Australia’s councils are stepping up as frontline defenders against climate change, investing billions nationally to protect their communities from rising risks.
A new report from the Australian Local Government Association (ALGA) reveals that local governments will spend more than $2 billion by 2030 on adaptation measures.
Interventions ranging from flood management and coastal protection, to bushfire education and urban cooling should deliver up to $4.7 billion in avoided costs and community benefits.
“This ground-breaking research shows councils are leading the way in preparing for and managing these ever-increasing impacts, including from natural disasters,” ALGA President Mayor Matt Burnett said at the National General Assembly in Canberra.
“The climate of every community is different, and it’s impressive to see innovative examples and strong leadership by councils across Australia to reduce climate risks and future-proof their communities.”
The Adapting Together: Local Government Leadership in a Changing Climate report, prepared with Nation Partners and Ricardo, is the first national attempt to quantify the economic and social value of local government climate action.
Drawing on 219 examples and five detailed case studies, the report models how local projects – from Darwin’s tree planting program to Hobart’s bushfire resilience initiative – are helping communities prepare for a hotter, riskier future.
According to the report, even under the most optimistic scenarios for global emissions reduction, Australia’s towns and cities will face escalating threats.
Without adaptation, disaster-related costs could soar to $73 billion by 2060.
Local governments, already under strain maintaining core infrastructure, are carrying an “inequitable delivery burden” as service providers of last resort.
Lord Mayor of Hobart Anna Reynolds said the Federal Government must do more than acknowledge local leadership.
“The Federal Government rightly recognises the best climate solutions come from those closest to the risks but there’s a huge gap between recognising this principle and providing the funding needed to deliver it to local communities,” she said.
ALGA is calling for a new $400 million annual Climate Adaptation Fund to be distributed across all councils.
“Climate-resilient infrastructure is expensive and takes time to build, so we need sustainable funding from the Federal Government to implement long-term planning and adaptation now and into the future,” Burnett said.
Case studies from the report highlight how adaptation looks different across regions:
In the City of Darwin, the 2030 Greening Darwin Strategy is planting cyclone-resistant, climate-suitable trees along transport routes and in suburbs with low canopy cover to combat heat and storm risks
Lockyer Valley Regional Council, devastated by repeated floods, has implemented voluntary buy-backs in high-risk zones and relocated entire communities, ensuring long-term safety
The City of Hobart has worked with households through its ‘Sparking Conversations, Igniting Action’ program, boosting bushfire preparedness by encouraging vegetation management, household planning and stronger community ties
Moyne Shire Council has restricted new development in Port Fairy’s flood-prone coastal zones, proactively addressing sea level rise and storm surges
The City of Onkaparinga has embedded climate risk into its governance through a dedicated response plan, mapping physical and transition risks across assets, services and operations
Each of these initiatives is paying dividends. Cost-benefit analysis in the report shows council-led projects return between $0.80 and $3.10 for every dollar spent.
While some benefits – such as improved mental health or employment – are difficult to quantify, the evidence suggests councils’ efforts provide significant national value.
Mayor Tanya Milligan of Lockyer Valley said the stakes are clear.
“Adapting to climate challenges is critical for local government, and it’s vital that other levels of government consider and invest in the recommendations of this new report, to ensure communities at risk have a safer and brighter future.”
The report also underscores that adaptation means more than just building sea walls or planting trees. Councils are reshaping how they plan and govern.
Nearly half of the projects analysed were internal governance measures such as climate risk assessments, adaptation strategies and integrating climate projections into asset management.
Others focus on education, behaviour change, and partnerships with Traditional Owners to embed cultural knowledge in resilience planning.
First Nations collaborations are highlighted as critical. In Wiluna, Western Australia, the Shire worked with the Tarlka Matuwa Piarku Aboriginal Corporation to create a Martu Bush Walk, restoring native vegetation while supporting cultural practice and community health.
A urgent focus
The scale of council responsibility is immense.
Local governments deliver and manage more than one-third of Australia’s public infrastructure, from roads and drains to parks and community centres.
They are on the frontline of health and social support – running immunisation programs, maternal and child health, aged care, and neighbourhood centres – all services increasingly stressed by climate-driven emergencies.
Yet funding shortfalls persist.
The Grattan Institute estimates councils already need an extra $1 billion annually just to maintain local roads. Without consistent federal investment, councils’ ability to adapt will be “increasingly constrained and unable to adapt effectively”.
For communities, these investments are not abstract – they are lifelines.
Councils are proving that adaptation is both achievable and economically sound. The challenge, as the report makes clear, is sustaining this momentum nationally.
