By Abbas Nazil
A new report has warned that younger generations in Australia could face significant lifetime financial losses due to the worsening climate crisis if urgent action is not taken.
The analysis by Deloitte estimates that Generation Alpha could lose up to $185,000 each by 2070 under current global warming trends, while millennials and Generation Z could face losses of about $130,000 and $165,000 respectively.
The report highlights that these projected costs stem from reduced productivity, damage to infrastructure and property, increased healthcare expenses, and disruptions to key sectors such as agriculture and tourism caused by extreme weather events.
According to the study, global heating consistent with current projections will significantly undermine economic stability and future wellbeing, particularly for younger generations who will bear the long-term consequences.
Economist Rhiannon Yetsenga explained that climate change is no longer a distant concern but an immediate reality shaping the lives and economic prospects of young people.
She emphasised that the issue represents a growing intergenerational inequality, where younger populations are expected to carry a heavier financial burden compared to older generations.
The report further indicates that Generation Alpha could experience economic losses nearly ten times greater than those faced by baby boomers, reflecting how delayed climate action amplifies long-term costs.
Researchers modelled two scenarios, one where current policies continue and another where stronger action achieves net zero emissions by mid-century.
Under the more ambitious scenario, younger generations could avoid substantial losses, saving approximately $50,000 for millennials, $70,000 for Generation Z, and $80,000 for Generation Alpha over their lifetimes.
The findings suggest that many of the projected costs are already partly unavoidable because greenhouse gas emissions remain in the atmosphere for decades, locking in some level of future impact.
The report also points to growing frustration among young people, who increasingly feel that governments are not taking sufficient action on critical issues such as climate change and housing.
Experts argue that implementing measures like carbon pricing and expanding emissions reduction policies could help mitigate future losses and support a transition to a more sustainable economy.
They also stress the importance of rethinking economic growth models to ensure that development is environmentally sustainable and does not exacerbate climate risks.
Despite the challenges, the report notes that climate action could present economic opportunities if investments are directed toward green industries such as renewable energy, critical minerals, and sustainable manufacturing.
Former Treasury official Ken Henry described the findings as evidence of a shifting intergenerational burden, warning that continued inaction could pose serious long-term risks to economic stability and human wellbeing.
The report underscores that without decisive intervention, climate change will increasingly shape economic outcomes, placing a disproportionate burden on future generations while highlighting the urgent need for coordinated global action.
