After alarming climate risks were revealed this week, the Australian Government's plan to adapt to climate change, the National Adaptation Plan, was released. Let's hope it is as stated to be, a step along the way, with some more focus on place-based, private sector action in the future.
Some assumptions seem to be embedded in the plan:
- Private sector actors will act to build broader economic resilience to climate change.
- Local government and insurers can prompt private households and businesses to invest in resilience measures.
- The programs and policies at state and national levels are broad enough to encompass the development of local financial instruments to drive adaptation.
There are a great differences between grant programs currently nominated in the plan and a local Climate Bond or incentivising financial product/service leveraging action locally where climate impacts manifest.
To me it seems like the Australian Government is hoping climate disclosure reporting will awaken the private sector to:
- realize their adaptation risks
- pursue risk management strategies and opportunities, as well as, collaborate to leverage the best returns.
You can read more about the National Adaptation Plan here.

