Polluter-paid climate damages up for council vote
Local governments, fed up with floods, storms and other climate extremes draining municipal budgets, are seeking fossil fuel-backed compensation.
More than 500 councils are set to vote on a City of Sydney-led motion to create a fund to address the damage caused by climate change, backed by levies or taxes on oil, coal and gas companies that are major contributors to greenhouse gas emissions.
Municipalities face increasing costs to repair and maintain roads, drainage, parks and coastal defense systems due to global temperature increases that have far outpaced revenue growth.
Local governments supporting the proposal argue that a dedicated funding stream for recovery and resilience would ease reliance on taxpayer increases.
Sunshine Coast Council, a low-lying coastal region particularly vulnerable to flooding and erosion, allocated $1.7 million for disaster management and resilience in its last budget, a 9.7 per cent increase.
Sunshine Coast councilor David Law said the local government supported a compensation fund as a fair and practical solution to climate damage bills.
“By requiring major coal and gas companies to contribute to the costs of climate damage, it will ensure councils have access to a dedicated funding stream for recovery and resilience, reducing the need for ongoing rate rises,” Cr Law said.
Councils are responsible for maintaining nearly half a trillion dollars worth of infrastructure, including 75 per cent of the country’s roads.
Insured losses from natural disasters (a useful but imperfect measure of the cost of damage) are 12 times higher than they were two decades ago, compared with government revenues that have tripled over the same period. Australian Institute.
Supporters say councils receive some financial support from state and federal governments after disasters, but that aid falls well short of what is needed to sustainably manage climate costs.
City of Sydney Deputy Mayor Jess Miller said the federal government national adaptation planThis legislation, published in 2025, created a mandate for councils to manage resilience in addition to the frontline responses already provided.
“But the government has failed to provide the funds necessary to provide these critical services,” he said.
Councils are scheduled to vote on the motion at the Local Government Association of Australia national general meeting on Wednesday.
Prime Minister Anthony Albanese will address a local government meeting on Thursday.
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