• Deloitte has released a new report into the economic impact Australia faces if there is insufficient action to prevent climate change.
• If left unchecked, climate change could cost $3.4 trillion in losses to Australia’s economy by 2070.
• It could also lead to 880,000 job losses.
• Visit Business Insider Australia’s homepage for more stories.

A new report from Deloitte Access Economics revealed inaction on climate change will cost Australia a $3.4 trillion loss in GDP and result in 880,000 job losses by 2070.

“Such economic losses are nearly equal to the impacts of covid on the Australian economy today, occurring by 2055,” the report read.

If the world doesn’t address climate change, it could lead to global warming above 3°C by 2070, which will have wide-ranging impacts in Australia. Climate change will affect our ability to work outside, causing issues like heat stress, and impact where we live and holiday, with situations like rising sea levels affecting the land, the report said.

Plus, it will cause more intense rain, more drought, higher temperatures, warmer oceans and harsher fire weather.

“We could even see the death of the Boxing Day Test and weekend club sport if things go on unchecked,” the report added. “That is a loss of the Australian way of life.”

The industries that will be hardest hit by economic losses due to climate inaction include mining, manufacturing, services, and trade and tourism.

Deloitte also highlighted the top six industries that are most at risk to the physical damage caused by climate change, which include manufacturing, trade, agriculture, mining, services (including tourism) and construction.

There was also a crossover between the impact of COVID-19 and climate change.

“The risks presented by covid and climate change are not mutually exclusive,” the report said. “Industries and workers that are at risk as the world fights covid, are the same ones that are exposed to the risks from a warming world.”

More broadly, Deloitte pinpointed the states that will be most affected by a warming climate, including Queensland, Western Australia and the Northern Territory. Western Australia stands to take a 9% hit to its GDP by 2070 compared to the Northern Territory (12%) and Queensland (14%).

“Their economies feel the brunt of warmer climates and the longer-term consequences of becoming uncompetitive against the states with comparatively cooler temperatures and industrial structures less dependent on the climate,” the report said.

If Australia was to take more action on climate change, it would add an estimated $680 billion to the economy and a 2.6% increase to the GDP by 2070. Not to mention add 250,000 extra jobs.

This can be done through Australia shifting to a low emission economic structure – creating lower emissions technologies and processes across the economy, the report suggested.

The report also mentioned that limiting global warming by no more than two degrees celsius by 2050 “is an economic must”.

Businesses in Australia have made pledges to become more energy efficient. Atlassian pledged to achieve 100% renewable electricity globally by 2025 while Aldi plans to use 100% renewable electricity in its Aussie operations by the end of 2021.

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