on the growing AI market. The company has signed multiple power purchasing agreements with the biggest tech companies including Meta and Google. In 2022, it entered into a purchase power parity agreement with a data center in Texas. In the second quarter of 2024, the company signed over 3 gigawatts of deals, including an 850-megawatt deal with Google. Datacenters have been a major growth driver for the company in 2024 so far, especially in the 2nd quarter.
Clearbridge Investments mentioned NextEra Energy, Inc. (NYSE:NEE) in its Q2 2024 investor letter, saying the following:
“AI-related momentum was a key driver of performance in the second quarter, lifting the enablers in technology as well as holdings like renewable power producer NextEra Energy, Inc. (NYSE:NEE) that supply the increasing energy needs of data centers. Parts of the market lacking an AI connection, like our medical device holdings, underperformed despite no change to fundamentals. We have managed through several similar momentum periods over our tenure and have delivered long-term results for shareholders by staying true to an approach that emphasizes diversification across three buckets of growth companies (select, stable and cyclical) and seeks to take advantage of attractive entry points into quality growth businesses.”
While we acknowledge the potential of NEE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Now, let’s look at the 24 US cities most affected by climate change.
Methodology
To compile our list of the 24 US cities most affected by climate change, we utilized Urban Heat Island (UHI), which is measured by comparing air or surface temperature in urban areas to nearby rural areas. It is a crucial metric for ranking cities most affected by climate change as it has a direct correlation with rising temperatures and its impacts on marginalized communities. We have used Climate Central as our source, which calculated the UHI in 37,094 census block groups, across 65 US cities with a total population of over 50 million. We have listed the US cities most affected by climate change in ascending order of their UHI.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here)
24 US Cities Most Affected by Climate Change
24. San Diego, California
Average Urban Heat Island Index (UHI): 8.08°F
San Diego is ranked 24th among the US cities most affected by climate change. One of the core strategies of the city to deal with the consequences of climate change is to ensure the provision of 100% renewable energy.
23. Cincinnati, Ohio
Average Urban Heat Island Index (UHI): 8.08°F
Some of the major climate change impacts in Cincinnati include rising temperatures, severe storms, and a surge in heat waves. Its average UHI is 8.08°F, as of 2024.
22. Detroit, Michigan
Average Urban Heat Island Index (UHI): 8.10°F
The potential effects of climate change on the green spaces in Detroit is a major issue. The city is projected to experience intense heat and precipitation in the upcoming years. It is ranked 22nd on our list of the US cities most affected by climate change.
21. Minneapolis, Minnesota
Average Urban Heat Island Index (UHI): 8.12°F
Minneapolis is one of the cities affected by climate change in the United States. It has an average urban heat island of 8.12°F.
20. Portland, Oregon
Average Urban Heat Island Index (UHI): 8.12°F
Portland aims to achieve a 40% reduction in carbon emissions by 2040. It is ranked 20th on our list.
19. Orlando, Florida
Average Urban Heat Island Index (UHI): 8.13°F
Orlando faces extreme heat events due to climate change. It is one of the most affected cities by climate change in the US.
18. Cleveland, Ohio
Average Urban Heat Island Index (UHI): 8.14°F
Temperatures in Cleveland are rising thrice than elsewhere in the US, according to the Great Lakes Integrated Sciences and Assessments Program. It is ranked 18th on our list.
17. Tampa, Florida
Average Urban Heat Island Index (UHI): 8.14°F
Tampa is prone to rising temperatures, sea level rise, and flooding. Tampa Bay area is one of the most vulnerable regions to climate change in North America. It is ranked 17th on our list.
16. New Orleans, Louisiana
Average Urban Heat Island Index (UHI): 8.18°F
New Orleans is one of the most affected cities in the United States by climate change. According to Climate Central, its average urban heat island index is 8.18 °F.
15. Houston, Texas
Average Urban Heat Island Index (UHI): 8.19°F
The average temperature in Houston is rising rapidly. It is one of the most climate-vulnerable cities in the US.
14. St Louis, Missouri
Average Urban Heat Island Index (UHI): 8.21°F
St Louis is one of the most vulnerable cities in the US to climate change. It is ranked 14th on our list with a UHI of 8.21 degrees Fahrenheit.
13. Ft. Myers, Florida
Average Urban Heat Island Index (UHI): 8.23°F
The heat in Ft. Myers is on the rise affecting the environment as well as public health. It is ranked 13th on our list.
12. Norfolk, Virginia
Average Urban Heat Island Index (UHI): 8.24°F
Sea level rise is the major climate change impact faced by Norfolk. Over the past 80 years, it has risen to 0.37 meters and is projected to increase between 0.39 to 1.6 meters by 2100, as NRDC reported.
11. Seattle, Washington
Average Urban Heat Island Index (UHI): 8.34°F
Seattle plans to reduce GHG emissions by 58% below 2008 levels by 2030 and reach net zero emissions by 2050. It is ranked 11th on our list.
10. Baltimore, Maryland
Average Urban Heat Island Index (UHI): 8.36°F
Baltimore has an ambitious goal of reaching a 60% reduction in carbon emissions by 2030 and achieving carbon neutrality by 2045. It is one of the most affected US cities by climate change.
9. Miami, Florida
Average Urban Heat Island Index (UHI): 8.38°F
Miami has always been prone to hurricanes, storm surges, and flooding. With the changing climate, climate-induced events in the city are on the rise. Miami has an average UHI of 8.38°F.
8. Boston, Massachusetts
Average Urban Heat Island Index (UHI): 8.42°F
Boston is highly prone to climate change and is ranked 8th on our list, with a UHI of 8.42°F.
7. West Palm Beach, Florida
Average Urban Heat Island Index (UHI): 8.47°F
West Palm Beach is ranked 7th on our list of the US cities most affected by climate change with an average UHI of 8.47°F.
6. Washington, DC
Urban Heat Island Index (UHI): 8.49°F
Washington is witnessing warmer winters due to the changing climate. It is ranked 6th on our list.
5. Philadelphia, Pennsylvania
Average Urban Heat Island Index (UHI): 8.49°F
Philadelphia’s potential climate change impacts include increased precipitation, extreme storms, rising sea levels, and extreme heat. It is ranked among the US cities most affected by climate change.
4. Chicago, Illinois
Average Urban Heat Island Index (UHI): 8.71°F
Chicago is ranked 4th on our list with an average UHI of 8.71 degrees Fahrenheit.
3. Newark, New Jersey
Average Urban Heat Island Index (UHI): 9.04°F
Newark is one of the most affected US cities by climate change with an average UHI of 9.04°F.
2. San Francisco, California
Average Urban Heat Island Index (UHI): 9.14°F
San Francisco is ranked 2nd on our list. Climate change has tripled the threat of rising sea levels in cities. It is one of the most climate-vulnerable cities in the country.
1. New York City, New York
Average Urban Heat Island Index (UHI): 9.65°F
New York City is ranked 1st on our list of the US cities most affected by climate change. It has an average UHI of 9.65°F. Major impacts of climate change in the city include increased temperatures and intense heat waves.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. This article was originally published at Insider Monkey.