{"id":9249,"date":"2025-03-25T05:10:24","date_gmt":"2025-03-25T05:10:24","guid":{"rendered":"https:\/\/terrain.org.au\/?p=9249"},"modified":"2025-03-25T06:00:00","modified_gmt":"2025-03-25T06:00:00","slug":"climate-change-and-the-cost-of-living","status":"publish","type":"post","link":"https:\/\/terrain.org.au\/climate-change-and-the-cost-of-living\/","title":{"rendered":"Climate Change & the Cost of Living"},"content":{"rendered":"[mk_page_section bg_image=”https:\/\/terrain.org.au\/wp-content\/uploads\/2022\/01\/mt-emerald-windfarm_banner.jpg” bg_position=”center center” bg_repeat=”no-repeat” bg_stretch=”true” enable_3d=”true” min_height=”500″ js_vertical_centered=”true” padding_top=”” padding_bottom=”” section_id=”donate” el_class=”donate-1″ sidebar=”sidebar-1″][vc_column][vc_empty_space height=”70px”][mk_fancy_title font_family=”none” align=”center”]CLIMATE CHANGE AND THE COST OF LIVING[\/mk_fancy_title][mk_padding_divider size=”67″][\/vc_column][\/mk_page_section][mk_page_section section_id=”great-1″ sidebar=”sidebar-1″][vc_column width=”1\/2″ css=”.vc_custom_1563789112768{padding-right: 36px !important;padding-left: 0px !important;}” el_class=”great_header_left”][mk_padding_divider size=”100″ visibility=”hidden-nb”][mk_padding_divider size=”15″ visibility=”visible-sm”][mk_padding_divider visibility=”visible-tl”][mk_fancy_title size=”28″ letter_spacing=”4″ margin_bottom=”0″ font_family=”none” el_class=”terrain-title-2″]CLIMATE CHANGE & THE COST OF LIVING[\/mk_fancy_title][mk_padding_divider size=”60″ visibility=”hidden-nb”][mk_padding_divider size=”20″ visibility=”visible-nb”][vc_column_text el_class=”sub-head” css=”.vc_custom_1742880022108{margin-bottom: 0px !important;}”]25 MARCH 2025[\/vc_column_text][mk_padding_divider size=”5″][vc_column_text css=”.vc_custom_1742881524556{margin-bottom: 0px !important;}”]Australians are feeling the pinch. Cost of living is a major concern – even with the inflation rate brought under control in the last two years \u2013 and it\u2019s likely to be the defining issue of the upcoming federal election.<\/p>\n

One of the major drivers of cost-of-living pressures is climate change. Here\u2019s how it\u2019s squeezing our household budgets, and why we need to take more action on addressing climate change and investing in the environment to reduce cost of living pressures.<\/p>\n

1. Extreme Weather and Food Prices
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\nIn the last five years, food prices have risen by 20 per cent. \u2018Unprecedented\u2019 natural disasters are becoming more commonplace. Every time a major flood, cyclone or wildfire sweeps through a community, it devastates crops, causes livestock damage, reduces yields and disrupts supply chains. And all of this pushes up food prices.<\/p>\n

Climate change is also increasing production costs more generally. Primary producers are needing to spend more on water management, pest control, disease control, accounting for increased crop losses and other adaptive measures, and inevitably there is a flow-on effect for consumers.<\/p>\n

2. Insurance and Housing Costs
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\nInsurance costs are being driven up significantly by climate change. Australians are collectively paying $30 billion more today on insurance than they were 10 years ago. The increasing frequency of natural disasters is an underlying cause, with more frequent and sizeable claims costing insurance companies more. Even disasters in other countries impact Australia by driving up the cost of reinsurance.<\/p>\n

What we are now starting to see is insurance companies either pulling out of flood-prone areas, including some areas in the Wet Tropics, or charging substantially more.<\/p>\n

Housing costs are also impacted. Extreme weather damages infrastructure, reducing housing supply and pushing up construction and rental prices. As demand outstrips supply, Australians are left paying more for housing\u2014whether they rent, own or are trying to buy.<\/p>\n

3. Rising Energy Costs
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\nAustralia\u2019s reliance on coal and gas for energy, and the industry\u2019s aging infrastructure, are significantly impacting cost of living. Russia\u2019s invasion of Ukraine in 2023 didn\u2019t help. The cost of oil, petrol, gas and diesel has increased much more than other goods. On average we are paying $30 more to fill up a vehicle\u2019s fuel tank now than we were before the COVID-19 pandemic. This directly impacts fuel and power bills. It also puts inflationary pressure on other goods, including food, due to transport costs.[\/vc_column_text][\/vc_column][vc_column width=”1\/2″ css=”.vc_custom_1563789122720{padding-right: 0px !important;padding-left: 34px !important;}” el_class=”great_header_right”][mk_padding_divider size=”206″ visibility=”hidden-sm”][mk_padding_divider size=”50″ visibility=”hidden-sm”][mk_padding_divider size=”50″ visibility=”hidden-sm”][mk_padding_divider size=”5″][vc_column_text css=”.vc_custom_1742881463921{margin-bottom: 0px !important;}”]\"\"
\nThe Future: Cost of Investing versus Cost of Inaction
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\nSome argue that transitioning to clean energy and climate adaptation is too costly. But the price of inaction is far greater. The cost of recovering from natural disasters already runs into billions \u2014 Cyclone Yasi\u2019s reconstruction bill was $6.8 billion and Cyclone Jasper\u2019s recovery costs are expected to exceed $1 billion.<\/p>\n

Without stronger climate action, future disasters will become even more expensive. The sooner we invest in solutions, the sooner we\u2019ll feel financial relief.<\/p>\n

How We Can Reduce Costs and Build Resilience<\/strong><\/p>\n

Households can reduce their carbon footprint and save money by cutting waste, conserving energy and choosing sustainable transport when they can. Broader community action is also essential. We can reduce emissions and strengthen our landscapes and communities by:<\/p>\n