Adaptation across domains

 

Adaptation involves a range of broad, cross-sectoral challenges.

The National Climate Resilience and Adaptation Strategy operates across four domains – natural, built, social and economic – to drive forward adaptation.

There are many connections between and across the domains. Some climate impacts may affect more than one domain.

  • Natural Domain: The landscapes, seascapes, ecosystems, agricultural lands, and diverse plant and animal life within Australia and its ocean territory.
  • Built Domain: Surroundings, structures and infrastructure made using materials and human resources to facilitate life, health, work and play.
  • Social Domain: People, their communities, their culture, institutions, support systems and their interactions.
  • Economic Domain: The production and consumption of goods. Productivity, financial systems, and the economy.

Natural Domain

The natural domain includes our plants and animals, our ecosystems, landscapes, seascapes and waterways, and the industries that rely on them.

Ensuring our natural environment and agricultural industries can adapt to the changing climate will preserve our natural capital, improve productivity, and protect heritage.

Australia’s biodiversity and ecosystems are some of the most diverse on Earth. However, there are limits to the capacity of natural systems to adapt to the impacts of climate change. Climate change impacts species health and distribution and exacerbates the impacts of other environmental pressures.

The Australian Government’s Threatened Species Action Plan 2022-2032 sets out a focus on climate change adaptation, setting out targeted actions to improve the resilience of native species and places. To help achieve this, the Australian Government has committed an addition $224.5 million towards the Saving Native Species measure to meet and address priorities identified by the Threatened Species Action Plan. The Government is also investing $90 million to employ and train up to 1,000 Landcare Rangers to help conserve and restore Australia’s environment and fund a Landcare Facilitator to coordinate community Landcare activities and improved knowledge sharing.

Australia’s coasts, oceans and water resources hold enormous economic, cultural, social and environmental significance.

The Reef 2050 Long-Term Sustainability Plan is the Australian and Queensland Government’s overarching strategy for the protection and management of the Great Barrier Reef to improve its health and resilience to climate change. The Australian Government is investing a total of $1.2 billion by 2030 to support the plan, which includes adaptation measures to manage the impact of climate change.

The $100 million Australian Government Oceans Leadership Package includes funding to protect and restore blue carbon ecosystems like seagrass and mangroves that play a key role improving the health of coastal environments and protecting native species and habitat. These ecosystems are up to fifty times better at storing carbon out the atmosphere than terrestrial forests. Additionally, the Australian Government committed $20 million towards the Reef Builder – the Coastal Communities Recovery Project to restore native shellfish reefs (oyster and mussel) and create employment opportunities for communities at 13 sites around Australia by June 2023

Our environment provides critical services for primary industries, including agriculture, forestry and fisheries.

The Australian Government is investing $10.8 million to improve ocean and marine park management in Australia and to strengthen our international environmental leadership in ocean policy.

Prime Minister Albanese is a member of the 17-nation High Level Panel for a Sustainable Ocean Economy (Ocean Panel), which is working to accelerate and amplify action to help the world transition to a sustainable ocean economy where jobs are secured, ocean health is protected and prosperity is shared equitably.

Australian farmers, fishers, foresters and local communities are active stewards of the environment, and the Australian Government is committed to supporting them in this role.

For example, both the Agriculture Biodiversity Stewardship Package and Future Drought Fund support on-ground work and natural resource management activities to strengthen sustainability and build drought preparedness and resilience.

First Nations people have cared for Country for thousands of years and, in implementing traditional and innovative land management practices, demonstrate how the natural environment can be better prepared for the future climate.

For example, across Australia, Traditional Owners are working with land and fire management agencies to reintroduce the proactive burning of small areas at different points in the year.

The Australian Government will continue to facilitate partnerships to incorporate Traditional Knowledge and western science. There are opportunities to make better use of First Nations peoples’ ecological knowledge to improve the health of ecosystems.

The Australian Government is doubling the number of Indigenous Rangers who use Traditional Knowledge to manage environmental outcomes, is committing $15.9 million over 4 years for the establishment of a Torres Strait Climate Centre of Excellence to enable First Nations-led adaptation action, and is investing $66.5 million to support 10 new Indigenous Protected Areas, helping to use the unique contribution of First Nations people to promote adaptation action.

Australia’s economy and communities are dependent on our natural capital. Healthy ecosystems provide critical services such as fresh water, regulation of regional water cycles, soil fertility and crop pollination, carbon storage, recreation, and buffering from the impacts of hazards.

These services, together with industries such as tourism, agriculture and fisheries that depend on natural resources and assets, are vital for both our prosperity and wellbeing. A changing climate highlights the need to address increasing risks to these ecosystem services.

The Australian finance and banking sectors are increasingly looking to invest in conserving and restoring our natural capital. In 2020, G7 Finance Ministers endorsed the market-led Taskforce on Nature-related Financial Disclosures. The Taskforce aims to deliver by 2023 a disclosure framework to assist companies identify nature-related risks and opportunities, including from climate change.

The Australian Government is supporting these efforts through the development of natural capital metrics, environmental economic accounts and market-based approaches to provide incentives to invest in environmental management and protection.

The Australian Government is implementing the National Strategy for Environmental Economic Accounting which provides a consistent approach to linking environmental with social and economic data.

Built Domain

Australia’s built environment is more than our buildings. It includes green and urban spaces, cities and towns, and the networks of roads, transport, energy, water and telecommunications infrastructure that connect them.

Adapting the built environment to a changing climate provides resilient, safe, and liveable spaces for Australians to live, work, play, and innovate.

In cities, the effects of rising temperatures can be exacerbated because of the urban heat island effect. This effect is caused by the prevalence of heat-absorbing materials such as dark-coloured pavements and roofs, concrete, urban canyons trapping hot air, and a lack of shade and green space.

Gradual impacts like sea level and temperature rise, and extreme events like floods, heatwaves and bushfires, can also affect the liveability of our urban environments and pose challenges for ageing publicly and privately owned assets and infrastructure systems that were not designed and built with climate change in mind.

Australian governments, experts, industry, and communities continue to develop standards and practices to improve the resilience of the built environment to climate change.

For example, the Darwin Living Lab, a collaborative project between the CSIRO, the Australian Government, Northern Territory Government, and the City of Darwin is testing and evaluating heat mitigation measures to inform tropical urban design by using real world experiments. A key element of this initiative is the development of green infrastructure strategies for Darwin, redesigning green spaces in the city to be useable, attractive, cooling, and beneficial to residents.

Other innovative ideas will support Australia to adapt to rising temperatures and increased frequency of heatwaves. For example, different materials have been trialled in Adelaide to reduce road surface temperatures in order to cool surrounding areas and combat the urban heat island effect.

Recognising the increasingly complex role infrastructure plays in supporting resilience, Infrastructure Australia and Infrastructure NSW partnered on the research project Pathway to Infrastructure Resilience. The project aims to increase resilience by identifying opportunities to improve how infrastructure is planned. This included collaboration with 600 experts across Australia from government, industry, peak bodies, academia, and civil society organisations. A Pathway to Infrastructure Resilience recommends a whole-of-system, all-hazards approach to resilience planning that focuses on strengthening an infrastructure asset, network, and sector, as well as the place, precinct, city, and region where the infrastructure operates.

The Australian Government is investing in adaptation and resilience building. The Disaster Ready Fund will deliver $200 million per year across Australia to support communities across the country to prepare for natural disaster by investing in mitigation infrastructure projects. 

Social domain

The social domain includes our people, our communities, culture, institutions, support systems, and the interactions between them. This includes families, health and education systems and services, social services and emergency management services.

Action taken now to increase the adaptive capacity of society will position Australian communities to thrive into the future, despite a harsher climate.

There are strong relationships between the quality of the environment – of air, water, and food systems – and physical and mental health and wellbeing. These relationships need attention as climate change challenges the health and wellbeing of Australians and the capacity of its health and social support systems, now and in the future.

As we adapt in the social domain, particular attention should be given to how vulnerable communities experience the impacts of climate change.

Adaptation must be inclusive and account for the underlying factors that contribute to vulnerability, such as issues related to geography, culture, age, gender, diversity, disability and other socioeconomic status.

For example, rural communities can be particularly vulnerable to increasing droughts, bushfires and heatwaves. Heatwaves can also disproportionately impact the elderly, children, outdoor workers, and those already suffering from chronic disease.

Around Australia, many local governments now have heatwave plans that clarify responsibilities and outline measures that can enhance long term community resilience.

The Australian Government’s consideration of adaptation will include a focus on improving equality and fairness for vulnerable communities. Australia’s efforts to adapt to climate change are supported by strong social institutions and assets. These include high levels of education, a strong public health system, and leading climate and health research.

Research to date has underpinned robust action to address chronic diseases and environmental health threats. In response to the catastrophic bushfires of 2019-2020, the Australian Government, through the Medical Research Future Fund, is investing in research into the physical and mental health impacts of bushfire smoke.

The National Health and Medical Research Council has also established a special initiative to strengthen the Australian health system’s resilience, preparedness, and responsiveness to changing environmental conditions and extreme weather events.

There are many other initiatives currently being implemented to improve the resilience and adaptive capacity of Australia’s social domain.

For example, the Australian Capital Territory (ACT) Government has developed a Wellbeing Framework, and reports on the factors that impact on the wellbeing of Canberrans. The ACT Government is also helping those who rent housing to adapt their homes to climate extremes, including through workshops, factsheets, assessment tools and guides, and free advice on how to reduce energy costs.

Economic domain

Australia has a strong economy that is projected to continue growing over the next 40 years positioning Australia to respond to future challenges and seize opportunities.

Climate change has the potential to impact our economy in many different ways. Some of our most important industries and biggest employers depend on the climate, such as the agriculture and tourism industries. Climate change could impact the productivity and competitiveness of certain industries, the nature of work in those industries, future occupations, and structure of our economy.

Better understanding and proactively managing climate change impacts will help Australian businesses to continue to prosper, and our people to continue to have access to secure and meaningful jobs and opportunities in our future climate.

Making efficient and well-targeted investments in adaptation now can reduce risks and avoid significant costs in the long term, while taking advantage of opportunities.

For example, increasing the climate resilience of our agriculture industry will allow us to remain competitive in global markets, providing employment for Australians and potentially attracting further investment – boosting our capacity and productivity.

Similarly, investing in climate resilient infrastructure will help to avoid locking in climate risk and future costs to repair, upgrade or replace the infrastructure which could reduce future economic growth and productivity.

Australia’s financial sector will continue to play an important role in shaping how we plan for and adapt to climate change: 

  • Banks and lenders are considering the impacts that climate change could have on borrowers and capital markets.
  • More businesses are seeking to understand, manage and disclose climate risks, as parts of efforts to strengthen corporate governance and maintain investor confidence.
  • Financial regulators are providing guidance to businesses to ensure climate risks are being appropriately managed and consumers are protected.

Insurance can also be an important risk management tool for individuals and businesses that exposed to climate-related risks.

As the climate changes and natural disaster and extreme weather risks increase, it is likely that the cost and availability of insurance will be affected. Some individuals and businesses may find that purchasing or amending insurance policies helps to transfer some risks at a fair cost. Others may find that actions to reduce their exposure to risks, and therefore their reliance on insurance, are more effective. Consumers will need to carefully consider their own circumstances when making decisions on the costs, benefits and risks of different insurance options.

The Australian Government has announced its intention to establish a reinsurance pool covering the risk of property damage caused by cyclones and cyclone-related floods. The pool will seek to improve the accessibility and affordability of insurance for households, strata and small businesses in cyclone-prone areas, which are mainly located in northern Australia.

The Hazard Insurance Partnership and Strategic Insurance Project was announced by the Australian Government in October 2022 to help reduce the cost of insurance in communities at risk of natural disasters and drive better outcomes for insurance holders. Specifically, it will identify the most pressing insurance issues in high-risk areas and test the best policy solutions to reduce insurance costs. As part of the project, the Australian Climate Service (ACS) will also establish an enduring dataset on insurance affordability, underinsurance, and non-insurance issues to help reduce the risks faced by policy holders. The package also includes a forum for cooperation between the Australian Government and the insurance sector which will address issues driven by natural hazards

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