FOR IMMEDIATE RELEASE
TUESDAY 25 MARCH 2025
Federal Budget: Climate-fuelled disasters already cost us $13.5 billion
Australians are footing a $13.5 billion bill for worsening extreme weather fuelled by climate pollution, which underscores why we should be spending more on permanent solutions that better protect Australians, the Climate Council said in response to this evening’s Federal Budget.
Climate Council CEO, Amanda McKenzie, said: “Australians are concerned about both the rising costs of living and escalating costs of unnatural disasters driven by climate pollution from coal, oil and gas.
The massive hit to the budget from recent Tropical Cyclone Alfred – supercharged by dangerous climate pollution – is expected to cost taxpayers about $1.2 billion. This shows the on-going terrible cost to Australians from unnatural disasters. It is more important than ever to invest in solutions that slash climate pollution and make Australians safer.
“The good news is that measures like investing in access to rooftop solar backed up by batteries – that cut climate pollution – also provide Aussies with cheaper, reliable power for years to come. It’s far less expensive than constantly cleaning up the mess of worsening disasters.”
The 2025-26 Federal Budget confirms funding for climate solution commitments already made by the Albanese Government, including:
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$3 billion in funding for investment in green iron and aluminium
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$2 billion for the Clean Energy Finance Corporation to invest in renewable power and storage, energy efficiency, and other low emissions technology
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$3 billion for rail projects in Western Sydney and Melbourne
While $1.8 billion of further electricity bill rebates will provide temporary relief for households, the Climate Council is calling for the government to make commitments that permanently bust power bills and slash climate pollution, like rooftop solar, household batteries, electrification, and energy efficiency.
“Renewable energy is the fastest way to cut power bills, replace retiring coal, and secure a safer future for our kids and communities. Already, renewable power makes up around 40% of our main national grid and we must maintain this momentum to future-proof our grid, help lower energy bills, and cut climate pollution.
“The next government will take us through the most critical years of our generation. 2025 is the midway point of the critical decade for climate action. There’s no time to waste saying goodbye to polluting coal, oil, and gas. Everything we do now with the solutions already at our disposal matters.”
Climate Councillor and economist, Nicki Hutley, said: “These confirmed funding commitments for initiatives, like green metals, are welcome. From here, there are abundant opportunities for the Federal Government to grow Australia’s clean economy for generations to come through win-win solutions for our economy and climate.
“While energy rebates offer reprieve from power price pain today, it’s only short-term relief. Australians deserve long-term solutions that help permanently lower energy bills and climate pollution. We don’t have to choose between cost of living relief and climate action – we can and must address both together.
“Smart investments where the best gains can be made – particularly energy efficiency and growing our renewable energy capacity – can help protect Australians from climate and financial shocks. This ensures we can make progress, easing cost of living pressures and setting our next generations up for a more secure future.”
ENDS
For interviews please contact the Climate Council media team on 0485 863 063, [email protected]
About us:
The Climate Council is Australia’s leading community-funded climate change communications organisation. We provide authoritative, expert and evidence-based advice on climate change to journalists, policymakers, and the wider Australian community. For further information, go to: climatecouncil.org.au or follow us on Facebook, Instagram, X, and LinkedIn.