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New research shows scale of climate risk is growing: The next government must prioritise legislating National Climate Risk and Adaptation Plans

As yet another climate fuelled disaster unfolds, new research from The Australia Institute reveals a devastating truth: Australians are being forced to gamble with their future because escalating climate risk is making insurance unaffordable. Families, businesses and our entire economy are all at risk.

We have a clear choice: act now to build resilience, lower insurance costs and protect lives and livelihoods, or leave Australians and our economy vulnerable to financial ruin.

The Australia Institute’s research shows one in five people (19%) say their house is either underinsured or uninsured. It also highlights the middle 20% of Australian households (about 1.95 million people) would lose three quarters (74%) of their wealth if their home is destroyed in a natural disaster. Meanwhile those doing it toughest, the poorest 20% of Australians, would lose more than half
their wealth if they had no contents insurance.

This is a social and economic disaster in the making. The soaring cost of insurance and rising levels of underinsurance is a direct consequence of worsening climate change. Yet not enough is being done by our governments to address climate risk. Climate resilience is a massive gap in federal policy and must be an urgent national priority.

We must take smart steps to reduce climate risk and improve resilience. This means prioritising smarter planning, creating more resilient homes, and scaling up investment in climate risk reduction measures that protect households, communities, businesses and our economy.

To underpin this work, we must legislate regular, independent National Climate Risk Assessments and Adaptation Plans to lock in long-term resilience planning and preparation, regardless of political changes. Governments have a duty to keep Australians safe.

That’s why I am releasing the exposure draft of my Climate Change (National Framework for Adaptation) Bill and calling on both major parties to commit to legislating National Climate Risk and Adaptation Plans in the 48th Parliament.

My Bill was developed in consultation with a wide range of industry stakeholders, including via a roundtable I hosted in August with local government, insurance, banking sector, civil society and climate groups. It will ensure that National Climate Risk Assessments and Adaptation Plans are developed independently of political party ideology, every five years, at arms-length from the government and with extensive consultation, to ensure our response to climate risk is robust and evidence-based.

The current government has committed to drafting a National Climate Adaptation Plan but where is it? With an election set to be called any day, addressing climate risk, one of the biggest threats to our economy and impacting the safety of our communities, is barely rating a mention by the traditional parties. This is a disgrace.

The next Government must deliver a resilience dividend.

Investing in climate resilience is a smart economic choice. The dividend of resilience action is clear. There is no sensible economic management without investing in resilience. Every dollar spent on resilience saves up to eleven dollars in recovery costs. The next government must put climate resilience at the heart of its economic plans. The lives of Australians, our livelihoods and our economy
depend on it.

As Tropical Cyclone Alfred hits communities across northern NSW and south-east Queensland, my thoughts are with every person facing these terrifying conditions, the families of those impacted and the emergency responders risking their lives.

However, ‘thoughts and prayers’ are not enough, communities need action. Whichever party forms the next government has a clear choice – invest in building climate resilience now, or risk a future where Australian families, businesses and our economy face climate-fuelled devastation.