Estimate of environmental expenditure 2024/25: Method and results
Gordon Haws, Flickr
The latest estimate of environmental expenditure from the PCE shows that $3.55 billion has been budgeted by central government agencies for the 2024/25 fiscal year.
While the overall spend is similar to the previous fiscal year, spending on adapting to the effects of climate change has significantly increased (by $666 million), while expenditure in other areas has decreased.
The Sankey diagram (click to enlarge) shows environmental expenditure budgeted for 2024/25 by government agencies, attributed to enduring environmental outcomes. The top of the figure provides a sense of the total environmental spend, the bottom shows where that spending is focused and the flows capture the contributions of individual agencies.
The Commissioner warns that as climate change exacerbates the magnitude and frequency of extreme events, we can expect greater spending on adaptation.
“Whether we are talking about extreme weather, degraded water or other pollution, the environment is starting to send us invoices for damage that is only likely to increase. This poses a significant risk to the Crown. There is an urgent need to get a better handle on what the future holds.”
The estimate breaks down the spending of 22 central government agencies against six enduring environmental outcomes. It is intended to provide members of parliament with information to help them scrutinise public spending on the environment.