To the Treasurer: the last 11 years have been the hottest on record globally. The rising cost of climate fuel disasters around the world is resulting in higher insurance premiums, food prices and rebuilding expenses, all adding to inflation and hurting Australians and businesses. Dr Timothy Neal from UNSW has assessed climate related inflation to nearly 18 per cent of GDP in New South Wales alone. Has Treasury assessed the extent to which climate change is contributing to inflation and productivity drag nationally, and, if not, will you commit Treasury to do so?

I thank the honourable member for the question and for her interest. I acknowledge, as well, the interest from a number of colleagues about the interaction of these really important questions—the future of our economy, climate change, renewable energy, resilience more broadly in the face of more frequent and more devastating natural disasters. This is a really key focus of the government, whether it's the Intergenerational report, the climate modelling, the risk assessment released by my colleagues—this is a really central concern for a whole number of members of the cabinet.

When it comes to the economic impacts of climate change, more-frequent natural disasters and also the opportunities of the energy transformation, the IGR and the climate modelling make it clear that the most important thing we can do is manage an orderly energy transition, and that's what we are doing. When it comes to investment in energy resilience—whether it's the Cleaner Fuels Program I referenced in response to the question from the member for Kennedy, whether it's Cheaper Home Batteries or whether it's other elements of our energy transition and energy resilience plan—we see all this as crucial to limiting the impacts, whether they be environmental or economic. We know that if we get this transition right—if we have an orderly path to net zero by 2050—our economy will be $2.2 trillion bigger, real GDP per capita will be $36,000 higher, there will be more than five million more jobs, and investment in the economy will be around 80 per cent higher than it is today.

So I acknowledge the honourable member's question about what further steps we might consider. We've been very careful and very persistent in putting forward all the iterative steps when it comes to climate resilience and energy resilience. As the member intimates in her question, this is now more important than ever. We have seen the very serious pressure on supply chains. We have seen the pressure on prices. We saw yesterday in the inflation figures some of the impacts of that as well. So this is an area where so many of our economic challenges and opportunities come together. It is a big opportunity for Australia to get it right. But the risks to our resilience are everywhere. We will continue to work with the honourable member and with all members of this parliament and the other side who believe, as we do, that this is one of the most important challenges that we have—but full of opportunities as well—and we expect to do the right thing.