Economic Perspective 27 February 2026
- 1 day ago
- 3 min read
The Latest Trending Economic News Curated for You by Balmoral Group Australia
Good morning dear readers,
This week we're focused on heatwaves, drought and climate change adaptation. New research shows that Southern drought conditions are likely being worsened by shifts in upper atmosphere east-blowing jet streams, the scorching effects of intensifying heat waves are impacting both our agricultural and eco-systems. Tools and standards can improve our response: a new on-farm emissions measurement tool, "FarmPrint", has been released by CSIRO, and the International Organization for Standardization (ISO) has published a new standard for climate adaptation governance. Finally, for this week's data visualisation, I have included a map illustrating the average drought conditions over the last 24 months, showing how much more severe the conditions have been in South Australia compared to other regions.
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Hope you enjoy the articles and have a great weekend!
Dramatic changes in upper atmosphere are responsible for recent droughts and bushfires: new research
One of the "jetstream" wind currents flowing 8-10 km above ground has been creeping south, pushing rain away from Southern Australia and contributing to current drought. The fast-flowing jet stream, specifically the subtropical jet stream over northern Australia which typically shunts rain towards South Australia, has shifted south by 10 degrees of latitude (1,000km) since 2015. This has caused west-to-east blowing rain systems to track south of the continent, completely missing Southern Australia, reducing annual rainfall by 25% and contributing to current SA drought. As the globe warms, these weather systems will be pushed further South. Given Melbourne's water storage sitting at 70% and a possible El Niño warming pattern later in 2026, systems may see further strain. Read more here.
Intense heatwaves directly threaten crops and native species. Here’s what we can do
Heatwaves are intensifying, with inland SA's air temperature reaching 50°C in January, hitting both agricultural systems and natural ecosystems. On farms, wheat yields have plateaued, mango crops have been lost, and both quality and yield has deteriorated for almonds, grapes and wine. Heat adaptation is a major priority in the Riverland, Sunraysia and Mallee agricultural systems. Ecosystem effects include mass die-offs, widespread canopy leaf death due to scorching, and the near-wiping out of an entire flying fox colony. New research shows sustained heat is most damaging when it stays overnight, and "ecological debt" (increasing vulnerability to fire, drought, pests and disease) can cause seemingly healthy ecosystems to suddenly turn. Possible solutions include heat tolerant plant species and landscape engineering. Read more here.
CSIRO unveils new tool to help farmers measure environmental footprint
The new FarmPrint tool, developed by CSIRO with support from the Clean Energy Finance Corporation, allows farmers to demonstrate environmental performance against regional benchmark data and monitor farm-level emissions changes over time. The tool also measures supply chain emissions, such as those from fertilisers, chemicals and diesel. Such emissions verification supports compliance with emerging Scope 3 emissions requirements from international and domestic regulations. Read more here.
ISO 14092:2026 Is Here — What the New Climate Adaptation Standard Means for Local Governments and Businesses
Climate adaptation financing remains a fraction of what’s needed due poor governance, with ad hoc local adaptation efforts undermining access to finance. To remediate this, the International Organization for Standardization (ISO) published ISO 14092:2026 – Climate change adaptation in February. The standard offers step-by-step mechanical instruction for organisations to define governance and responsibilities, assess and prioritise climate risks, design and implement adaptation measures, and monitor progress. Following this structure should improve access to finance for local organisations implementing climate adaptation measures. Read more here.
Australian Combined Drought Indicator (CDI)
Below is a map showing drought severity for the 24 months ending January 2026. The CDI estimates Australian drought status using precipitation, soil moisture, evaporation and NDVI satellite data. The map reflects ongoing drought conditions in South Australia with comparatively wet conditions on the east coast.
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