Not Too Late to Curb Climate Change Cost

The economic toll from climate change is tipped to worsen across Australia’s cities and regions, but experts say there is still time to take stronger action.

Increasingly frequent and severe events will hit crucial supply chains, markets, finance and trade, reducing the availability of goods in Australia and increasing their price, an international report has warned.

Economist Nicki Hutley said on Tuesday the United Nations Intergovernmental Panel on Climate Change report makes it clear that Australia’s economy faces significant and growing economic challenges due to climate change.

“It is also clear that urgent emission reductions through renewable energy and new clean industries could see us avoid the worst financial shocks and bring about incredible economic opportunities, especially for our regions,” she said.

The federal government is backing new technologies to reduce emissions and says it has led the world in carbon accounting standards through the National Greenhouse and Energy Reporting Scheme.

“Australia has more to lose, but even more to gain than any other developed nation in the transition to a net zero economy,” Carbon Market Institute head John Connor said.

“We need stronger policies on industrial decarbonisation and reversing deforestation, including a declining baseline as part of the federal government’s Safeguard Mechanism.”

The mechanism requires Australia’s biggest polluters to keep their net emissions below a baseline, but critics say it should be less lenient and also supported by adequate measurement and compliance.

Links to international carbon markets could also help emissions-intensive industries, such as energy, agriculture, transport, manufacturing and industrial processes for chemicals and steel.

Mr Connor said improvements to the crediting and credibility of land-based and other forms of carbon reduction and removal are also needed.

The latest grim assessment from the IPCC warns high levels of warming could cause a global GDP decline of 10-23 per cent by the end of the century, and an even steeper cost for our largest trading partner China.

If emissions remain high, aggregate losses in the agriculture, manufacturing and service sectors in Australia could be as much as $19 billion by 2030, $211 billion by 2050 and $4 trillion by 2100.

Former fire commissioner Greg Mullins said the report spells out a “frightening fire future” that demands swift emissions cuts.

“It is offensive to me, other firefighters and Australians dealing with climate change that we are not only the worst climate performer out of all developed countries but we have a federal government that is actively making the problem worse by funding new fossil fuel developments.”

A hit to Australia’s health budget from deadly weather, more expensive food, rampant bushfires, damage to critical infrastructure, and heat stress for livestock are among the challenges already faced.

Australian Council of Social Service head Cassandra Goldie is concerned the climate impact will entrench and drive more poverty and inequality.

“People on low incomes are hit first, worst and longest and have the least resources to cope, adapt and recover,” she said.