Australia Urged to Expand Climate Adaptation Taxonomy

Published on: November 25, 2025•2 min read

by KnowESG

Adaptation funding gains momentum in Australia.

Highlights

Actuaries Institute pushes for an expanded Australian Sustainable Finance Taxonomy covering adaptation and resilience.
Rising climate risks and disaster costs push governments, insurers, and households toward new investment pathways.

The Actuaries Institute has released its Mobilising Investment For Climate Adaptation report at a moment when attention in Australia is moving from the motivation for resilience to the question of financing it.

The publication examines how physical climate risks such as heatwaves, floods, bushfires, and storms are rising in scale, and it places the need for adaptation within an economic context.

With natural disasters already costing $38 billion each year, and projections reaching $73 billion by 2060, the Institute points to the growing pressure placed on households, governments, and insurers.

Read More: World’s First Tool to Compare Green Finance Taxonomies Debuts

According to the report, the absence of new investment pathways means much of the burden continues to fall on those same groups.

The Institute directs attention to a central step that can shift this pattern: expanding the Australian Sustainable Finance Taxonomy so it includes adaptation and resilience.

Once these developments are viewed in combination, a consistent direction emerges: Australia needs frameworks that can attract investment into resilience-linked projects.

Also Read: UK Govt Says UK Taxonomy Is Ineffective for Green Transition

The Actuaries Institute says that adaptation is not just a technical field, as its economic relevance grows each year due to the rising volume of losses avoided through resilient buildings, upgraded infrastructure, and quicker community recovery.

***

Are you looking for expert guidance on sustainability for your business?

Explore our ESG Solutions page, where you can connect with more than 1000 providers offering a broad range of sustainable services.

Stay up-to-date with regulatory developments through our Climate & Environment News.