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| David Pope, The Canberra Times |
The release of the First National Climate Risk Assessment (NCRA) has sparked significant reactions across media and sectors including agriculture, energy, insurance, and finance.
Below are summaries of major perspectives, highlighting risks, responses, and what organisations want to see happen.
The Guardian
The Guardian described the NCRA as delivering a “stark warning about the multifaceted and intensifying risks of climate change across the country” [1].
It emphasised projections such as heat-related deaths increasing up to 444% in Sydney if warming reaches 3 °C, and the economic burden reaching $40 billion annually by 2050 [1].
The Guardian used the phrasing “cascading, compounding, and concurrent” risks, arguing that multiple impacts (on health, infrastructure, emergency services etc.) are likely to overlap and worsen each other [1].
It also warned of threats to biodiversity, observing that at least 17 ecosystems are already showing signs of collapse [1].
Reuters
Reuters reported the NCRA warned that “no community will be immune to the cascading and compounding effects of climate change” [2].
It quoted Climate Minister Chris Bowen saying that while some impacts are unavoidable, moving toward net-zero emissions by 2050 can still reduce future damage [2].
Reuters flagged that northern, remote, and outer urban areas are particularly vulnerable to multiple overlapping climate risks [2].
It noted that the NCRA is paired with a national adaptation plan aimed at improving coordination across levels of government to address these risks [2].
Zurich (Mandala-Zurich Climate Risk Index)
Zurich’s Climate Risk Index found that over a quarter of Australia’s energy generation assets are already in the highest risk categories, and that this proportion is expected to grow significantly by 2050 [3].
The Northern Territory grid is especially exposed, with about 96% of its existing generation capacity in the top three risk tiers under an intermediate warming scenario [3].
Western Australia’s grid was also identified as highly vulnerable to climate extremes [3].
These findings stressed the need for energy sector investment and planning to be risk-aware and responsive to climate hazards [3].
Climate Change in Australia (ESCI Project)
The ESCI (Electricity Sector Climate Information) project came up as a tool to integrate climate risk into electricity planning and modelling [4].
It emphasises that climate modelling should align with decision-making horizons in the energy sector [4].
ESCI identifies pathways for embedding extreme weather and other climate hazards into standards for grid reliability, infrastructure design, and investment strategy [4].
Its work complements the NCRA by providing sector-specific insights that help manage growing hazard exposure [4].
Insurance Council of Australia / APRA
The Insurance Council of Australia (ICA) and APRA are conducting a Climate Vulnerability Assessment involving major general insurers like IAG, Suncorp, QBE, Allianz and Hollard [5].
This initiative aims to understand how affordability and availability of general insurance may evolve under climate scenarios out to 2050 [6].
ICA has warned that many homeowners in high-risk areas are already exposed to growing hazard risk, pushing for a long-term agenda for disaster resilience [7].
There is concern that some properties or regions may become uninsurable unless risk reduction, better planning, resilient building and regulatory standards are improved [8].
Reserve Bank of Australia
The RBA flagged that climate change could amplify financial system stress, especially via insurance, property markets, and non-bank intermediaries [9].
It noted that insufficient insurance coverage for properties can introduce ripple effects through mortgages and lending when disaster hits [9].
APRA emphasised that its insurance Climate Vulnerability Assessment (CVA) will deepen national understanding of how climate risk affects affordability and the protection gap [6].
Analysts warn that rising premiums and underinsurance will disproportionately affect poorer and more vulnerable communities, increasing inequality and economic risk [10].
References
- The Guardian — Key takeaways from Australia’s National Climate Risk Assessment
- Reuters — Australia faces cascading climate risks, government report says
- Zurich — Climate Risk Index finds energy assets highly exposed
- Climate Change in Australia — ESCI Project
- Insurance Business — APRA’s climate risk study to shape future of insurance affordability
- APRA — Details on Insurance Climate Vulnerability Assessment
- Insurance Business — Climate risk hits millions of Australian homes
- EBM Insurance — Climate change vs insurance
- RBA — Resilience of the Australian Financial System
- Reuters — Australian homeowners struggling to afford insurance
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