Gen Z Faces $185k Climate Bill

Younger generations in Australia are projected to bear significant financial burdens due to the climate crisis. Modelling by Deloitte economists estimates that a continuation of current global warming trends could cost millennials approximately $130,000 and Gen Z $165,000 over their lifetimes. Generation Alpha, with the eldest turning 16 this year, could face costs as high as $185,000 by 2070.

The projected economic damage stems from reduced worker productivity, infrastructure and property risks, increased health issues, and a destabilized agriculture and tourism sectors. These impacts are already partly locked in due to persistent emissions.

Conversely, the modelling suggests that achieving net-zero emissions by mid-century could allow millennials, Gen Z, and Gen Alpha to avoid costs of around $50,000, $70,000, and $80,000 respectively. This highlights that addressing climate change is a matter of intergenerational equity.

Economists advocate for a price on carbon and expanding the safeguard mechanism as effective measures. They stress that sustainable growth must be emissions-reducing, promoting new green industries. Australia has the potential to leverage its resources for a green future, turning climate action into an economic opportunity.