Mobilising Investment For Climate Adaptation
"This increasing climate-driven cost and disruption is already a drag on economic activity and pushing up insurance costs. But we aren’t investing anywhere near what’s needed to match the scale of the climate risks facing Australia."
— Ramona Meyricke, lead author of the Report.
Australia is significantly underinvesting in climate adaptation and needs a coordinated national strategy to help mobilise tens of billions of dollars into measures that will protect communities and businesses, a new report published by the Actuaries Institute warns.
With natural disasters already costing the economy $38 billion a year and forecast to rise to at least $73 billion by 2060, investing now in adaptation measures – such as more resilient infrastructure – is crucial given the predicted rise in heatwaves, floods, bushfires and storms.
Mobilising Investment For Climate Adaptation finds that although many adaptation projects are underway, various structural, institutional and financial barriers are preventing investment at the scale required over coming decades.
Lead author Dr Ramona Meyricke, actuary and a principal at Taylor Fry, said the long-term economic and social benefits of adaptation are often undervalued despite the damage and disruption Australia faces from intensifying weather and disaster risks.
Key recommendations include:
- clear and simple changes to enhance investment decision-making so adaptation is fairly valued
- a National Adaptation Investment Framework coordinated by the Australian Government, co-developed with states and territories and other major stakeholders, and linked to the National Adaptation Plan
- growing and diversifying revenue streams to help fund adaptation investment.
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