MDTA Finance and Administration Committee Meeting Materials

Climate Resilience and Adaptation To ensure the MDTA continues to deliver high quality, safe, and economically sustainable transportation solutions for the State of Maryland,

EMISSIONS (MTCO2E)

CATEGORY

Physical Risks Physical risks associated with climate change may be either event-driven (acute) or result from longer- term shifts in climate patterns (chronic). These risks can have both direct and indirect financial consequences for agencies, including direct damage to assets and indirect effects such as service disruptions to operations. Of key concern for the MDTA is climate-related hazards – such as extreme weather, storm surge, heavy precipitation, and extreme winds as well as long-term sea-level rise and associated flooding. The MDTA is currently undertaking a broad, high- level review of our assets’ exposures to a variety of potential climate-related hazards. In parallel, we are conducting a more in-depth, engineering- level risk assessment of specific assets to identify potential flooding failure points and potential operational impacts. Transition Risks Transitioning to a low-carbon economy involves significant adjustments across policy, legal frameworks, technology, and markets to meet climate change mitigation and adaptation objectives. The financial and reputational risks associated with these changes may vary based on the scope, pace, and emphasis of the transition. For the MDTA, key transition impacts under consideration include technology-related impacts (e.g., increased adoption of electric vehicles and the associated potential impacts on road usage and maintenance), as well as regulatory and legal impacts (e.g., potential future requirements or regulations related to energy efficiency or types of energy used). The MDTA seeks to broadly understand the potential financial implications of both physical and transition climate impacts to its operations and assets. As part of our assessment, the MDTA is using future climate projections to identify potential impacts and then leverage the results to increase operational resilience and enhance long-term financial planning.

Scope 1

11,908

it is of critical importance to understand the full spectrum of potential impacts the MDTA’s operations. Existing and future infrastructure – especially with the long lifespans of public infrastructure – must be built to be resilient in the face of changing climate conditions. As a result, this year the MDTA commissioned a detailed assessment of the potential impacts of climate change to the MDTA’s assets and operations. As a part of this initiative, the MDTA is assessing both potential risks related to the transition to a lower-carbon economy (transition risks) and potential risks related to the physical impacts of climate change (physical risks). This assessment is ongoing and expected to conclude in 2026. The results of the assessment will be leveraged by multiple MDTA departments and teams to prioritize actions and measures that make the agency more resilient to changes in the climate. Future climate resilience actions could affect the MDTA's future capital program.

Biogenic

123

Scope 2

8,847

Total Operational Emissions (Scope 1, Scope 2, and biogenic emissions)

20,878

Through this process, the MDTA was able to identify improvement opportunities in data collection and tracking, as well as key facilities for engagement on emissions reductions and efficiency. Understanding where our emissions impacts are concentrated allows us to focus our efficiency and reduction efforts to make the most impactful changes. Additionally, the most impactful efficiency and emissions reduction actions may also lead to cost savings. During the next year, we will use the results of our inaugural GHG emissions inventory to identify and evaluate potential reduction programs and interventions. In the future, the MDTA plans to mature our GHG inventory through enhanced data tracking and collection, more robust estimations, and the inclusion of more emission sources, such as refrigerants and waste. As we continue to mature our calculation methodology, we will revisit this baseline inventory to ensure accurate year over year comparability.

Maryland House Travel Plaza (I-95)

23

Governance, Risk, and Impact Report

24

Governance, Risk, and Impact Report

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