Development in a state of climate change: an Australian case study of government response
| DOI | https://doi.org/10.1108/JPIF-11-2021-0090 |
| Published date | 09 February 2022 |
| Date | 09 February 2022 |
| Pages | 362-380 |
| Subject Matter | Property management & built environment,Real estate & property,Property valuation & finance |
| Author | Lucy Cradduck,Georgia Warren-Myers |
Development in a state of climate
change: an Australian case study
of government response
Lucy Cradduck
QUT Law, Brisbane, Australia, and
Georgia Warren-Myers
Faculty of Architecture, Building and Planning, The University of Melbourne,
Melbourne, Australia
Abstract
Purpose –This research seeks to understand the potential impact to investors from government responses to
climate change risk, as reflected in changes to planning processes made after significant weather events.
Design/methodology/approach –The research examines the land planning responses within a select local
government authority (“LGA”) area following four significant weather events, in order to identify any changes
made, and the impact on future development proposals.The LGA selected is the Central Coast Council, which is
a coastal LGA in the Australian State of New South Wales. The research engaged with the publicly accessible
records available on the Central Coast Council, Australian Bureau of Meteorology and other websites; and
extant literature.
Findings –The research reveals that some adjustments were made by the Central Coast Council, and or the
State government, to relevant laws, policies and processes following these events. These changes, however,
tended to focus on imposing additional requirements on future development applications, rather than on
requiring changes to current structures, or prohibiting further development works.
Research limitations/implications–The research has three limitations: (1) land law in Australia varies, as
each State and Territory, and LGA, has specific laws, policies and processes;(2) as laws and policies are subject
to change, it was necessary to select points in time at which to engage with those laws and processes; and
(3) COVID-19’s impact on domestic Australian travel [the authors could not travel interstate] meant only
documents available on the Internet were considered, however, not all documents relating to development; or
changes to laws and processes were easily accessible online. As the research focussed on one case study area,
this may limit the applicability of the results to other areas. However, as extreme events are international, the
related issues are a concern in all areas.
Practical implications –This research confirms the results of other extant research, which observed that
some risks cannot be properly mitigated, such that any development in an at-risk area remains at risk. It also
identifies that more current, accurate and publicly accessible data are required to enable investors to more
easily and accurately identify all risks affecting a property.
Originality/value –The research provides a snapshot of one LGA’s response to the physical risks arising
from climate change events. As investors and other organisations integrate and build up their analysis of
climate risks to their portfolios and organisations, governments become more aware of the long-term effects of
climate change and consistently with extant research; this research indicates that a greater awareness is
required of current risks and action to manage the short-term effects and cost challenges, in addition to the
long-term adaptation requirements.
Keywords Climate change risk, Sea level rise, Valuation, Australia, Coastal, New SouthWales
Paper type Research paper
Introduction
As one of the largest coastal states in the world, the Australian population is primarily
situated along the coastal fringe, resulting in considerable residential, commercial and
industrial development in these areas (Sheehan et al., 2018). While a water location may be
JPIF
40,4
362
The authors acknowledge the funding support provided by the QUT Law Seed Funding (2020) program;
and the research assistance provided by Anne Overell.
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1463-578X.htm
Received 1 November 2021
Revised 17 January 2022
Accepted 21 January 2022
Journal of Property Investment &
Finance
Vol. 40 No. 4, 2022
pp. 362-380
© Emerald Publishing Limited
1463-578X
DOI 10.1108/JPIF-11-2021-0090
desirable for many, the properties and businesses located in these areas are directly at risk
from the adverse impacts of climate change, most specifically risks that are due to sea level
rise, inundation from riverine flooding and land loss (Jia et al., 2019). These risks are not
unique to Australia and affect all islands, and any property located in coastal, riverine or
flood-prone areas globally. The increasing frequency, and severity, of extreme weather
events, which in some instances used to be described as merely being “a one in 100-year
event”, are increasingly occurring and are adversely impacting the amenity, and in some
instances the existence, of these properties, and correspondingly their value. The need for
proactivity, rather than reactivity, in response to such risks is clear (Clayton et al., 2021), with
the adverse impacts of failing to adequately plan highlighted by national and global tragedies
in which homes, land, and people are washed away or fall into the sea (Fellner, 2020).
Noting the increasing trend to impose legal obligations on businesses to manage for such
risks (Peel et al., 2020); as well as businesses choosing to adopt risk identification practices
(Warren-Myers and Cradduck, 2021); understanding these risks and current international
and domestic valuation practices, laws and responses to such risks, is essential (Warren-
Myers and Cradduck, 2022). While industry, government and business are all seeking to take
action to reduce carbon emissions in order to minimise future impacts (IPCC, 2014), their
reaction to ongoing development in at-risk areas lags behind as it fails to appreciate the
current and future concerns for those areas. This is seen, for example, in the fact that while
some areas in Australia are recognised as being at a particular risk due to historical events
(NSW Government, 2017), poor planning exposes those communities to increased risks from
the adverse impacts of future climate change events (Jia et al., 2019). Too often government
response does not adequately identify existing or future impacts nor does it consider the
effects of continuing to grant development approvals in such areas and the implications it has
on property, investors and the community.
While property valuers are likely to bear a level of liability to investors if they fail to
adequately consider the impact of any related physical risks in their report, separately the
question arises as to what impact the management of these climate change-specific risks
should have on government’s decision-making processes and liability (Cradduck et al., 2020).
Matters requiring explicit consideration include the need to identify the risks that cannot be
managed or ameliorated (Robb et al., 2020); how those risks should be considered in
governments’decision-making processes, particularly regarding proposed development in
at-risk areas; and what governments’responsibility should be for permitting or enabling any
development in recognised at-risk areas (Robb et al., 2017;Bell and Baker-Jones, 2014).
As was articulated almost a quarter of a century ago, “sustainable development [is that
which] meets the needs of the present without compromising the ability of future generations to
meet their own needs”(Bruntland Report, 1987, p. 54). As Clayton et al. (2021) observed
regarding commercial real estate, the risks from “[c]limate events are not new —assets have
always been exposed to extreme events sometimes. But an increase in extreme weather events is
having greater financial consequences that are being borne by insurers, owners and occupiers,
as well as governments”(Clayton et al., 2021, p. 4). Noting the increase in frequency and
intensity of those risks, sustainable development and investors must take these into account
in their planning for, and implementation of, their projects (Warren-Myers and Cradduck,
2022;United Nations, 2015).
The paper commences with a consideration of relevant literature. It then examines
responses to climate change events in one coastal hotspot, being an area where communities
are recognised at being at immediate risk from climate-related events (Sheehan et al., 2018).
Noting that each country and region faces its own unique climate change issues, and as it is
not possible to undertake a comprehensive review and comparison in an article of this scope,
the research focusses on one case study from Australia. The area selected is the central coast,
New South Wales. The authors examine the responses of planning processes in the context of
Development
in a state of
climate change
363
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