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The ���������¼� Institute for Climate Risk & Response (ICRR) hosted its inaugural conference on October 16 and 17, with the second day featuring an Industry Forum that brought together 150 participants from business, government, academia, and community organisations.

By uniting industry leaders and climate experts, the event marked a significant step forward in addressing the growing risks of climate change and the opportunities presented by the transition to a low-carbon economy. 

ICRR Director, ���������¼� Science Professor Ben Newell, reflected on the conference: “Both events were very well-attended, and I was truly inspired by the depth and breadth of conversations, insights, and discussions.” 

He also emphasised the importance of fostering interdisciplinary scholars focused on 'climate translation,' noting that the Early Career Researcher (ECR) workshop achieved this goal. “Presentations ranged from the impact of climate change on crop yields to factors driving trust in climate scientists, sparking valuable cross-disciplinary learning. It was heartening to see the conversations continue during breaks and networking,” he said.

Professor Newell also highlighted the success of the Industry Forum, which focused on engaging industry and government. “From the stirring opening address by The Hon. Matt Kean, who urged us to be ambitious in pursuing climate-positive policy, to the closing discussion on Australia’s potential to lead on climate action, attendees were exposed to diverse voices and data, all pointing to productive ways to collaborate on addressing climate risks and opportunities.”

The cost of climate risk

In his opening keynote, the Hon. Matt Kean, Chair of the Climate Change Authority and former NSW Treasurer, underscored the urgency of addressing climate change and transitioning to a low-emissions world. 

Referencing the , he said natural disasters cost the Australian economy $38 billion annually, which could reach $73 billion by 2060, even under a 'low emissions scenario' aimed at limiting global temperature rise to 1.5°C above pre-industrial levels. He said the cost could increase to more than $100 billion annually under a higher emission scenario.

He also discussed the , which has identified threats to financial systems, health, food security, and infrastructure. He highlighted the importance of renewable energy, already accounting for one-third of Australia’s electricity generation, and called for government policies that support renewable investments and adaptation strategies.

Mr Kean concluded by urging delegates to take immediate action, warning that the costs of inaction on climate change would be significantly higher in the long run. He said: “We saw the worst drought that our state had ever seen, followed by the worst bushfires that our state had ever seen, and the most expensive flooding event in our nation's history, with the Lismore floods. 

“So for those of you that say that the cost of acting on climate change is too high, let me tell you, as the [former] Treasurer of NSW, I had to count the cost of us not acting on climate change.”

Industry’s role in addressing climate risks

The forum emphasised the crucial role of industry in accelerating climate resilience and responding to climate risk. Across various panel discussions, experts explored how businesses can mitigate the risks of climate change while seizing new opportunities.

For example, a panel on the impact of climate change on insurance affordability, moderated by ICRR Industry Scientia Academic and climate extremes expert Dr Tim Raupach, discussed the growing financial pressures on Australian households. 

Speaking on the panel, Sharanjit Adam, Principal – Climate Analytics at Finity, noted that 1.6 million Australian households face unaffordable home insurance, with premiums exceeding one month’s gross income. He explained that “home insurance premium increases reflect how climate change is already having a financial impact on Australians today.”

Also speaking on the panel, Dr Tom Mortlock, Head of APAC Climate Analytics at Aon, discussed global trends in insurance losses due to climate-related disasters, particularly floods and severe thunderstorms. He highlighted the broader impacts of extreme weather on the global reinsurance industry and how these trends could affect Australia’s insurance market. 

Dr Mortlock emphasised that even small changes in global temperatures can have outsized impacts on extreme weather events, reinforcing the need to address climate risks. “One to two degrees of warming is a big deal for extreme weather. If you shift the mean of the distribution, you shift the extremes or the tails, and you shift the change in the tails much more proportionally than the mean. This is where the real impact on extreme weather events lies,” he said.

The urgency of climate change adaptation

Reports show Australia accounts for about . Without stronger climate policies, its coal and gas exports are projected to remain unchanged until at least 2035. 

At the same time, global temperatures have risen by approximately , with 2023 and 2024 experiencing record-breaking heat. This persistent warming trend underscores the urgent need to limit global temperature increases to below 1.5°C, as set out in the Paris Agreement, to prevent more severe climate impacts.

The science is undeniable: Australia and the world are in a climate emergency, and urgent action is needed. Over the past year, the ICRR has successfully brought together diverse voices to engage in meaningful discussions on navigating the challenges of climate risk and response. Attendees left with a shared understanding that addressing climate change is not only a moral imperative but also an economic necessity. 

Professor Newell added: "We are finally at the beginning of a step-change in the way that governments, businesses and the general public are thinking about climate change. 

There is a shared understanding that we all need to act and act fast; initiatives like the ICRR are crucial in capitalising on that shared enthusiasm, and we look forward to many more opportunities to work with the community over the coming year."

Through thought-provoking dialogue and actionable insights, this year’s ICRR events provided a platform for stakeholders to address climate risk via strategic investment, innovative policy, and sustainable business practices. This foundation of collaboration underscores ICRR's commitment to advancing climate action.

Learn more about the recent Early Career Researchers Workshop here. Join the ���������¼� Institute for Climate Risk & Response community  to stay updated on climate news and events.