Australia: Adapting to climate change

Media Release

While most climate change adaptation will occur without the need for government intervention, through normal risk management activities, there is a need for policy reforms and initiatives to enhance this process, according to a draft report — Barriers to Effective Climate Change Adaptation — released by the Productivity Commission.

The Commission was asked to identify policy and regulatory barriers to effective climate change adaptation, and identify high priority reform options to address these barriers.

Presiding Commissioner Dr Wendy Craik noted that ‘the reform priority should be to enable better risk management in the current climate. Reforms to barriers to managing risks in an uncertain future climate should be a lower priority because the costs and benefits are also uncertain.’

High priority reforms identified by the Commission include reforms to enhance the flexibility of the economy, such as replacing taxes on insurance and property transfers, removing regulations inhibiting competition such as barriers to water trade, improving information on climate risks by increasing the quality and availability of natural hazard mapping and improving emergency management arrangements. Such measures would help build adaptive capacity for future climate changes as well as responding to current climate variability.

In the case of adaptation to uncertain future climate trends, the Commission found that the case for action is strongest for reforms with relatively low upfront costs and delivering benefits under a range of scenarios.

The effects of climate change will be experienced at the local level, and local governments are likely to play a leading role in relation to key risks, such as longer term sea level rise. State and territory governments will need to support the adaptation efforts of local governments.

The Commission will be holding public hearings in July and is seeking responses to its draft recommendations and a number of information requests contained in the draft report. A final report will be submitted to the Australian Government in September 2012.
Background information

Ben McLean, Assistant Commissioner 03 9653 2187
Requests for comment/other

Clair Angel, Media & Publications 02 6240 3239 / 0417 665 443