The Federal Government has announced an inquiry by the Productivity Commission into the regulation and policy framework that would best enable effective climate change adaptation.

 

The Minister for Climate Change and Energy Efficiency, Greg Combet, and the Assistant Treasurer, Bill Shorten, said the inquiry would review regulations and policies that may be barriers to effectively adapting to the impacts of climate change and examine the costs and benefits of options to remove those barriers.

 

The Commission’s inquiry will aim to assist governments in indentifying changes in regulation and policy settings that may be necessary to ensure the country adapts to a changing climate at the lowest possible cost while taking full opportuntities that a changing climate may bring.

 

The inquiry will assess market-based and non-market based methods to promote effective adaptation including the scope for appropriate action by all levels of governments.

 

The Productivity Commission will hold public hearings and release a draft report for public comment, before delivering a final report to the Government within 12 months.

 

The scope of the inquiry has been identified as the following:

 

  • examine the costs and benefits of the options to address those barriers where it is feasible to do so, including a 'no change' (maintaining the status quo) option; and
  • assess the role of markets (including insurance markets) and non-market mechanisms in facilitating adaptation, and the appropriateness of government intervention.

 

The Commission is to provide both a draft and a final report, and the reports will be published. The Government will consider the Commission's recommendations, and its response will be announced as soon as possible after the receipt of the Commission's report.