This paper underlines the impact of climate change on the economy and productivity ahead of the upcoming Australian Government's Economic Reform Roundtable. It finds that climate change and productivity are inextricably linked, concluding that any genuine economic plan for the future would be incomplete without taking into account the impact of climate change. Climate change will substantially harm productivity, particularly if action is not taken to mitigate its extent and adapt to its impacts. 

The analysis outlines the impact of climate change on the cost of insurance and food, which are among the main contributors to the high inflation that has dominated the global economy for the past three years. Collectively, food and insurance account for more than a fifth of the consumer price inflation Australia has experienced since 2022.

The paper proposes that Australia’s economic planning needs to incorporate climate policy, both in terms of climate mitigation and adaptation. While this consideration needs to take many forms, the paper proposes one basic step would be to improve transparency and availability of the climate advice given to government, such as by finalising and releasing domestic and international Climate Risk Assessments.