Have your say on Australia's proposed climate adaptation plan

What you need to know

• In March 2024, the Federal Department of Climate Change, Energy, the Environment and Water (DCCEEW) released its National Adaptation Plan Issues Paper for consultation. 
• The Issues Paper is part of the Australian Government's National Climate Adaptation and Risk Program, which will include Australia’s first National Climate Risk Assessment and a National Adaptation Plan.
• The National Adaptation Plan will provide a blueprint for adapting to nationally significant climate risks and responding to the issues identified by the National Climate Risk Assessment.
• The first pass of the Risk Assessment identified eleven priority risks, including natural environment, primary industries and food, regional and remote communities, health and social support, and infrastructure and built environment.

What you need to do

• The National Adaptation Plan is a timely reminder that significant climate-related risks must be addressed in risk management, business continuity and operational resilience plans.
• Businesses should consider the Issues Paper and whether they should participate in consultation either directly or through a relevant industry body.  Submissions can be made via DCCEEW's consultation hub until 11 April 2024.

Issues Paper part of wider environmental law reform 

The Issues Paper is just one of the latest developments in the Federal Government's current and continuing reforms in the environment and climate space.  Consultation on the Issues Paper is taking place at the same time as consultation on the Federal Government's proposed substantial Nature Positive Reforms package. See our articles on the proposed Nature Positive Reforms linked below for more detail.

What the Issues Paper covers 

The Issues Paper explains that the Plan is intended to be the blueprint for adapting to nationally significant, physical climate risks faced by Australia, including in Australia's Exclusive Economic Zone and external territories.  

It is expected that once finalised, the Plan will supersede the National Climate Resilience and Adaptation Strategy 2021-25.

The Issues Paper sets out the foundations for the Plan and then takes a closer look at the risks and actions identified in the first pass of the Risk Assessment.  

The vision and key objectives of the Plan are to: 

• 'mainstream' adaptation action;
• incentivise private sector investment; and
• establish support for vulnerable people and communities. 

What priority risks will be addressed?

The Issues Paper indicates that one of the ways the Plan is expected to achieve its objectives is by responding to the issues identified by the Risk Assessment.

The Plan and the Risk Assessment will form part of the Australian Government's broader National Climate Adaptation and Risk Program to be better prepared for and manage increasing risks arising from climate change.  

The first pass of the Risk Assessment identified eleven priority risks which include risks to a number of ‘systems’ identified in the table below.  

How will the Plan address priority risks?

The Issues Paper sets out the requirements for adaptation action affecting each priority risk. 

The requirements include that decisions should be: 

• based on up-to-date, reliable, useable and accessible data; 
• informed by First Nations people and embed First Nations' perspectives, priorities and experiences; and
• based on a highly consultative approach. 

The Issues Paper examines climate risk and adaptation across eight of the 11 priority risk systems.  

How would the Plan be made? 

The details of who will have the power to make, vary and revoke the Plan have not yet been determined. 

However, the Issues Paper indicates that the responsibilities for climate adaptation will continue to be guided by the 2012 agreement made by the then Council of Australian Governments' which agreed the Roles and Responsibilities for Climate Change Adaptation. 

The Climate Change Authority, in its 2023 Annual Progress Report recommended that the Plan should be legislated with updates at least every 5 years and that legislation also cover the ongoing monitoring and evaluation of the Plan.  Notwithstanding this, the Issues Paper includes questions to prompt input on the time horizon of the Plan.

What the Plan will not do

The Issues Paper indicates that Plan will not replace or duplicate the adaptation plans of other levels of government, sectors or systems. 

Climate risk should be factored into risk management

The National Adaptation Plan is a timely reminder that significant climate-related risks must be addressed in risk management, business continuity and operational resilience plans.

This is particularly important for sectors under greater public or regulatory scrutiny – and most importantly in sectors with mandated risk management or operational resilience obligations, such as critical infrastructure sectors.  

Businesses need to understand how significant climate risks can impact internal operations, supply chains and customers. 

We can expect increasing scrutiny of industry response to natural disasters – particularly where events impact large numbers of consumers.  Industry risk management and response has been examined, for example, as part of the 2020 Bushfires Royal Commission, and the current Parliament inquiry into insurers’ responses to 2022 major floods claims (due to report 30 September 2024). 

Next steps?

Businesses should consider the Issues Paper and whether they should participate in consultation either directly or through a relevant industry body. 
Submissions can be made via DCCEEW's consultation hub until 11 April 2024.

Authors: Michael Voros, Counsel; Kaila Dempsey, Lawyer; Alysha McCuish, Lawyer.