Carbopedia
New South Wales
Impacts and Costs
NSW Department of Climate Change
- Hail storms may become more frequent and more severe in Sydney, with hailstones potentially reaching 17 centimetres in diameter. This would lead to extensive property damage and insured losses. For example, the 1999 Sydney hailstorm (which had 9 centimetres hailstones) resulted in $1.7 billion in insured losses, 1 death and 500 injuries. 500 people were made homeless, and 24,000 homes and 70,000 motor vehicles were damaged.
- Uncontrolled climate change would put at risk the State's agricultural production, valued at $7.3 billion in 2006-07.
- Drought frequency is projected to increase by up to 40% by 2070.
- Coastal flooding, erosion and other hazards currently cost New South Wales around $200 million a year.
- It is plausible that uncontrolled climate change could see global sea level rise of 1 metre or more by 2100 and more intense storms threatening coastal housing and infrastructure.
- More than 200,000 buildings along the State's coast are vulnerable.
- If sea-levels rose by 0.9 metres, 4700 residential building lots along the Lake.
- Macquarie waterway foreshore would be inundated.
- As the number of very hot days (above 35°C) increases more people are likely to suffer heat-related illnesses and death, with the elderly particularly vulnerable.
- Drought - likely to become more frequent as a result of climate change - has the potential to disrupt electricity generation capacity and affect the reliability of electricity suppliers.
- Increases in temperatures, particularly in the summer months will increase energy demand.
- Rising temperature and increased evaporation will increase the risk of bushfires.
- For example, the number of 'very high' to 'extreme' fire hazard days in the Greater Blue Mountains World Heritage Area could increase by up to 75 per cent by 2050, with up to a 25 per cent increase in area burned. Renowned for its species diversity, this area includes 13 per cent of the world's eucalypts.
- The Australian Alps, which are home to highly vulnerable alpine flora and fauna, are highly susceptible to warming.
- By 2050, the total alpine area with at least one day of snow cover is likely to decrease by 85 per cent; the area with at least 60 days of cover could shrink by 96 per cent. A reduced ski season and diminished area of snow cover could cost the $550 million ski industry around $225 million.
- Species such as the Mountain Pygmy Possum, which are adapted to highest elevations and coldest environments, will have nowhere to retreat as the climate warms. A 1°C temperature rise would wipe-out the entire climatic habitat of the Mountain Pygmy-possum.
Regulatory Landscape
- The NSW Government is committed to reduce GHG emissions from 158.2 million tones (2005 level) to 63.3 million tones by 2050. Such reduction target affects all level of business.
- Under the NSW Greenhouse Gas Abatement Scheme electricity retailers must meet mandatory annual emissions reduction targets. It is likely that this mandatory scheme will have a flow on effect to all level of business.
- All new residential development is required to achieve a 40% reduction in greenhouse gas emissions, compared to the average NSW home.
- New South Wales is committed to establish a national emissions trading scheme no later than 2010.
- The NSW State Government implemented strategies to reduce business uncertainty by establishing carbon constraints in order to promote investment and innovation. This decision will provide a clear signal of intent, assist industry risks management, provide investors with confidence and promote technical innovation in a carbon constrainted future.
New South Wales is also committed to:
- Meet the Kyoto target (108% of 1990 levels) by 2012.
- Energy efficiency requirements for new housing (5 Star Energy Rating).
- Introduction of a green vehicle registration program to allow drivers to offset their vehicle emissions.