Economy, trade and finance at significant climate risk, says new report

The first National Climate Risk Assessment has identified 56 nationally significant climate risks impacting key areas that shape Australia’s future.


Australia has released its first ever National Climate Risk Assessment, identifying major climate risks that are impacting key levers that help drive Australia forward.

The report has noted 56 nationally significant climate risks that are currently facing Australia. Out of these, 11 risks have been deemed as priority risks that demand more immediate attention.

These 11 priority risks cover significant areas such as the environment, the economy, trade, finance, water security, supply chains, settlement, and regional communities among others.

The Federal Government has released the National Climate Risk Assessment along with an accompanying consultation paper to seek further input regarding how the country can better prepare itself for the ongoing impact of climate change.

“Australians know that the climate has changed,” said the Assistant Minister for Climate Change and Energy Jenny McAllister in a media release.

“They feel it on hotter days and experience it in extreme weather events which occur more frequently. This work will help us better prepare for the small and big challenges that climate change brings.”

“Adapting to risk is a task for all of us. We’re laying the foundation for all levels of government, businesses, communities and First Nations to better understand these risks and take action to build their resilience.”

Of particular importance to brokers and insurers, the report includes key insights around the social and economic impacts of bushfires and floods and the risks they pose for regional and remote communities.

The consultation paper released alongside the report will lay the groundwork to establish the National Adaptation Plan – a comprehensive framework for adapting to the nationally significant, physical climate risks identified in the National Climate Risk Assessment.

You can read the full National Climate Risk Assessment on the Department of Climate Change, Energy, the Environment and Water here.