An unreleased Australian government report on the economic and environmental risks of the climate crisis has been described as 'intense and scary' by sources familiar with its contents. The national climate risk assessment, developed by the Australian Climate Service and the climate change department, includes modelling of future climate damage, estimates of heatwave-related deaths, and a mapping tool for suburban flooding risks.
The report was delayed until after the May election, alongside other Labor climate documents such as a 2035 emissions reduction target and a climate adaptation plan. The government is expected to release them within weeks, though dates remain unconfirmed. Sources who have seen drafts say the assessment shows the climate crisis will affect all Australians in ways that have been little discussed in political debate.
The analysis examines impacts on eight systems: defence and national security; the economy, trade and finance; First Nations values and knowledge; health and social support; infrastructure and built environments; the natural environment; primary industries and food; and regional and remote communities. Under some scenarios, major systems like electricity networks, transport routes, food production, and the financial sector could struggle to cope with rising temperatures and extreme events.
One source said: 'Even for someone who has been focused on this and thinking long and hard about IPCC reports, it's confronting to read about the details and the severity of the impacts.' Another added: 'There is not one system that is not hard hit by climate change in the future.' The report is expected to prompt debate about the cost to the federal budget and the need for government investment in preparation and recovery.
Extreme weather slowed economic growth early in 2025, costing the Australian economy $2.2bn in the first half of the year, according to the federal Treasury. The Investor Group on Climate Change's Francesca Muskovic noted that the commonwealth already spends $1.6bn a year on disaster recovery but budgets only $215m, calling for more investment in preventive measures. Greens leader Larissa Waters urged the government to release the report, calling it 'an explosive document that they've been burying for over a year'.
