Mayor warns climate inaction could cost West Midlands £600m a year as new Five-Year Plan launched

The Mayor of the West Midlands has warned that failing to act on climate change could cost the region more than £600 million a year within this decade - rising to nearly £3 billion annually by the 2050s - as he unveiled a new five-year plan to protect jobs, infrastructure and economic growth.

Analysis commissioned by the West Midlands Combined Authority (WMCA) shows that climate impacts could reduce regional economic output by over £600m every year by 2030, and up to £2.9bn per year by mid-century if risks are not addressed.

Launching the West Midlands Climate Change Five Year Plan, the Mayor said the choice facing the region is clear: act now to strengthen infrastructure and unlock clean growth or pay a far higher economic price later.

Richard Parker, Mayor of the West Midlands

Richard Parker, Mayor of the West Midlands, said: “Climate change is already costing our economy. Flooded roads, disrupted rail lines, supply chain shocks and rising energy bills all hit businesses and working families.

“Doing nothing is not cheaper. It’s far more expensive.

“This plan is about protecting our economy, backing our manufacturers and making sure the West Midlands stays competitive in a changing world.”

Energy Secretary Ed Miliband, added: “This is a hugely important deal for the West Midlands – and like so many local authorities across the country, the region is simply getting on with climate action because it’s the right thing to do for bills, jobs, energy security and future generations.

“This deal will unlock investment in clean homegrown energy, cut grid delays and help us take back control of energy, delivering a more secure and brighter future for local communities across the region.”

Recent extreme weather events have already exposed economic vulnerabilities across the region. Storm damage has disrupted transport and power supplies; while flooding and overheating have created risks for businesses and households.

The plan focuses on removing barriers to investment and growth, including:

·       Tackling grid capacity constraints that delay renewable energy and industrial electrification

·       Accelerating Local Area Energy Planning to futureproof housing and major developments

·       Establishing a Regional Heat Decarbonisation Unit to unlock shared heat infrastructure

·       Developing a stronger pipeline of investment-ready projects

·       Creating a blended regional investment facility to attract long-term private capital

The Mayor said infrastructure bottlenecks - particularly around electricity grid capacity - are already slowing business investment in new facilities and clean manufacturing processes.

“We have manufacturers ready to invest. We have developers ready to build. But grid constraints and outdated infrastructure are holding projects back.

“We are getting ahead of that. We will plan early, unlock capacity and remove barriers before they become growth blockers.”

The plan also sets out proposals to work with government and national agencies to secure devolved funding and clearer regional carbon accounting frameworks, giving the West Midlands greater control over delivery as well as further resources and powers for the deployment of adaption measures to help address climate change.

With 75,000 people already employed in the region’s green economy and the potential for over 200,000 jobs by 2050, the Mayor said climate resilience and clean energy are central to long-term prosperity.

“The global economy is shifting. Clean energy, smart systems and low carbon manufacturing are where the jobs and investment are going.

“The West Midlands built the industrial revolution. We can lead the next one too. But leadership means planning ahead, investing early and protecting our economy from avoidable damage.”

The Five Year Plan runs from 2026 to 2031 and forms part of the Mayor’s wider Growth Plan for the region.

Since records began in 1884, the five hottest years in the West Midlands have all been recent. Last year, 2025, was the hottest on record followed by 2022, 2023, 2014 and 2024.

The frequency of storm events in the West Midlands has also increased recently, with the region experiencing roughly half a dozen or more named storms annually since 2015.

The 2023-24 season was exceptionally active, bringing significant flooding to the Midlands from storms such as Babet, Ciarán, and Henk.