The Federal Government has not done enough to understand and act on the economic costs and responses to climate change in its 2007 Budget, actuaries have warned.

The Institute of Actuaries of Australia says the announcement by Treasurer Peter Costello of a climate change research centre within CSIRO is “a forward step”. However, the actuaries say more work is needed on the economic effects and potential responses to climate change, including an emissions trading scheme.

The Government has pledged $126 million for the creation of a national research centre, and $197 million will be spent protecting forests overseas. Homeowners are being enticed to save energy with $8000 rebates on solar heating systems.

Institute President Fred Rowley says the Australian Centre for Climate Change Adaptation should increase scientific modelling capacity and the understanding of climate-change effects.

“Another essential part of Australia’s response to climate change is the need for economic modelling,” he said.