The Guardian
· collected 2026-09-22 · by Donna Lu Assistant editor, climate, environment and science
Australian experts criticize the government’s seventh intergenerational report for downplaying the severe economic impacts of climate change by 2066. The report acknowledges potential sea level rise, reduced worker productivity due to heat, and damage to agriculture and tourism but dismisses the certainty of these effects as “highly uncertain.” Treasury modelling cited in the report suggests a disorderly transition to net zero could cost $2 trillion by 2050, yet experts argue this figure underestimates true economic impacts.
Written locally by qwen2.5:14b on 2026-09-22,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
Treasurer Jim Chalmers is set to release Australia's seventh Intergenerational Report (IGR) on Monday, forecasting that by 2066, Australia’s population will reach nearly 40 million people with longer life expectancies but lower fertility rates. The IGR outlines significant economic challenges due to an aging population and declining birthrates, emphasizing the critical role of migration in maintaining workforce growth.
Chalmers has hinted at potential further tax cuts for workers as part of his plan to address these long-term issues, suggesting that recent budget improvements have created room for additional relief. However, critics argue that while borrowing less than previously expected is positive, it does not equate to having surplus funds available for such measures without sustainable funding from spending restraint or alternative revenue sources.
The report also highlights the need for policy decisions today to prepare future generations for technological advancements like AI and to address geopolitical uncertainties in a more fragmented world. Prime Minister Anthony Albanese has been pushing for global cooperation on AI regulation during his visit to the United States, where he announced Siobhan McKenna as Australia's next Consul-General in New York, despite concerns about her past ties with News Corp. The announcements come amid efforts by the Australian government to secure a two-year term on the UN Security Council.
Written for “Australia's Economic Future Challenges” on 2026-10-04,
grounded in this article and the 18 other(s) covering the same event.
An Australian government snapshot of life in 40 years has been sharply criticised for underplaying the economic and social damage expected due to the worsening climate crisis.
asserted
snapshot → criticise → crisis
The government’s seventh intergenerational report, which projects out to 2066, finds the effects of global heating four decades from now are “highly uncertain”, pointing to the pace of the global energy transition as a key source of unpredictability.
asserted
effects → project → unpredictability
The report finds sea level rise from global heating will have the greatest effects on coastal and low-lying areas, while hotter temperatures could reduce productivity of workers, affect agricultural crop yields and damage tourism.
uncertain
temperatures → find → tourism
“Over the next 40 years, increasingly frequent and severe natural disasters will pose a significant economic risk,” it finds.
asserted
it → pose → risk
The deputy director of Melbourne Climate Futures at the University of Melbourne, Assoc Prof Ben Neville, said that while the report “connects demographic trends with threats on the horizon, it is negligent in ignoring the economic damage that the changing climate already is and will increasingly bring in the next 40 years”.
asserted
climate → say → years
The report mentions treasury modelling which finds that a disorderly approach to the net zero transition result in a cumulative $2tn hit to the economy by 2050.
asserted
approach → mention → 2050
“As the geopolitics show, we are clearly on this disorderly pathway,” Neville said, adding that – as highlighted by the national climate risk assessment – current modelling methods significantly underestimate economic impacts “as they don’t incorporate the recognised complex impacts of climate change”.
asserted
they → show → change
“Not integrating this perspective when forecasting the next 40 years is a very disappointing miss, illustrating a government that just doesn’t seem to get it on climate change, all while it co-leads the world towards the next global Cop negotiations in Turkey.”
asserted
it → integrate → Turkey
Sarah Wheeler, a professor of water economics at Flinders University said that the issue of water scarcity was overlooked in the report.
asserted
issue → say → report
“One of the largest impacts [of climate change] will be on water security issues, with higher water variability meaning increased probability of more damaging flooding and severe droughts,” she said.
asserted
she → mean → flooding
“Without urgent action to address and manage these issues, the ramifications on Australian productivity and wellbeing will be huge.”
asserted
ramifications → address → productivity
Climate activist Anjali Sharma questioned the report’s utility.
asserted
Sharma → question → utility
“Young people won’t be looking at this report to know their future.
asserted
people → look → future
What use is a report forecasting the next forty years by a government failing to tackle the greatest challenge of our time?”
asserted
report → forecast → time
However, the report does highlight the benefits of embracing renewable energy.
asserted
report → highlight → energy
Prof Frank Jotzo, director of the Centre for Climate and Energy Policy at the Australian National University, said it “correctly points out the many economic advantages that Australia will reap from the transition to renewable energy, and from future clean energy-based export industries”.
asserted
Australia → say → industries
“The national vision of renewable energy based exports of green iron, green ammonia and carbon-neutral fuels is alive, despite some disappointment of early excitement not yet having translated into large investments.”
asserted
vision → base → investments
The executive director of policy for the Investor Group on Climate Change, Francesca Muskovic, said: “The government needs a laser focus on making sure datacentres’ growing electricity demand is aligned to and supports investment and rollout of new, firmed renewable energy.
asserted
demand → say → energy
“Runaway demand without securing a strong pipeline of additional, new clean energy supply will put immediate, acute pressure on the existing grid and could lead to increased energy prices for Australian households and businesses.”
uncertain
demand → secure → households
The Aporia
