The analysis 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.
The National Climate Risk Assessment, yet to be released to the public, includes important forecasts, modelling and information for consumers and investors about the severity and cost of weather extremes and natural disasters.
The Australia Institute 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.
"Australians should see the truth of the climate risks we face before the government locks in a 2035 emissions reduction target," said David Pocock, Independent Senator for the ACT.
"Setting an emissions reduction target without knowing the extent of climate risk would be like planning a road trip without having access to a map.
"This kind of assessment isn't an optional extra; it's at the core of helping us protect the people and places we love."
"Climate change is going to drive down productivity in all sorts of Australian industries. Extreme weather events will drive up costs and reduce output in industries ranging from agriculture and construction to tourism and the health sector," said Richard Denniss, Executive Director at The Australia Institute.
"As South Australians know well, warm waters don't just mean better swimming, they can mean destruction of fisheries, tourism and entire ecosystems.
"The simple fact is that parts of Australia are going to become uninsurable and that will have dire consequences, not just for the people who live in those regions, but for the insurance and banking industries as well.
"Discussing long-run economic reform without putting all the climate facts on the table is like discussing interest rate policy with no data on inflation or budgetary policy with no data on government spending."
