Deloitte Access Economics has crunched the numbers, finding the Australian economy has potentially the most to lose and could shrink by 6 per cent by 2070 if climate change occurs.
Deloitte’s chief economist, Chris Richardson, used the example of the current COVID-19 crisis, noting Australia is facing an even bigger threat.
“If you think COVID is awful, then you should be prepared to fight against an even bigger threat. COVID shows the cost of overlooking catastrophic risks. So, it’s an urgent wake-up call for us to get ahead of that other big risk – climate change.”
For people in their 20s, 30s and 40s today, those losses are experienced in their lifetime, according to Mr Richardson.
“For a generation of Australians, their economic futures, and that of their families and friends will be profoundly disrupted by the consequences of unchecked climate change,” the report found.
The report’s principal author, Pradeep Philip, said the cost of delay or mis-action makes it harder and more expensive to get back on track.
The report notes the high cost of transforming the economy, but points to current government spending.
“A $67 billion cost to transform the economy by 2050 is a small price to pay, relative to the size of our economy. In dollar terms, for comparison, the current JobKeeper program is costing the federal budget just over $65 billion this year alone – and this is the necessary price Australia is paying to minimise the worst economic consequences of COVID,” the report found.
However, while facing a big challenge, Australia could also be the country that benefits the most from action on climate change.
“Australia can create a new climate for growth. And the payoff? A bigger economy – $680 billion bigger – with 250,000 more jobs in just 50 years,” the report concluded.
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