Climate Change Authority - Economic Modelling

 It is of uttermost importance that the Authority optimises the modelling and analysis that underpins its advice to the Government on this, and that advice is in line with the Paris Agreement - specifically keeping 1.5°C alive globally. Australia's current emission reduction commitment for 2030 requires an upward revision in order to play its part in reaching this goal and as such this should be included as a key scenario; our recent Deploy report showed 81% emission reduction is possible by 2030!

It will be important for modelling and analysis to include both the opportunities and costs associated with Australian emissions reductions targets. Not only should the Authority use methodologies that assess the cost of ‘action’ on climate change, but also the cost of climate change and ‘inaction’ in relation to the Australian economy and community. We encourage the Authority to identify and use models that take a broad approach to this such that economic, social and environmental impacts (including but not limited to air pollution, human health, agriculture, work productivity and weather related events are all captured. This should include the impact of inflation on insurance and insurability under projected climate related weather events.