Experts fear Australia’s Intergenerational Report doesn’t admit that climate change will impact the future economy.

Australia’s Treasurer Josh Frydenberg has revealed the Intergenerational report for 2021. The report is released every five years and aims to outline how demographic, technological and other structural trends will affect the economy over the next 40 years.

However, experts fear there is a lack of acknowledgment when it comes to climate change and its impact on the future economy.

Climate change acknowledgment in the report

Climate change only became central throughout the report’s agenda in 2010. Climate change action is such an important part of our economic future, especially at a 40-year glance.

Those 40 years will be the make-or-break period for climate mitigation globally and will demand unprecedented and highly disruptive economic transformation.

As the world seeks to phase out fossil fuels, Australia is yet to make any ambitious targets of net-zero emissions by 2050. Frydenberg has claimed gas exports will be a central pillar of Australia’s contribution to international climate action.

He also spoke about carbon capture and clean hydrogen as promising future industries. However, he made no urgent attempt to model any of the physical or transitional effects of climate change and decarbonisation in depth.

Economist and climate councillor Nicki Hutley wants to see accurate modeling of climate change and the impact it has on the economic future. Hutley says the report lacked details.

“There was really no discussion at all. It was almost like well, we had climate change, nothing much to see here. We’re doing stuff on hydrogen and carbon capture and storage. So nobody needs to worry… which of course is very far from the truth.”

Climate change action and a thriving economy

Climate inaction is costly. For example, the insurance sector is already being impacted by current climate change policies. People who’re deemed a high flood risk area or fire danger area are having difficulty with their eligibility for insurance.

Hutley says the economic impacts will be devastating.

“Melbourne Uni released a report and the potential impact was around $100 million a year. That’s like having a COVID sized shock to the economy, every single year, within the next few decades.”

“It’s not just the extreme events, but rising average temperatures, the impact on tourism on agricultural productivity, on people’s ability to work because of those higher temperatures, it really flows right across the economy. It’s very drastic.”

Nicky Hutley

Climate change action and a thriving economy can work hand in hand. Countries around the world are using climate action to stimulate their economies. Climate change action can create jobs opportunities.

The next Intergenerational Report will be in 2026. Climate change isn’t waiting and neither should we.