Australia needs to develop a co-ordinated national plan and to invest tens of billions of dollars on climate adaptation and resilience in the coming decades to match the scale of climate risks facing the country, according to the Actuaries Institute.
In its report, Mobilising Investment for Climate Adaptation, the group urges for more investment in adaptation measures such as more resilient infrastructure to protect communities and businesses from climate risks.
“We aren’t investing anywhere near what’s needed to match the scale of the climate risks facing Australia,” according to Ramona Meyricke, lead author and principal at Taylor Fry.
Natural disasters are already costing the economy AU$38 billion a year and costs are predicted to rise to at least AU$73 billion by 2060.
“These costs can’t be avoided entirely, but they can – and need – to be reduced through investing more in adaptation actions that protect homes, property, infrastructure and other assets. The recently released National Climate Risk Assessment and the National Adaptation Plan made that clear,” Dr Meyricke said.
The institute calls for a change from short-term and reactive spending on adaptation measures and warns that the country is underinvesting in resilient infrastructure.
Governments should not fund the required investment alone and both public and private sectors need to work together given the scale of the task.
“Australians are not yet aware of the scale of what needs to be funded from protecting homes to upgrading critical infrastructure or the respective roles of households, business and governments.
“A finance strategy would provide that clarity and help unlock investment at scale,” Dr Meyricke said.
The report recommends targeted policy actions in three key areas that would mobilise investment in adaptation and reduce the long-term costs of climate-driven natural hazards.
Governments should overhaul their cost-benefit rules so adaptation and resilience are properly valued for the long-term impact they can have.
The institute also wants a National Adaptation Investment Framework and options for growing and diversifying revenue streams to fund adaptation investment.