News

20 March 2024

ZALI STEGGALL MP LAUNCHES CLIMATE RESILIENCE PLAN TO PROTECT COMMUNITIES AND THE ECONOMY – INCLUDING $10BN FUND TO BUILD LOCAL GOVERNMENT RESILIENCE

Independent Federal MP for Warringah Zali Steggall has today launched her ‘Climate Resilience Plan’, a comprehensive policy package that aims to protect Australian households, communities, businesses and the economy from escalating climate risk.

Zali Steggall’s Climate Resilience Plan also aims to improve insurance affordability by tackling the number one driver of rising insurance premiums – the impacts of extreme weather made worse by climate change.

The Climate Resilience Plan includes:

• $10 billion for a new Climate Resilience Fund to deliver climate resilience infrastructure projects across the country (managed by the Future Fund).
• $40 million to expand the work of the Resilient Building Council in measuring the resilience of homes and buildings and incentivising risk reduction (expanding the Resilience Rating System and developing a Household Climate Resilience Certificate).
• Legislating independent National Climate Risk Assessments and Adaptation Plans every five years, to embed a National Framework for Adaptation that ensures we are assessing, planning for and mitigating the impacts of climate-fuelled extreme weather.
• Updating the National Construction Code to adopt resilience standards and promote low cost, climate-resilient and energy-efficient housing.
• Co-ordinating all levels of government to create stronger land planning controls to ensure new developments are not built in high-risk areas (such as flood zones).

Announcing the Climate Resilience Plan, Zali Steggall MP said: “As the devastation of Cyclone Alfred has sadly highlighted, lives, livelihoods and our economy are at risk from climate change and increasingly frequent and severe extreme weather. With a Federal Budget days away, it’s time for the government to start prioritising long term investments in climate risk.”

“Budgets are about priorities, and with estimates that Cyclone Alfred cost the economy $1 billion a day[1], it’s astonishing neither of the major parties has a credible economic plan or cohesive policy to invest in resilience to protect our communities and our economy from this growing climate risk.”

“While accelerating the transition to net zero should be our number one objective, investments in risk reduction and climate resilience must be a priority for whichever party forms the next government. Ignoring reality by not adequately planning and preparing for growing climate risks is nothing short of negligence from the major parties. Communities need action now.”

As polling suggests the major parties will struggle to win a majority at the election, Ms Steggall MP said support for her Climate Resilience Plan will be a priority if re-elected.

Under the plan, a new $10 billion Climate Resilience Fund will support the implementation of a legislated National Climate Adaptation Plan. Immediate priority will be given to high-risk local government areas[2] to enhance infrastructure and mitigation measures that reduce the economic damage of climate-related disasters. Under the plan, this will be funded by phasing out and redirecting taxpayer subsidies for fossil fuels, such as abolishing the fuel tax credit for all industries except agricultural businesses. This proposal has been independently modelled by the Parliamentary Budget Office (PBO) to see an increase to the underlying cash balance by around $1.5bn over the 2024-25 Budget forward estimates period.[3]

Research shows climate change is major threat to the Australian economy, with extreme weather events already costing more than $38 billion a year, and this is expected to double to $73 billion by 2060.

“Instead of subsidising the prolonged use of the fossil fuels driving the climate crisis, a much smarter use of taxpayer dollars is investing in measures that will protect families, businesses and our economy as the climate crisis intensifies and extreme weather gets worse,” said Ms Steggall MP.

“Investing $10 billion in community resilience could save up to $110 billion in disaster recovery costs[4]. The dividend of investing in climate resilience is crystal clear. It helps protect communities, drives down insurance costs, and strengthens our economy. It isn’t just a smart choice, it’s the only fiscally responsible one.”

The release of Zali Steggall’s Climate Resilience Plan follows new research from The Australia Institute revealing one in five Australian households are either underinsured or uninsured – and the average uninsured household would lose three quarters of their wealth if disaster struck.

Sydney’s Northern Beaches, parts of which form Zali Steggall’s electorate of Warringah, are at significant risk with the NSW State Disaster Mitigation Plan[5] estimating that by 2060 the LGA will be the most impacted in NSW. The Plan estimates damage caused by extreme weather to the built environment in the Northern Beaches could come close to $1 billion dollars a year.

“Tackling climate risk is not only economically sensible in the long term, but it can also help address one of the main drivers of inflation – skyrocketing insurance costs. My plan provides a sensible, fiscally responsible pathway for making households, communities and businesses more resilient while reducing disaster and climate-driven costs. The next government must make climate resilience a core economic priority, anything less is reckless,” said Ms Steggall MP.

To learn more about Zali Steggall’s Climate Resilience Plan head to www.zalisteggall.com.au/climateresilienceplan

[1] Estimate from AMP chief economist Shane Oliver (11/03/25)

[2] High risk LGAs identified in the Australian Government’s National Climate Risk Assessment, which is yet to be released.

[3] The Climate Resilience Fund will be offset by the phasing out of the fuel tax credit, for all industries except agricultural. Meaning, the financial implications of the proposal will see an increase to the underlying cash balance by around $1.5bn over the 2024-25 Budget forward estimates period.

[4] CSIRO research shows every $1 invested in climate resilience saves up to $11 in recovery costs.

[5] https://www.nsw.gov.au/departments-and-agencies/nsw-reconstruction-authority/our-work/disaster-adaptation-planning/state-disaster-mitigation-plan

Supporting quotes:

Mayor Sue Heins, Northern Beaches Council:
“Councils are on the frontline of managing the projected impacts of climate change, and the Northern Beaches is expected to be particularly at risk. This is the kind of initiative that will allow us to better prepare our community and our organisation.”

Mayor Matt Burnett, President of the Australian Local Government Association (ALGA):
“Australia’s 537 councils have been at the forefront of climate adaptation for many years. They build swimming pools to keep us cool, plant trees to provide shade, and build and upgrade stormwater systems to manage heavy rains. However, local governments are significantly underfunded, meaning the burden for the increased services and infrastructure needed to adapt falls to our local communities. The climate of every community is different, and each council knows what their community needs to prepare and adapt. ALGA has advocated for increased support for councils to deliver local, place-based climate solutions, and it’s encouraging to see a national spotlight on the need for ongoing and sustainable funding.”

Kate Cotter, CEO of the Resilient Building Council:
“The Resilient Building Council (RBC) supports increased resilience investment through Zali Steggall’s Climate Resilience Plan.  RBC programs help households reduce risks and insurance premiums. We look forward to expanding this work to benefit all Australians. Helping families and businesses access affordable insurance and finance protects the financial wellbeing of all Australians and reduces risks to the broader economy.”    

Jacqui Scruby, Independent Member for Pittwater:
“My electorate of Pittwater is already feeling the cost of climate change with staggering insurance costs, particularly in flood prone and bushfire prone areas. We're set to be leading the state when it comes to costs associated with extreme weather by 2060. Zali Steggall's 'Climate Resilience Plan' comprehensively deals with the complex factors needed to reduce risk and put downward pressure on insurance.  I strongly support redirecting fossil fuel subsidies to investing in resilient infrastructure and unlocking private investment in resilience. When it comes to climate change, prevention is not only the smartest strategy — it’s the most fiscally responsible. We cannot afford to continue neglecting the climate crisis. We must both mitigate and adapt, or continue to pay the escalating price."