Climate change could have economic spin-offs, a new government report says.
The Intergenerational Report released on Thursday includes a chapter on "managing the environment", which has been a feature of previous versions of the five-yearly economic and budget update.
The report sets out the government's plan to reduce carbon pollution through its $2.55 billion Emissions Reduction Fund.
But it also says "some economic effects may be beneficial".
"Where regions become warmer or wetter this may allow for increased agricultural output - while others may be harmful," the report said.
"For example, lower rainfall may reduce crop yields, or transport infrastructure (such as roads, ports and rail networks) may become more susceptible to damage from extreme weather events."
The report reinforces the government's aim to cut emissions by five per cent on 2000 levels by 2020.
But, despite the report being about Australia in the period to 2055, it does not discuss a possible new target.
"Australia will meet its Kyoto target for 2020 and will join with the international community to establish post-2020 targets with the aim of reducing global greenhouse gas emissions," it said.
"The international community has agreed to aim to keep global warming to a less than two degrees celsius increase above pre-industrial climate levels."
The intergenerational report produced by Labor in 2010 found that unmitigated climate change would leave Australian GDP in 2100 about eight per cent lower than the level it would be in the absence of climate change.
Former Liberal treasurer Peter Costello's 2007 report concluded: "There does seem to be consensus around the fact that significant levels of global warming imply losses in global GDP over the longer term that should be factored into the policy choices made today."
Share
