A new government report warns that Australia could face severe climate impacts, including increased heatwaves and flooding, if immediate action is not taken. The National Climate Risk Assessment, released on Monday, outlines potential scenarios of up to 3°C of global warming. It indicates that without intervention, the risks to communities, property, and the economy will be “very high or severe.”

Energy and Climate Change Minister Chris Bowen described the threats posed by climate change as “cascading, compounding, concurrent.” The report predicts that under a 3°C increase, Australians could experience more than two additional weeks of heatwave-like conditions each year. This could lead to a staggering 400% rise in heat-related deaths, particularly affecting northern states and remote communities.

Coastal regions are also at risk, with the report forecasting nearly 200 extra flood days annually, putting around three million people at “very high risk.” In the best-case scenario of limiting warming to 1.5°C, Australia would need to allocate over $40 billion each year by 2050 to address natural disasters. In the worst-case scenario of 3°C warming, economic losses could exceed $4.2 trillion by 2100.

The report also highlights that property values in at-risk areas could drop by more than $600 billion by 2050 and $770 billion by 2090. Bowen emphasized the disproportionate impact on communities in outer suburbs, rural areas, and northern Australia, stating, “Anyone who says that climate change only matters in the inner cities should read this report and reflect on their position.”

Despite the grim outlook, Bowen pointed to opportunities for households to engage in renewable energy initiatives. He noted, “Australians have a power station on their roof, and in their garage, and on their driveway with their batteries.” He acknowledged challenges, such as international energy prices, but maintained that Australia has significant opportunities in the renewable sector.

In contrast, Nationals Senator Matt Canavan criticized the report, calling it an exercise in “scaremongering.” He argued that the government is attempting to frighten Australians into accepting higher taxes and larger government. Canavan referenced a recent US Department of Energy report, suggesting that while there are risks associated with climate change, there is no need for panic.

The Australian government is currently pursuing a target of a 43% reduction in emissions by 2030, although experts have warned that this goal may not be achievable. The new climate target for 2035 is expected to be between 65% and 75% emissions reduction, with ongoing discussions and departmental advice shaping the final decision. Climate groups are urging the government to adopt the higher end of that range, while business organizations express divided opinions. The Business Council of Australia has indicated that a 60% emissions cut would require an investment of $395 billion to $480 billion, while a target of 70% or higher could necessitate $435 billion to $530 billion in investments.