The assessment of financial losses caused by the ongoing wildfire crisis in Canada is still underway, and it is anticipated that the impact will be substantial. According to the Insurance Bureau of Canada (IBC), the estimated insured losses could amount to C$1 billion. This would make it the second-largest recorded insured loss resulting from wildfires in Canadian history, trailing behind the 2016 Fort McMurray fire, which incurred C$4.3 billion in insured losses. Furthermore, the IBC predicts that the fires could potentially reduce Canada's real gross domestic product (GDP) for May by 0.1% to 0.3%.

The wildfires that have ravaged parts of Canada in recent weeks have burned an estimated 43,000 square kilometers (10.6 million acres) of land, making them the largest wildfires in Canadian history. About 3.3 million hectares had already burned - about 13 times the 10-year average - and more than 120,000 people had been at least temporarily forced from their homes. "Over the last 20 years, we have never seen such a large area burned so early in the season," said Yan Boulanger, a researcher with Natural Resources Canada. "Partially because of climate change, we're seeing trends toward increasing burned areas throughout Canada." The fires have also disrupted energy production, with natural gas output falling by as much as 20% in some parts of Alberta according to the IBC.

So, what are some of the unseen costs associated with wildfires? Lets take a quick look.

Tourism: The wildfires could have a significant impact on tourism in the affected areas. In British Columbia, tourism revenues are expected to be down by 20% to 30% in the months ahead.

Agriculture: In Alberta, the wildfires have destroyed an estimated 1.2 million acres of cropland. This could lead to higher food prices for consumers and could have a negative impact on the province's agricultural sector.

Forestry: The wildfires could have damaged forests in the affected areas. This could lead to a decrease in timber production and could have a negative impact on the forestry sector. In 2020, Statistics Canada reported that the total value of timber harvested in Canada reached about CAD 22 billion. However, it's worth noting that not all harvested timber originates from wildfire-affected areas. Assuming a considerable portion of the burned land was suitable for timber harvesting, it could be estimated that wildfires caused a loss of approximately CAD 2.2 billion, which accounts for about 10% of the annual timber harvest. A loss such as this could have significant economic implications, impacting not only timber harvesting companies but also downstream industries like pulp and paper manufacturing and wood product industries. It could include indirect effects such as job cuts in the forestry sector, reduced tax revenue for governments, and a decline in economic activity within related industries and local communities.

Infrastructure: The wildfires could have also damaged infrastructure in the affected areas. This includes roads, bridges, and power lines. The cost of repairing this damage could be significant. The government of Canada has announced a C$1 billion disaster relief fund to help those affected by the wildfires. However, this is only a temporary measure and more long-term support will be needed to help communities recover. The fires have also disrupted energy production, with natural gas output falling by as much as 20% in some parts of Alberta according to the IBC.

If a wildfire were to cause a shutdown of oil and gas production in Alberta, it could have a significant impact on Canada's GDP. Historically, the oil and gas sector has contributed around 7 to 9 percent of the country's GDP.

Considering Canada's GDP was approximately CAD 1.9 trillion in 2021, a conservative estimate of the oil and gas sector's contribution at 7 percent would amount to CAD 133 billion. These calculations are approximate and should be interpreted as rough estimates. For precise and up-to-date figures, it is recommended to refer to official reports or economic data.

Here are some common areas of government expenditure related to wildfires: What are these costs and who pays for it?

1. Firefighting Operations

2. Emergency Response

3. Infrastructure Damage and Repair

4. Evacuation and Relief Services

5. Recovery and Rehabilitation

Legal and Administrative Costs

And what about the "Little guy"? In Ottawa, Bogdan Wozniak, a 72-year-old distressed hot-dog stand vendor, expressed his concern over the impact of uncontrollable factors on his business. He acknowledged that his livelihood had always been susceptible to weather conditions, but the challenges posed by smoke or fire were on a whole different level. Reflecting on the situation, he lamented, "When it comes to smoke, there's no way to be fully prepared." Although he wore a mask as a precautionary measure, he acknowledged its limitations, stating, "That's all I have. Today, I'll consider myself fortunate if I manage to break even."

It is important to note that the examples provided  are just one instance of the impacts and costs associated with wildfires. The wildfire crisis is a global issue, and communities worldwide face similar challenges and consequences. The wildfire crisis encompasses various important aspects like public health, biodiversity loss, community displacement, psychological impact, and long-term ecological recovery. It's crucial to note that wildfires are not limited to specific regions like Canada; they occur worldwide in countries such as the United States, Australia, and Europe. While each region may have unique circumstances, the devastating effects and the need for proactive measures remain consistent. While the Canadian examples highlighted the financial impacts and overlooked consequences, it's essential to broaden the discussion and recognize that the wildfire crisis demands global attention, collaboration, and innovative solutions to safeguard communities and preserve the environment.

In closing,RUFF Fire is dedicated to challenging the status quo of the fire service. We recognize that the traditional methods are no longer yielding the desired outcomes, and it is imperative to shift our focus towards science, technology, and tactics to safeguard lives and property. As Albert Einstein famously stated, "The definition of insanity is doing the same thing over and over again and expecting different results." This adage holds true for the fire service, emphasizing the urgent need for change. It is time to revolutionize our mindset and embrace innovative technologies and tactics.

AtRUFF Fire, we firmly believe that by adopting a fresh approach, we can make a significant impact. We are committed to stepping outside the boundaries, actively engaging in experiments, and driving transformative advancements. Through our efforts, we aspire to save lives and protect property in ways previously unexplored.With unwavering determination,RUFF Fire stands ready to pioneer this new era in fire service. Together, we can break the cycle of inefficiency and forge a safer future.

Related articles

https://en.wikipedia.org/wiki/2023_Alberta_wildfires

https://www.aljazeera.com/news/2023/6/7/canadas-record-wildfires-should-be-wake-up-call-experts-warn

https://apnews.com/article/wildfire