As the Coalition quarrels over net zero, insurance leader calls for genuine climate action

Steve Johnston hosted a roundtable at Parliament House, telling politicians, planners, and housing groups they needed to take climate change into account when responding to the housing crisis.

“For too long, the housing and resilience sectors have operated in isolation, leading to too many homes being built in high-risk areas susceptible to flood, fire, and cyclone,” Mr Johnston warned.

He said expanding major cities into areas with natural risks—such as low-lying riverside areas susceptible to floods or the edges of fire-prone bushland—was trying to solve one crisis by causing another.

“While these greenfield areas often offer lower upfront costs for developers, they present a significant and growing risk to homeowners and communities.”

“Without proper thought and discussion, we will only see a deepening of inequality, push more people into financial hardship, and widen the divide for our most vulnerable community members.”

Experts at the Australia Institute have repeatedly and publicly said that while some people will never believe the science around climate change, their insurer certainly does.

Prior to the Black Summer bushfires in 2019, the Australia Institute proposed a levy on the nation’s biggest polluters to create a fund that would raise billions to prepare for—and respond to—climate-related disasters.

“According to our research, over 2 million people already live in homes that aren’t fully insured. As climate change continues to push up insurance prices, this problem is only going to get worse,” said Jack Thrower, senior economist at the Australia Institute.

“Instead of pouring more fuel on the fire with billions in fossil fuel subsidies, it’s time the government taxed the fossil fuel industry to create a National Climate Disaster Fund that could help pay for the costs of disaster response, recovery, and adaptation.”

Mr Johnston later spoke to journalists in the parliamentary press gallery, saying the nation’s leaders should focus on preparing for more frequent and intense natural disasters, rather than relitigating the debate over net-zero targets.

His comments were endorsed by New South Wales Planning Minister Paul Scully.

“Weather events are getting more extreme, more frequent, and less predictable—and while we face that challenge, we’re also grappling with the critical need for more housing,” Mr Scully said.

“The challenge is not just land-use controls for new homes, but in recognizing the legacy of development and making sure that we encourage resilience so that those least able to afford it are not left behind.”