The Federal Government has released Australia’s first comprehensive assessment of the risks posed by climate change across the country – along with a plan for cutting emissions while creating jobs and economic growth.
The National Climate Risk Assessment (NCRA) finds that no Australian community will be immune from climate risks that will be cascading, compounding and concurrent.
Since 2022 Australia has made important progress when it comes to cutting emissions and acting on climate change, and today the Federal Government said the NCRA is clear: while we can no longer avoid climate impacts, every action we take today towards our goal of net zero by 2050 will help avoid the worst impacts on Australian communities and businesses.
Australia’s first independent NCRA was created by the Australian Climate Service and it compiles data and analysis from world-leading experts and scientists from the Bureau of Meteorology, CSIRO, the Australian Bureau of Statistics and Geoscience Australia.
The assessment confirms Australians will continue to experience climate hazards – like floods, cyclones, heatwaves, droughts and bushfires – more frequently, more severely, and often at the same time. It shows northern Australia, remote communities and outer suburbs are particularly susceptible, which will place a strain on health and wellbeing, emergency services, critical infrastructure and primary industries. Australia’s underlying natural ecosystems and biodiversity will also come under significant challenges.
To guide Australia in response to the risk assessment’s findings, the Federal Government has also released Australia’s first National Adaptation Plan. This framework outlines the extensive adaptation action already underway, including Australia’s first National Health and Climate Strategy, the National Disaster Risk Reduction Framework and hundreds of infrastructure, emergency management and disaster resilience projects already funded through the Federal Government’s $1 billion Disaster Ready Fund.
Since being elected the Federal Government said it has directed $3.6 billion into climate adaptation and resilience programs, but more broadly it said it’s increasingly seeing climate change responses factor across a range of government spending decisions, with roughly about $9 billion in funded programs indirectly touching on climate change resilience and adaptation efforts with the dual aim of creating jobs and economic growth.
According to the Federal Government, research tells us that every $1 invested in climate adaptation today can create a return of $10 on investment in the future – and the National Adaptation Plan sets out a framework for governments, communities and industry to better coordinate action and deliver more resilient communities.
The Federal Government said will work with states, territories and local government towards implementing an adaptation action agenda – to give effect to the task set out in the National Adaptation Plan.
Developed in consultation with ministers with responsibility for climate and emergency management at Commonwealth and state and territory level, the Federal Government said the NCRA will build on existing work of governments, so we can all collectively and collaboratively respond to the unavoidable impacts of climate change in our respective jurisdictions, in the interest of all Australians.
The Federal Government said it is listening to the scientific evidence and working with communities already living with the impacts of climate change, and will soon announce the next step in its plan to bring down emissions and seize the global jobs and economic opportunity before us. It also said it will set an ambitious and achievable 2035 target, informed by advice from the independent Climate Change Authority.
The National Climate Risk Assessment and the National Adaptation Plan are now available online.
Federal Minister for Climate Change and Energy, Chris Bowen, said that Australians are already living with the consequences of climate change today but it’s clear every degree of warming we prevent now will help future generations avoid the worst impacts in years to come.
“After a decade of denial and delay, we are acting on climate change – and it’s working. Emissions are coming down, there is record investment in clean energy and we’re working alongside communities to respond and adapt to the impacts,” Mr Bowen said.
“Australia’s first National Climate Risk Assessment and our National Adaptation Plan are a roadmap to address the unavoidable impacts of climate change, to build a more resilient country for all communities, regions and industries.”
Federal Assistant Minister for Climate Change and Energy, Josh Wilson, said that when equipped with the most comprehensive and detailed understanding of the climate risks we face, Australia will be in a stronger position than ever before to plan and deliver appropriate responses.
“Acting now will minimise the cost of responding that will fall on individuals, households, businesses, industry, community groups, and governments alike,” Mr Wilson said.
“The Federal Government is already undertaking considerable adaptation work, but we know there is more to be done to respond and adapt to climate change impacts, and to ensure a sustainable future for generations to come.”
Federal Government Special Envoy for Climate Change Adaptation and Resilience, Kate Thwaites, said that Australians know that the effects of climate change are already impacting their homes, businesses and way of life.
“While we can no longer avoid climate change altogether, every action we take towards our goal of net zero emissions by 2050 will help to protect Australians,” Ms Thwaites said.
“Our Government will keep working to bring emissions down, while helping Australian households, businesses and communities adapt to a changing climate.”
Rewiring Australia said the NCRA contains alarming warnings about the future, but it should serve as a prompt for practical steps households can take to reduce carbon emissions, create more resilient energy systems, and also cut bills.
It said the assessment detailed growing risk profiles for a variety of climate-related challenges, including storms, rising sea levels, extreme heat and energy infrastructure vulnerability – however, households do have some control over a large share of emissions through a few decisions made over time.
Rewiring Australia CEO, Francis Vierboom, said that decisions we make at home about heating, hot water, cooking, vehicles and electricity supply account for around 20 per cent of Australia’s emissions.
“Usually we think of climate change as a big problem that’s happening somewhere else far away,” Mr Vierboom said.
“Unfortunately, this report reminds us impacts are already happening in our communities – but the action to fix it is also happening in our communities.
“Most Australian households still own at least one machine that burns fossil fuels – a car, a gas cooktop, a hot water system, a lawn mower. Every one of these has an electric version that’s cleaner, healthier, cheaper to run and future-proof.
“When you combine these electric machines with cheap rooftop solar, and the thousands of batteries that are getting installed in our homes, the news gets better – this upgrade slashes bills and puts the power back in people’s hands instead of the big energy companies.
“Nobody in the world is going to have a clearer economic case than Australian households. Electrifying our homes is a practical way to protect families and our grid as our climate gets warmer. Each time someone upgrades, they cut emissions and their bills. It doesn’t sound like much when it’s one house or a few hundred, but we are primed for large scale uptake with the most rooftop solar panels per capita in the world.
Mr Vierboom said that this report should also make it clear that governments across Australia should pull out all the stops to do the emissions reductions we can now, and back households to go for lower emissions and lower bills as fast as we can.
“That means removing upfront costs with innovative finance models, such as low or no interest and flexible loans; strengthening the incentives to choose an electric vehicle (EV) at the car yard instead of locking in decades more emissions with petrol vehicles; ending gas connections into new homes and phasing out the sale of new gas appliances; and investing in training the electrical workforce to encourage more electrification,” he said.
“If we make the electric choice clear and easy for every household, we can materially lower pollution and help put more money back in families’ pockets.”
Rewiring Australia said its research has found electrifying a home is a win-win for lowering emissions, and slashing bills.
The Electrification Tipping Point report released earlier in 2025 showed electrifying the average fossil fuel-powered home with solar and a battery saves about $4100 per year over a 15-year period, and driving an EV created savings of about $1500 per year, or $2500 when charged at home using rooftop solar.
