Natural Capital Economics was engaged by the Eastern Alliance for Greenhouse Action to quantify the impact of climate change on council assets across greater Melbourne. This work will assist councils to better understand climate-related physical risks that affect council assets and their likely economic impact. To do this, NCE developed a base case (‘do nothing differently’ scenario) and estimated future costs to councils as climate-related risks increased over time. This provided the client with critical information to evaluate future investment in adaptation.
The base case results highlight that damages from climate hazards to community assets in Greater Melbourne will increase significantly with climate change, as hazards become more frequent and as more assets become exposed. Estimates of the value of damages are presented across a range of possible outcomes, with the outcomes dependent on the likelihood of hazards and the sensitivity and value of assets.