The report identifies three key areas where the climate crisis is directly driving up costs for Australians: insurance, food, and energy.
These sectors combined have accounted for over a fifth of the consumer price inflation experienced in Australia since 2022.
Key findings:
- Insurance premiums have soared due to an increase in natural disasters, with some households now spending over seven weeks of gross income just to cover home insurance
- Food prices have risen by 20% since 2020, with climate-related disruptions wiping out harvests and making it harder for some regions to grow food
- Energy costs remain high due to a reliance on fossil fuels, underinvestment in renewables, and fossil fuel exports forcing Australians to compete with the global market for Australia’s resources
- The impacts of the climate crisis are disproportionately affecting lower-income and regional households, who are already feeling the financial strain more severely
The report underscores the need for urgent climate action to protect Australian households from these escalating costs. Addressing the root causes of climate change is essential to lowering future risks and alleviating the economic strain that millions of Australians are facing.
“Insurance costs keep on rising and, while competition across big business sectors is needed, the thing that is driving insurance costs is climate change,” said Richard Dennis, Executive Director at The Australia Institute.