Climate change, particularly its impact on future generations, needs further study, the nation’s actuaries have warned.

The Institute of Actuaries of Australia says the lack of reference to climate change in the intergenerational report issued this week by Federal Treasurer Peter Costello is “disappointing”, and should have considered environmental intergenerational equity in more detail.

The costs of climate change were mentioned briefly in the first intergenerational report, which recommended early action to prevent a future cost blowout.

Institute President Fred Rowley has called on the Federal Government to use detailed economic modelling to establish how much climate change will cost Australia.

“The economic impact of climate change is likely to be a major force influencing intergenerational equity for a long time into the future,” he said. “Present generations have enjoyed higher living standards without realising the long-term consequences of climate change.

“Now that we understand the extent of the problem, we should start funding the research and modelling the transitions required to reduce the impact on future generations.

“Population ageing and the economic impact of climate change are the two key issues that will affect intergenerational equity in our lifetimes,” he said.  “Government, the business community and academia all need to contribute to the management of these issues over the decades ahead, but we must start now.”