Australia’s Youth Agenda: A little less conversation, a little more climate action

26 March 2026: Climate change could deal a $165,000 blow to the lifetime incomes of young Australians unless three urgent outcomes are delivered to realise a new, green growth model, a report released today warns.

Developed by a team of young economists from Deloitte Access Economics, Australia’s Youth Agenda: A little less conversation, a little more climate action is the third report in the Youth Agenda series, which highlights the mounting economic and social challenges facing younger Australians and makes the case for embedding a youth lens in policymaking.

The report contains an analysis of two climate scenarios using Deloitte’s in-house integrated assessment model, D.Climate. The modelling finds that although climate change will adversely impact the prosperity of all Australians, younger people are disproportionately impacted.

For the average Millennial and Gen Z Australian, warming consistent with the current temperature trajectory is estimated to create a cost of approximately $130,000 and $165,000 respectively over their lifetime. For Generation Alpha, these costs increase to $185,000 per person.

Alternatively, if today’s decision-makers can drive the climate action needed to reach net zero emissions then Australian Millennials, Gen Z and Gen Alpha avoid costs of approximately $50,000, $70,000 and $80,000 over the course of their lifetimes.

Deloitte Access Economics Associate Director Rhiannon Yetsenga said: “Among the suite of challenges facing young Australians, few are more divisive than climate change. Its effects - and the debate over the price of addressing them - have shaped public conversation in this country for as long as many young people can remember.”

“For this generation, climate change is not a distant threat but an immediate, lived experience with severe consequences. Climate change threatens worker productivity, damages infrastructure and property, increases health risks and healthcare costs, undermines tourism, and destabilises agriculture.

“These compounded impacts slow growth, inflate costs, and jeopardise future wellbeing - especially for younger generations. Previous work by Deloitte Access Economics has estimated that not acting on climate change could cost our economy $3.4 trillion by 2070.

“It is no wonder that 76% of young Australians are worried about climate change, and 67% report feeling climate anxiety. These direct encounters with climate impacts influence how young Australians view progress. Pursuing growth at any cost no longer makes sense - especially when most have felt firsthand the heavy toll of climate-related disasters.

“Today, young people are calling for a broader definition of progress, one that focuses not just on economic output but also on who benefits, how sustainable growth is, and whether it improves lives and protects the planet.”

The report outlines three urgent outcomes that need to be achieved to usher in a new sustainable growth model that minimises both global warming and its corresponding financial impact on the lifetime incomes of young people:

• Get our emissions to net zero, which will require a whole-of-economy effort for businesses and individuals to consider the costs of emissions on younger Australians when making decisions, including through measures like a broad-based carbon price. As well as being the gold standard for cost-effective decarbonisation, such a policy also opens the door for broader tax reform that could have a measurable impact on young Australians’ future prosperity.
• Future-proof our economy and grow new green and sustainable industries such as green iron and critical minerals that leverage our existing traditional strengths including resource abundance, skills, trade infrastructure and relationships. Development of these more ‘resource-productive’ industries can be encouraged by policy, but must be driven by capital – for example, the $4 trillion worth of Australian superannuation assets.
• Prepare Australians to deal with the impacts we can’t avoid, which will require greater adaptation investments by Government. Adaptation investments can cover everything from infrastructure resilience to community preparedness and financial and insurance products. But fundamentally it means investment before a climate impact that minimises the damage caused. For young people, this means improvements to education, health and employment prospects.

The evidence suggests that it pays dividends. The CSIRO cites evidence of ROIs on resilient infrastructure ranging from 3:1 to 12:1. The Insurance Council reckons a dollar spent on resilience saves $9.60 in future damages. Deloitte’s research suggests Australia can avoid $120 billion in economic costs from climate change by 2050 with appropriate investment in adaptation.

Yetsenga continued: “A growth model cannot be sustainable if it is not emissions-reducing. While Australia’s emissions are falling, Australia seems unlikely to reach its net zero by 2050 target under current policies alone.

“Reaching net zero by 2050 requires a whole-of-economy effort, with individuals and businesses needing to consider the costs of emissions on young people in making decisions – in essence, giving them a seat at the decision-makers’ table.

“Through this, Australia can be a leader on climate action, and in doing so, encourage global decarbonisation while moving to the forefront of new, green industries ahead of the laggards.

“This global transition will drive stronger economic growth post 2050 – relative to a world with higher global temperatures – and lessen the long-term costs of climate change for young Australians. The urgency of the task cannot be overstated. The chance to shape the world after 2050 remains up for grabs.”

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