2025-03-18
Greens campaigners should highlight the many ways that global heating is making the cost of living crisis even worse, while also promoting our evidence-based policies to reduce household energy costs
By Eddie Marynowicz, Co-Convenor Greens (WA) Climate Crisis Working Group
The current election cycle tells us that the cost of living and housing are the key issues that concern voters. While this is true, what has unfortunately lost prominence is the climate crisis. Much though we’d like it to go away, it is still here and, as Cyclone Alfred in Queensland and flooding in Albany have recently shown us, it is having increasingly severe and consequential impacts on our everyday life.
The Fossil Fuel Industry continues with its disinformation and greenwashing, bombarding us with ads that tells us how wonderful they are and how they are here to save us. Nothing could be further from the truth.
What has been little discussed is the connection between Climate Change and Cost of Living and Housing. We are said to be entering the “Era of Climate Consequences”, consequences which are increasingly affecting us all, exacerbated by an economic ideology that values profit and growth above all.
Food Prices: As agricultural productivity is put under pressure by droughts, floods and changing rainfall patterns, lower yields and crop and livestock losses will occur more frequently. Farmers will incur their own increased costs to continue operating, all of which will drive prices up.
Extreme weather events such as flooding and bush fires disrupt supply chains, and cause shortages and food price spikes.
Insurance Costs: Insurance companies are in the business of risk management. The industry has been well aware of the damage and costs that climate change can inflict for many years if not decades. As events proliferate, insurance costs go up, in some cases to the point of being unaffordable. Rather than blame the insurance industry, we should hold responsible the Fossil Fuel Industry and our inept politicians who have enabled this.
Energy Costs: Higher temperatures will increase the demand for air conditioning and cooling, leading to higher electricity consumption and costs. Continuing use of gas for electricity production, as is the policy of federal and most state governments, will inevitably increase costs for domestic, commercial, and business users.
On a larger scale, the need to upgrade and protect energy infrastructure from extreme weather will require significant investment, which almost certainly will be passed on to consumers through higher energy prices.
Water Costs: Water availability resulting from reduced rainfall and prolonged droughts, as is happening in south-west WA, will strain already depleted water supplies, leading to higher costs for water. Investments in desalination plants (a third currently planned in Alkimos, and one in Albany), and water recycling infrastructure to ensure reliable water supplies will also increase costs.
Health Care Costs: As it gets hotter, heat-related illnesses will put strain on the healthcare system and costs. Changes in climate can expand the range of diseases carried by insects, such as dengue fever and Ross River virus, also leading to higher healthcare costs.
Transportation Costs: Transport costs are embedded in almost everything we buy, whether it’s your morning coffee, a new printer, a visit to the hairdresser, or a bottle of wine. Roads and railways are vulnerable to damage from extreme weather events, as we have seen in the Kimberley, the Eyre Highway across the Nullarbor, and most recently in Queensland and NSW. Repairing and upgrading transportation infrastructure requires substantial investment, potentially leading to higher transportation costs and, consequently, higher prices for goods and services.
Housing: Housing affordability and availability is an immense issue created by decades of ongoing political incompetence, disinclination to act, and greed. Systemic changes re social housing, rental protection, negative gearing, etc. have not been addressed and indeed mostly have been made worse. Climate change alas is adding further hardship.
In addition to increased insurance costs, building new homes and retrofitting existing homes to withstand extreme weather events will be more expensive. Governments are slowly introducing higher standards and regulations to encourage this, which will be reflected in higher housing prices and rental costs.
Temporary displacement caused by extreme weather will strain existing communities, services, and infrastructure.
In low lying areas affected by coastal erosion and repeated flooding, and as areas become uninsurable, land availability will decrease. People will relocate to more resilient urban centres, leading to increased costs for new housing and more strain on rental availability and affordability.
And of course, developers, builders and tradies will face their own increased costs which will inevitably be passed on to the consumer.
Disaster Recovery Costs: Cyclone Alfred will cost the March 25 budget at least A$1.2 billion, hit growth and put pressure on inflation according to Treasurer Jim Chalmers in a pre-budget speech on 18 March 25. “It could also lead to upward pressure on inflation. From building costs to damaged crops raising prices for staples like fruit and vegetables.”
Cyclone Alfred was just one event. As we see extreme weather events increase in frequency and magnitude, the cumulative impact of these events will strain economic growth, increase costs for businesses and households, and create long-term financial challenges.
The links between climate change, cost of living and housing are many and varied. Climate change is scary and many people knowingly or unknowingly blank it out; all made worse by shifting baseline syndrome, a fancy way of saying that as things gradually get worse, we get used to the new norms and forget how things used to be.
Nevertheless, most people do care and would like to see far stronger action from our state and federal governments, evident in the declining vote for the two major parties and the increased vote for the Greens and climate concerned independents.
With our strong result in the state election, our WA Greens representatives will be able to fight more forcefully for climate action. For example, in the balance of power position we will have, we can negotiate the implementation of the recently announced (14 Jan 25) policy “Renewable Energy for All”.
The policy covers a Zero Interest Loan Scheme for home renewable energy and to improve home energy efficiency; a Home Energy Rebate Program aimed at lower income households; a Renewables for Renters initiative; and a Solar for Apartments scheme.
As MLC member Brad Pettitt said, this will “help 200,000 households move permanently to cheaper and cleaner electricity from solar power. This policy isn’t just fantastic for the environment, it will massively benefit Western Australians during this cost of living crisis as all electric homes can be up to $3000 a year cheaper to run.”
And it is interesting to note that our policy predated by 6 weeks Roger Cook’s promise of battery subsidies only.
Overall, the increasing impacts of climate change has led to a higher cost of living in Australia as various sectors of the economy adapt to the new challenges posed by a changing climate. Effective mitigation and adaptation strategies and government interventions will be crucial in managing the challenges ahead.
[Opinions expressed are those of the author and not official policy of Greens WA]