2021-08-10 P&E Agenda - Item 7 - Attachment 1 - Climate Change Response Plan

                                                               Noosa Climate Change Response Plan




Extreme events                                         An example of a transition risk is a levy on
                                                       carbon emissions. The introduction of a carbon
A warmer world is likely to result in an               levy would increase the cost of doing business
increase in the severity of extreme wind and           for organisations responsible for carbon
storm events. Based on currently available             emissions, such as a local government that
information, the frequency of tropical cyclones        owns a landfill or an airline whose planes rely
forming and impacting the Queensland coast             on fossil fuels. Increases in business costs are
is expected to decrease. However, a warmer             often passed on to customers and consumers,
atmosphere and seas is likely to result in an          thereby potentially affecting the Noosa
increase in the average severity of tropical           community through the household budget.
cyclones, as well as a southward expansion
                                                       Another example is a reduction in the expected
in their normal range. Whilst there does not
                                                       return on investment for assets and activities
appear to be any change in their frequency yet,
                                                       that do not align with a clean economy,
climate change projections indicate an overall
                                                       such as a coal-fired power station. Some
decrease in East Coast Lows can be expected.
                                                       institutions have already begun to refuse to
An increase in the severity of storm and               provide financing or commercial insurance
tropical cyclone events will lead to increased         for business activities on the grounds that the
risks to people, private property, important           activities will result in an increase in carbon
infrastructure, and the local environment of           emissions. The lack of finance or insurance can
Noosa associated with more intense and                 create what is known as a ‘stranded asset’. If
frequent flash flooding, and more frequent             investment portfolios (such as those included
severe or extreme wind events.                         in superannuation funds) are not carefully
Bushfire weather is a measure of fuel dryness          managed, the prospect of stranded assets can
and hot, dry, windy conditions. Recent bushfire        create an economic transition risk, which can
events of 2019/20 in Peregian, Cooroibah and           affect the superannuation returns for ordinary
Noosa North Shore have highlighted the ever-           people.
present risk of bushfire. The combination of           A more direct form of economic transition risk is
higher average temperatures, more frequent             the transition from internal combustion engine
and longer heatwaves, and an overall drying            (ICE) cars to electric vehicles (EV). For example,
trend is likely to result in an increase in bushfire   a buyer of an ICE car may be expecting to
risks across certain areas of Noosa Shire.             re-sell the vehicle in several years for 50% of
                                                       the purchase price. However, they may receive
Transition risks                                       significantly less than this amount if future
                                                       buyers are only interested in purchasing an EV.
Not all risks associated with a changing
climate are related to the natural or physical         The existence of transition risks should not
environment. How society responds to the               be viewed as a reason to avoid actions to
threat of climate change can lead to ‘transition       avert climate change, but rather as an added
risks’. Transition risks are the result of steps       incentive to transition to a cleaner economy
taken primarily by governments, but also               and society more rapidly; a form of first-mover
individuals and businesses, to reduce carbon           advantage. Taking such steps in Noosa, sooner
emissions. Most transition risks are the result of     rather than later, is likely to minimise pressure
either regulatory or economic change.                  on future budgets for Noosa Council, and
                                                       potentially the community as well.
                                                       .

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