The Productivity Commission has released a 1000-page report calling for Australians purchasing property to be given information about the potential climate risks associated with their property. The report notes that despite the speed of global emissions abatement, Australia must prepared for further global warming, which will increase the severity and frequency of bushfires and flooding in certain regions. The commission suggests the mandatory disclosure of climate-related risks may be necessary to inform potential buyers of a property’s potential risks. However, some property owners may be unwilling to disclose this information due to the risk of reducing property value. The report highlights that detailed climate risk projections can assist insurers in pricing climate risks, thus allowing the government to scrap subsidised insurance schemes that could potentially increase overall adaptation costs. The Australian government will consider the report’s 71 recommendations, including proposals on workforce change, digital technology, and transport. Treasurer Jim Chalmers will discuss the report with state and territory treasurers in June 2023.
Report advises Australian property buyers of climatic risks.
