Sydney suburbs to pay most for increase in heatwaves, report

With the number of days of 35C set to double from 10 days a year in 2010 to 2019, to 20 days a year in 2070-79, the real cost of heatwaves could quadruple to $6.8bn by 2079 for households, government and businesses.

This includes costs associated with cooling homes, productivity losses and increased health costs, as stated in the Burning Money report compiled by the Committee for Sydney and Scyne Advisory.Western Sydney suburbs including Parramatta, The Hills and Canterbury Bankstown, to the Sydney fringe areas including the Blue Mountains, Penrith and Wollondilly, will bear the brunt of the economic pain.

The Burning Money report says more than half of the increased costs (59 per cent) will be spent on healthcare, and protecting vulnerable communities from the heat. This includes infants, children, the elderly, outdoor workers, the homeless and people with pre-existing health conditions.

Annual productivity loss in the workforce could also increase by more than fourfold, with businesses losing about $2bn a year by 2070.

The cost of cooling homes will also increase by 370 per cent, with household energy bills also projected to increase by $163.

The report states while the average household across Western Sydney spends about $258 a year today, that figure is expected to increase to $421 in 2079.

Committee for Sydney’s Resilience Program Director Sam Kernaghan said the economic impact of rising temperatures in Western Sydney would be worn by the residents, businesses and taxpayers of Sydney and NSW.

“Every time the mercury reaches 35C, homes and businesses are burning money across Western Sydney,” he said.

“Households are already paying more than $650 in additional per capita costs today from productivity losses, health costs, and costs of household cooling.

“Heatwaves are making Sydney’s West a less liveable and more expensive place to live, and that will get worse with time.”

However, above the economic costs, which will impact the “utilities, construction and the logistics sectors,” are the health ramifications, he said.

“Far more important than lost productivity is people losing their lives at work, on the sporting field and in their homes in Sydney,” he said.

“Heat is Australia’s silent killer, responsible for more deaths than all other natural disasters combined.”

Current figures from the government agency AdaptNSW states temperatures in Western Sydney, are already 6C to 10C hotter than the rest of the city during extreme heat events.

In January 2020, Penrith officially soared to the hottest place on earth, with temperatures reaching 48.9C.

Alarmingly, heat loggers commissioned by the Penrith City Council, state temperatures even exceeded 50C in Berkshire Park (52C) in Agnes Banks (51.5), and Badgerys Creek (50.1C).