Climate threat puts $40 billion worth of Victoria infrastructure at risk: Report

More than 57 billion Australian dollars (around $40.84 billion) worth of infrastructure in the Australian state of Victoria is vulnerable to climate-related extreme weather events, according to a new report released on Tuesday by Infrastructure Victoria.

The independent infrastructure advisory body warned that the value of infrastructure exposed to climate risks could rise by nearly 25 per cent over the next four decades as bushfires, floods and extreme heat intensify across the state.

The report assessed infrastructure assets worth approximately 318 billion Australian dollars and identified bushfires, flooding and prolonged heatwaves as the biggest long-term threats to Victoria’s transport, energy and public service networks.

According to the findings, infrastructure currently exposed to bushfire risk is valued at more than 23 billion Australian dollars, with that figure projected to exceed 30 billion Australian dollars by 2070.

Flooding already threatens assets worth over 22 billion Australian dollars, while infrastructure vulnerable to extreme heat is expected to more than double between 2030 and 2070.

Road and rail systems are likely to suffer the highest damage costs, particularly in Melbourne and major regional transport corridors. The report also warned that energy infrastructure and healthcare facilities face growing risks from floods, bushfires and heatwaves.

Infrastructure Victoria noted that extreme weather has already imposed a heavy financial burden on the state. Climate-related disasters cost Victoria an average of 2.7 billion Australian dollars annually in the decade leading up to 2016, while the devastating 2022 floods alone forced governments to spend about 3.5 billion Australian dollars on relief and recovery measures.

The report comes amid growing evidence of climate change impacts across Australia. According to the Australian Broadcasting Corporation, average temperatures in Victoria have risen by 1.2 degrees Celsius since 1910, contributing to more frequent and severe extreme weather events.

Infrastructure Victoria said targeted adaptation measures could significantly reduce future economic losses. Recommended strategies include improving drainage systems, using climate-resilient materials in road construction and strengthening infrastructure planning to withstand future climate shocks.

The report emphasised that early investment in resilience could deliver substantial long-term economic benefits, noting that every dollar spent on climate adaptation has the potential to save multiple dollars in future repair and recovery costs.

Australia’s climate varies widely across the continent, ranging from tropical conditions in the north to temperate climates in the south. Nearly 70 per cent of the country is classified as arid or semi-arid desert, making many regions increasingly vulnerable to the impacts of rising temperatures and extreme weather patterns.

With IANS inputs