Under what condition could coastal flooding become an investment opportunity?

Coastal flooding can potentially become an investment opportunity under the condition that carbon emissions remain high in major countries. This scenario is indicative of ongoing climate change, which is expected to lead to more frequent and severe weather events, including flooding. As a result, areas at risk for flooding may see a shift in property values and investment trends.

Investors may look at lower property prices in flood-prone areas as opportunities to acquire assets at a discount. Furthermore, the demand for resilient infrastructure and innovative solutions to manage flooding may rise, encouraging the development of new technologies, construction projects, or retrofit initiatives aimed at mitigating the impacts of flooding.

This condition suggests a market adjustment where, despite the risks, savvy investors capitalize on the need for adaptation and mitigation strategies related to coastal flooding. As communities adapt to these challenges, investing in real estate in these areas can be seen as a strategic move to bet on future growth driven by innovative solutions to climate change.

In contrast, the other options may lead to stabilizing or reducing risks associated with coastal flooding. For instance, decreased global temperatures or reduced carbon footprints would likely result in fewer extreme weather events and potentially decrease flooding risks, making these regions less attractive as investment opportunities in the context of flooding. Additionally, while an increase in