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Table 11.4: Potential Direct and Indirect Losses to Industries from Climate Change
Direct Losses
Indirect Losses
Primary Direct Losses
Primary Indirect Losses
Physical damage to buildings
Physical damage to production equipment
Physical damage to raw materials
Physical damage to product in stock
Physical damage to semi-finished products
Physical damage to control installations
Physical damage to service installations
Loss of production due to direct damages
Loss of production due to infrastructure disruptions
Loss of projection due to supply chain disruptions
Secondary Direct Losses
Secondary Indirect Losses
Hazards and damages (due to fires, explosions)
Cost of remediation and emergency measures
Cost of installing new equipment to meet new
environmental standards (e.g. air quality)
Market disturbances (e.g. higher prices of inputs)
Decreased competitiveness
Damage to company image
Extra labour
Source: Adapted from Jain (2011).
There is an undersupply of information about the effects of climate change upon local industries. Much
knowledge can be drawn from research undertaken outside of South Australia
30
, however given the
geographic variability in forecast climate change impacts as well as the industrial/business profile of the
Study Area, more localised analysis of climate change impacts on industry is warranted.
Given the economic importance of the Study Area’s industries to the region and the State, it would be
prudent to undertake more detailed analysis of climate change risks on business assets and operations
and the capability of business to manage these risks. This would fill a large information gap that may also
benefit other adaptation planning initiatives across the State.
11.4. Private Infrastructure
Tables 11.5
to
11.12
contain a summary of the principal privately operated infrastructure assets
throughout the Study Area.
Figure 10.2 and 11.2
show the location of these assets.
It is important to recognise the significant role that electricity and transport infrastructure located within the
Study Area performs for the community and industry across the whole State. Should climate change
cause damage to these assets, there is likely to be a range of economic and social impacts felt within and
well beyond the Study Area.
30
The National Climate Change Adaptation Research Facility (NCCARF) has a program of research work that is examining impacts
on business and industry. NCCARF is a partnership between the Australian Government’s Department of Climate Change and
Energy Efficiency, Griffith University and other funding bodies.
