Industry News
The Colorado Fiscal Institute predicts climate change could cost Colorado $37 billion by 2050. This winter has sparked serious conversation surrounding the current impacts of climate change; a season that was one of the worst in Colorado’s recent history has left its mark on the state. Aside from frustrated skiers and riders, mountain towns are feeling the economic impact of the drought. Looking ahead, the state is bracing for a dry summer.
The Colorado Fiscal Institute released a report that addresses the highest-cost priorities facing the Centennial State. Issues like wildfire, water restrictions, and the economic security of ski towns have proven costly in the past. The report uses global emissions pathway models to forecast greenhouse gas levels over the next 25 years, outlining two scenarios: a “medium-high” pathway assumes limited emissions cuts that slow warming, while the “high-end” worst-case scenario predicts a rapid rise in total emissions.
Pegah Jalali, an analyst at Colorado Fiscal Institute (CFI), says in the report that, “Between 2025 and 2050, climate change could impose roughly $33-$37 billion in additional costs and resilience needs across Colorado’s health, infrastructure, wildfire, flooding, and winter recreation impacts.” To put it in perspective, the state’s ski industry pulls in around $4.8 billion a year. The projected climate bill is nearly eight times larger.
Jalali says the biggest threat is extreme heat. The Colorado Climate Center reports that statewide annual temperatures rose by 2.3 degrees from 1980 to 2022. This has had an immediate impact on ski season length. Extending the timeline, Colorado statewide annual temperatures are projected to warm by 2.5°F to 5.5°F by 2050.
These warming events are being felt by those within the Colorado ski community.
In an interview with The Colorado Sun, Chris Miller, the senior vice president for sustainability at Aspen, said the resort has lost over 30 days of winter since 1980. With springtime temperatures on the rise, resorts are struggling to maintain the season lengths they once could.
The town of Aspen is feeling the lack of snowfall as well. While speaking with The Aspen Times, Eliza Voss, senior vice president, destination marketing at ACRA, took note that, “It is clear that snow is an important factor for those considering Aspen for a ski vacation, which in turn has an impact on our local businesses.”
The shorter season means maximizing revenue during peak windows has never mattered more. This year, Vail Resorts reported a net loss of $172.8 million in its first fiscal quarter of 2025, with many attributing the loss to low snowpack and limited terrain openings resulting in trip cancellations.
The uncertainty around season reliability will lead to fewer pass sales and planned visits. Even with heavy reinvestment in snowmaking across the state’s resorts, keeping pace with rising temperatures is an uphill battle.
More importantly, CFI’s study took a look at how climate change will affect humans. Its findings are staggering. Extreme heat is likely to result in up to 1,900 heat-related deaths, contributing billions of dollars to the estimated total. Pegah Jalali said the estimation is based on a widely accepted climate impact tool that combines “daily temperatures, baseline mortality, and an epidemiological risk-with-heat relationship.”
Not all climate effects are felt in the data; they are felt in the mountains, streams, and lakes that surround them. With record-low snowpack totals, these rivers and lakes are feeling the pain. Early indications point towards a super El Niño for the summer months, which could bring relief in the form of rain. For those in the Centennial State, this would be a welcome sight.
