The report finds direct connections between the climate crisis and rising cost-of-living pressures. It posits that failure to lower emissions now will only aggravate the crisis, with each moment of inaction compounding the pressure on households. 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 one fifth of the consumer price inflation experienced in Australia since 2022 and the impact of climate change on the cost-of-living is only likely to grow.

The report underscores the need for urgent climate action to protect Australian households from these escalating costs. Decades of inadequate climate action has left Australia heavily reliant on fossil fuels for electricity, heating and transportation. Addressing the root causes of climate change is essential to lowering future risks and alleviating economic strain. 

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.