Why climate adaptation is key to US energy expansion

US power producers face the challenge of meeting growing energy demand while preparing for how climate change will affect their assets. Many companies are engaging in adaptation and resilience efforts to prepare for the physical effects of climate change. In the absence of adaptation, our analysis shows that utilities could incur nearly $68 billion in annual financial impact from climate physical risks by 2040, rising to about $77 billion by 2050.

Despite these projections, some companies have yet to disclose their plans to adapt to physical climate risks. Nearly one-third of planned US power generation capacity is being developed by companies that lack an adaptation plan, making a significant portion of the US’ energy expansion more vulnerable to climate risk.

This report is part of S&P Global’s Look Forward: Energy Futures, a collection of research on a world of rising energy demand, expanding supply and intensifying strategic competition.

Listen: WPC gets underway in a volatile world

S&P Global Energy experts Ian Young, Mark Thomas and Daniela Morales joined host Jameson Croteau on a special episode of the “Chemical Week Podcast” to discuss the key themes and expectations of this year's World Petrochemical Conference (WPC 2026). They explored oversupply in the face of weak demand, opportunities related to AI, turbulent geopolitics, what's next for China's chemicals sector and economic conditions.

The war in the Middle East, supply chain and tariff issues, the evolution of the industry in Asia-Pacific and the changing nature of the energy transition take center stage as industry leaders prepare to gather March 23–27 in Houston to discuss the key issues facing the global petrochemical industry at WPC 2026.