New study uncovers hidden force behind rising cost of living: 'Feeling the financial strain more severely'
Climate change is directly affecting the cost-of-living crisis, and average people often pay the price for bad environmental decisions made by corporations.
A new report from The Australia Institute revealed that the climate crisis is responsible for driving up costs for Australians, particularly in the areas of insurance, food, and energy.
"Insurance premiums have soared due to an increase in natural disasters, with some households now spending over seven weeks of gross income just to cover home insurance," the institute said.
Food prices are up by 20% since 2020 thanks in part to climate-related events disrupting harvests and growth periods. Energy prices are high because of a continued reliance on fossil fuels and an underinvestment in renewable energy sources.
Rising global temperatures are causing extreme weather around the world, including wildfires, floods, hurricanes, tornados, and heat waves. These natural disasters can have lasting effects on people who don't have significant savings or adequate insurance coverage.
"The impacts of the climate crisis are disproportionately affecting lower-income and regional households, who are already feeling the financial strain more severely," the institute said.
Australia is the world's second-largest fossil fuel exporter and fifth-largest producer. More frequent and severe natural disasters have led to higher payouts from insurance companies and rising premiums for homeowners.
"The only way to keep insurance costs down is to keep fossil fuel emissions down. The more we heat the climate, the more expensive storms, floods and fires will be and, in turn, the more insurance will cost. It's time we started to tax the fossil fuel companies to fund the damage that their previous emissions are already causing," said Richard Dennis, executive director of The Australia Institute.
Extreme weather events have always existed, but the scientific consensus is that human-induced climate change supercharges these events, making them more powerful and dangerous to our communities.
Addressing climate change and investing in renewable energy sources is expensive, but not doing so will be far costlier. Everyone can do their part by living a more sustainable life.
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Try walking, biking, or taking public transportation when you can. Install solar panels to slash your carbon footprint and energy bills. Replace your biggest-ticket items with more energy-efficient alternatives, such as a heat pump or electric vehicle.
For more tips on how to be a part of the solution, check out our guide on exploring critical climate issues.
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