By Carlos Curbelo, former U.S. representative
More than 60 years ago, my parents fled Cuba for the United States, seeking freedom from an oppressive regime that dictated what businesses produced and how products were priced. They knew that a country without free markets could not offer the economic prospects and individual liberties they wanted for their family.
In America, they found a land of opportunity, where hard work and entrepreneurial spirit were rewarded. Because of their brave decision, they were able to buy a home and provide a better life for our family in Miami-Dade.
Our country has long been a beacon of freedom for people like my parents — people who believe in free-market principles, where business owners and their shareholders, not the government, make business decisions.
That’s why it is deeply troubling to see champions of free enterprise now working to undermine the very market principles they once defended — by opposing responsible, risk-based business decisions, including those that factor in the clear and growing economic impacts of climate change.
As a long-time South Floridian, I know firsthand that the impact of extreme weather events on our state cannot be ignored.
In the past five years alone, Florida has faced 34 weather-related disasters, each causing losses exceeding $1 billion. The total economic cost of these disasters is estimated at $200 billion. And the trend is intensifying — in 2024 alone, there were 11 weather events with total economic losses approaching $100 billion.
These events are wreaking havoc on Florida homeowners. In 2023, 53,648 Florida households lost their insurance coverage — the same year eight billion-dollar disasters struck the state. That means 3% of all property insurance policyholders lost their coverage in a single year — triple the national average non-renewal rate.
For those who have maintained coverage, the costs are staggering. According to NerdWallet, homeowners insurance in Florida now averages $2,625 per year for $300,000 in dwelling coverage — far higher than the national average of $1,915.
The unique challenges of climate risk underscore why investors and companies must be able to consider these risks in decision-making.
By 2050 — just 25 years away — the global economy could lose about 10% (or $23 trillion annually) of its total economic value due to the warming climate. These risks could increase the federal debt, cause sudden and chaotic changes in asset prices, or destabilize the financial system if markets fail to adapt to changes in policy, technology and consumer behavior.
Despite these growing concerns, recent legislative efforts seek to limit the consideration of climate risk in financial decision-making. Some congressional Republicans have introduced restrictive policies that would prevent investors and companies from accounting for these very real economic threats.
If enacted, such legislation would undermine two core American strengths — free markets and individual liberty.
Since July 2023, more than 10 bills have been introduced in Congress, along with a dozen committee hearings targeting investor freedom, proxy voting rights, and the ability of banks and credit unions to consider climate risks in lending.
Similar legislation passed in state legislatures has already cost taxpayers hundreds of millions of dollars through higher interest rates on municipal bonds and imposed unreasonable burdens on financial institutions. Ironically, these Republican-led efforts mirror longstanding efforts from the far left to dictate how individuals and companies should invest, operate and spend.
If we want America to continue leading the world in innovation and economic growth, our companies must have the freedom to invest responsibly and account for climate risk.
I don’t want my daughters to live in a country or a state where businesses’ inability to adapt to climate change has undermined their safety, limited their opportunities or damaged their quality of life. We have a responsibility to encourage — rather than stifle — the innovation needed to mitigate these risks and create a sustainable future for the next generation.
Our strength as a nation lies in our free and thriving capital markets. If we want to secure our future and the future of our children, we must continue to uphold the free-market system that makes our country home to one of the strongest economies on Earth.
Carlos Curbelo, a Republican, represented Florida’s 26th Congressional District in the U.S. House of Representatives from 2015-2019. This opinion piece was originally published by the Miami Herald, which is a media partner of The Invading Sea. Banner photo: Damage in Cedar Key from Hurricane Helene (Florida Fish and Wildlife Conservation Commission, CC BY-NC-ND 2.0, via flickr).
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