Can you afford climate change?

Published: May 26, 2008 - 11:33 AM

Compare rich vs poor

We are being bombarded every day with messages about the environment and the impact that climate change is having on our weather patterns, river systems and sea levels. Climate change is real and it’s here to stay. Its impact on the hip pocket is already being felt by Australians every day when they go to the grocery store or to buy petrol and costs have hit a new high again.

As we try to adapt to the reality of rising prices for essential goods, we’ll soon be adding another price rise to the list. Australians currently take advantage of some of the cheapest power prices in the world. But our honeymoon with cheap energy prices is just about over with prices to increase significantly over the next 3 to 5 years. We have been spoilt by our abundance of coal and natural gas. But our energy prices will soon be hit by the twin impacts of the rising cost of getting resources out of the ground and the cost of carbon emissions as governments seek to incentivise companies to limit their carbon footprint. Both these costs will be passed on to the consumer.

So what can Australian householders, who are already struggling to make ends meet, do to limit the impact of climate change on their household budgets?

Firstly, try and make your house as energy efficient as possible. If you don’t have insulation in your roof – put it in! Make sure your windows are all properly sealed so you can keep the heat out in summer and the cold out in winter.

Secondly, install energy efficient appliances wherever possible. The older your appliances are the least likely they are to be more energy efficient. Put in energy efficient light bulbs. If you’ve been thinking about replacing that 20 year old fridge go and do it – and get an energy efficient model. Fridges use a huge amount of power and the more modern your fridge is the less power it will use.

Thirdly, if you can afford it, use the natural environment to meet some of your energy needs. Install solar panels on your roof and a rain water tank. Go all out and get a grey water recycling system installed.

Fourthly, (and this one doesn’t cost anything) turn your appliances off standby. When you go to bed at night or away on holidays turn the TV, the toaster, the kettle, the computer and printer off at the power point so they are not leaking power into that little standby light. It will make a difference.

Whilst all these suggestions are great ways to minimise your carbon footprint and can at least make a contribution towards you controlling your energy costs, the initiatives do cost money themselves. An April 2008 report “Energy & Equity”, produced jointly by ACOSS, the Australian Conservation Foundation and Choice, concluded that climate change will most adversely affect those on lower incomes and people living in vulnerable communities who are least able to change their living circumstances. Low income earners spend a greater proportion of their household budget on energy and water (almost twice as much as wealthier households) and are least likely to be able to afford to introduce the energy efficiency initiatives outlined above. Low income earners are also more likely to be in rented accommodation where they may have little or no control over the energy efficiency of their dwelling, yet they are responsible for covering the costs of energy consumed.

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