Australians Face Severe Climate Risks as National Climate Risk Assessment Warns of Adverse Impact

Australia faces escalating climate risks that will intensify as global heating increases, according to the National Climate Risk Assessment (NCRA).

The report warns that unless climate pollution is rapidly cut, Australians will face catastrophic impacts across health, the economy, infrastructure, and ecosystems.

The NCRA assesses risks under three scenarios: 1.5°C, 2°C, and 3°C of global warming above pre-industrial levels. Based on current global policies, the world is tracking towards 2.7°C by 2100, making the 3°C scenario the most likely outcome.

Under 3°C level of heating, the number of severe and extreme heatwave days would quadruple, while heat-related deaths could increase dramatically, including by 440% in Sydney, 420% in Darwin, and 300% in Perth. Worker productivity losses from extreme heat could reach $135–423 billion by 2063, equivalent to 700,000 additional days of lost work every year by 2061.

The report also highlights the threat to Australia’s coasts, leading to 18 times more coastal flooding by 2090. This would expose 3 million Australians to coastal hazards and cause property value losses of up to $770 billion by the end of the century.

Disaster recovery spending is projected to be almost seven times higher by 2090, placing significant strain on government resources.

The assessment identifies Queensland, Tasmania, NSW and the ACT as the regions facing the most significant rise in risks. Remote communities are particularly vulnerable due to limited telecommunications and supply chain resilience, while Aboriginal and Torres Strait Islander peoples face disproportionate health and social impacts, including displacement from Country, reduced air quality, and increased homelessness.

Climate risks pose an urgent challenge for the future of all Australians, including the insurance landscape. The growing impact of extreme weather and heatwaves will be an important topic of discussion at the upcoming NIBA Convention. Led by Zurich, a morning masterclass session will explore how the insurance industry’s role can be strengthened to build resilience and meaningfully address climate change.

There are just 25 sleeps left until the NIBA Convention. Limited spots left. Register today.