Climate action has a $30 billion price tag in Australia's first carbon budget as the nation faces more frequent and severe natural disasters.
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The 2022/23 federal budget analysis warns the physical impact of climate change can reduce economic activity, erode the tax take, and put upward pressure on government spending.
Higher temperatures and a growing number of very hot days could reduce working hours in some industries and increase the cost of doing business.
But uncertainty around the magnitude and timing of the climate hit to Australia, and the pace of the global transition to net zero, means there is uncertainty about the fiscal impact.
The October floods alone are estimated to cut around 0.25 per cent off growth in the current quarter, and add to inflation for months ahead with farms and orchards damaged and supply chains cut.
The budget, released on Tuesday, builds on the Labor government's climate laws, which brought in a tougher 2030 emissions reduction target to put Australia on a trajectory for net zero by 2050.
Some $20 billion to rewire the nation for renewable energy takes the lion's share, along with $630 million for a new disaster ready fund.
Some $1.9 billion for a powering the regions fund, $275 million for driving the use of electric cars, and $224 million for community batteries to support household solar are also on the climate books.
Contentious carbon capture and storage technologies get $135 million, and support for energy security and reliability $137 million.
Re-establishing international climate leadership will cost $296 million. This includes $200 million in additional development assistance for Indonesia through a climate and infrastructure partnership, and $50 million to finance Pacific infrastructure.
Building the federal government's "climate capability" has been assigned $194 million, with $102 million to restore the Climate Change Authority and $64 million to rebuild Treasury's climate modelling capability.
The government is also committed to new requirements for large companies and financial institutions to make "clear, credible and globally comparable" disclosures on climate risk.
Reef and river projects, drought hardiness and a plan for rising insurance premiums are also included.
There's $63 million for small businesses to build energy efficiency, and $8.1 million for seaweed farmers.
A new national health sustainability and climate unit will be set up to inform Australia's health response to climate change.
The total price tag of key climate spending is $24.917 billion through to 2030, according to the first analysis of climate change released with a federal budget.
On top of that, funding will continue to the Clean Energy Finance Corporation, Australian Renewable Energy Agency and Clean Energy Regulator for new technologies and new industrial processes.
This budget introduces transparency around climate-related spending, but should not be mistaken as a total assessment of climate action.
"It does not consider the flow-on impacts of the investment being made, or whether the measures will be sufficient to reach emission reduction and economic transition goals," the budget papers explain.
Critics have warned current targets will fail to do Australia's fair share in helping to limit global warming to 1.5 degrees.
Australian Associated Press
