A new report, commissioned by the Minderoo Foundation, has found that only 3% of Australia’s funding for natural disasters goes toward preparation and mitigation, with the rest being reserved for recovery. This is despite the research, as performed by Deloitte Access Economics, showing that investments in preparations could results in billions of dollars in gains to Australia’s GDP over the next 30 years.
According to The Sydney Morning Herald, over the last 50 years, the research estimated natural disasters having cost Australia roughly $120 billion, while projecting that total to reach $150 billion by the end of the decade, and reaching a total of $1 trillion by 2050, due to escalating impacts associated with global warming, in the form of increased heat waves, storms, and floods.
Says Andrew Gissing, general manager of Risk Frontiers, “Insurance losses from floods and tropical cyclones present the greatest risk of financial impacts to Australia,” while noting that working to improve building standards for intense winds and fires, or reducing flooding risks should be priorities for resiliency.
Says Dr. Pradeep Philip, Deloitte Access Economics lead partner, “For Australia, mitigation alone will not be enough. Adaptation requires adjusting to actual or expected future climate changes to reduce our vulnerability to asset and customer risks.”
Source:
