Australia’s first national Climate Risk Assessment has warned that the agricultural sector and the regions must be prepared for more extreme events like drought, extreme heat, and flash flooding that will impact yields, damage infrastructure and threaten export markets.
Speaking at Commonwealth Bank’s Momentum conference on Tuesday, Assistant Minister for Climate Change and Energy Senator Jenny McAllister said that after 10 years of inaction on the impact of climate change, the government needed to catch up to global perspectives on risk.
“The UK has already completed their third annual climate risk assessment and have implemented (some of) the findings,” Sen McAllister said.
“2023 was officially the hottest year on record and some impacts of climate change are now unavoidable. So that means asking the question ‘what would it take to be ready for those impacts?’”
The Department of Climate Change, Energy, the Environment and Water (DCEEW) report is a "first pass" assessment that highlights the broader issues, with a further report being developed to quantify the "priority risks". The reports will inform a national adaptation plan.
The key climactic risks identified are;
increased frequency of large-scale heatwaves and record-high temperatures
longer fire seasons with more extreme fire danger days
reduced average rainfall and longer droughts
an increase in heavy rainfall
increased frequency of coastal storm surge inundation and erosion.
The 11 areas of priority risks include;
primary industries and food
regional and remote communities
water security
supply chains, including for global exports
On agriculture the report said; “Changing climatic conditions including extreme events, mean climate and climate variability can influence plant growth patterns, total yield, animal reproduction and foraging and may directly damage plants and animals. Biosecurity pressures from invasive pests, weeds and diseases may also increase.
“This could result in decreased productivity, quality and profitability for primary industries, creating risks to food security and, in turn, risks to human health and nutrition.”
It also found climate change is likely to;
lead to prolonged drought, increases in extreme heat and increased variability in rainfall. These impacts will result in increased variability and possibly reduced quality, quantity, accessibility and availability of water supplies. Water scarcity can also result in greater competition between uses and users, such as agriculture, industry, environment, energy and water supplies for communities.
increase the frequency and severity of hazards such as severe storms and subsequent flooding and can lead to soil degradation, erosion and damage or destruction to marine and estuarine habitats. Drought conditions and increased temperatures can impact soil health and reduce streamflow into rivers, lakes and dams.
The report found that regional and remote communities would be disproportionately more than larger urban areas due to their proximity to rural activities.
“The report released today makes it clear that the physical risks of climate change are spread right across the economy,” Sen McAllister said, highlighting the importance of an adaptation strategy.
“Australian farmers were among the very first to experience the impact of climate change and they’re amongst the first to begin adapting. Agribusiness has worked very hard to use water more efficiently (and) switch to drought resistant crop varieties.”
Commbank Chief Executive Officer Matt Comyn speaking at the bank's Momentum conference.
Addressing the potential impact on the company both from a regulatory and business risk, Commonwealth Bank Chief Executive Officer Matt Comyn said that the bank now spends “almost as much time on our climate report as our full-year financial statements” and was working with all clients to help them make a transition toward reducing their emissions. Agriculture was a key sector, he said.
“Agriculture will be a huge focus for us over the next year or so, working very closely with our customers. It has been really interesting how much the conversation from a client side has shifted over the last few years.”
