Victoria’s Infrastructure at Risk: $57 Billion in Assets Threatened by Climate Change
A report by Infrastructure Victoria has identified that at least $57 billion worth of infrastructure in the state is at risk from bushfires, floods, and extreme heat.
The analysis covers $318 billion in state-owned or regulated assets and projects that costs could exceed $71 billion in coming decades.
Key Findings
Most Vulnerable Sectors
- Roads
- Rail
- Energy infrastructure
- Health assets
Primary Hazards
Bushfires carry the highest potential costs, followed by floods and extreme heat.
Geographic Concentration
Melbourne and surrounding areas face the largest share of damage costs, along with regional centres including Geelong, Mildura, Shepparton, Portland, and Bendigo.
Specific Assets at Risk (2030 Low-Emissions Scenario)
Asset Class Estimated Cost Roads Up to $20 billion Rail Up to $10 billion Energy $7 billion Health $5.3 billionRisk Context
The report models risk for 2030 and 2070 under different emissions scenarios. Victoria’s average temperature has risen 1.2°C since 1910, increasing heatwave intensity and frequency. The state has become drier, with projected increases in short-duration extreme rainfall and fire weather.
Mitigation Potential
Funding high-priority adaptation actions could save millions in recovery costs.
For example, cleaning stormwater drains offers a return of $5 in reduced damage for every dollar spent. Infrastructure Victoria CEO Jonathan Spear called for factoring climate risks into maintenance and new construction to ensure infrastructure continues to function under more extreme weather.