Economic Perspective 3 March 2026
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- 3 min read
The Latest Trending Economic News Curated for You by Balmoral Group Australia
Hello dear readers,
Welcome to this week's Economic Perspective. In this edition, we bring you insights from four articles exploring how climate, policy, and community resilience are increasingly shaping economic and social outcomes. At the same time, rising geopolitical tensions in the Middle East are adding uncertainty to global energy markets and supply chains, reinforcing the importance of resilience in economic systems, infrastructure, and communities.
From Australia’s new vehicle fuel efficiency standards creating a form of “carbon currency” for cars, to the UK aligning sustainability reporting with international IFRS standards, the policy landscape continues to evolve as governments and markets respond to climate and sustainability pressures. The impacts of rising heat are also becoming more visible, with growing discussion around climate shelters such as libraries and community centres, and the need to strengthen adaptive capacity in remote First Nations communities facing arid conditions. Together, these stories highlight the intersection of infrastructure, regulation, and resilience - issues that are increasingly shaping long-term economic planning and policy responses.
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Hope you enjoy the articles and have a lovely weekend!
How Australia’s new fuel efficiency scheme quietly created a carbon currency for cars ‑ and it’s working
In July 2025 the New Vehicle Efficiency Standard (NVES) was implemented. It applies to all new cars sold in Australia, and regulated entities (car manufacturers and suppliers) must either meet or beat set emissions targets across all cars they sell. When manufacturers beat targets they earn credits, which can be traded with other companies. Car companies have yet to start trading, but as targets gradually tighten those in credit-debt will likely pass costs on to consumers - making their cars more expensive. However, as of December almost 70% of carmakers beat fleet emissions targets. Read more here.
UK Finalises Sustainability Reporting Standards Aligned With IFRS Baseline
The UK Sustainability Reporting Standards (SRS) S1 and S2 have been published. These follow established methods based on standards from the International Financial Reporting Standards (IFRS) Foundation. Business implications are broad: while standards are voluntary, early adopters may gain credibility in increasingly climate risk-focused capital markets, and the UK SRS may become mandatory for listed companies. Read more here.
In a heatwave, a cool library or shopping centre is a lifeline. Do we need more climate shelters?
As days above 40ºC get more frequent, older and poorly insulated houses are getting dangerous, smoke from longer bushfire seasons are entering ventilation systems, and cooling energy costs are rising. Upgrading Australian homes en masse may not be viable - but communal climate refuges, such as libraries, community centres and even schools could provide much needed amenities when homes can't cope. Current shelters, such as shopping centres, fast-food, cinemas and pubs prioritise consumption over public health - making publicly funded intervention necessary. International case studies include Barcelona's Climate Shelters Network or China's revamped WW2 bomb shelters, and Blacktown City council and Eurobodalla on the NSW south coast have stepped up with their own climate refuge programs. Read more here.
Exploring adaptive capacity to arid heat in remote First Nations communities in Central Australia
Research published in February finds that First Nation communities in central Australia, despite various behavioural adaptations, are exposed to increasing heat vulnerability. This is driven by poor housing, energy insecurity, limited outdoor areas or heat refuges, and over-consumption of cooling sugary drinks. Findings suggested investment in local infrastructure and knowledge sharing which, critically, must be co-produced. Read more here.
Compound impact of heatwaves on vulnerable groups considering age, income, and disability
The figure below comes from a study of heatwave effects in Korean cities. The figure graphs "Outpatients and Inpatients of Heat-related Illness" (OI-HRI), which serves as a proxy for milder impacts of heatwaves. Looking at the figure, we see the relative vulnerability of "compound vulnerable groups", those who fall into two or more vulnerability buckets, such as being low income, disabled or elderly. People who were low income and disabled were found to be most at risk, while high income people, unsurprisingly, were least at risk.
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