Public concern over environmental issues

IBISWorld forecasts the percentage of people who are concerned about environmental issues to grow by 1.2 percentage points in 2024-25 to reach 82.9%. The increasing prominence of environmental issues in public discourse is expected to support this increase. However, continued concerns over the cost-of-living crisis have driven Australians to prioritise other issues, limiting growth over the period.

Consumers who are confident in the state of the economy and their financial status are more likely to support the investment of private and public funds in addressing climate change and preserving environmental assets. Conversely, consumers who feel less secure about their economic future are more likely to focus on economic issues rather than environmental ones.

Sharply declining and negative consumer sentiment has pushed down public concern over environmental issues in recent years as consumers have been more concerned over the economy and their own financial status. This same decline was also evident during the initial outbreak of the COVID-19 pandemic as consumers became more concerned about their financial situation. In 2024-25, consumer sentiment is expected to strengthen as cost-of-living pressures on Australian households ease, driving an expected growth in public concern for the environment.

Despite consistent warnings from scientists, economic turmoil attached to the fallout of the pandemic has diverted public concern to other issues, particularly immediate economic concerns related to rising cost-of-living pressures. However, an uptick in global climate protests over the period has contributed to greater public visibility of climate change, tempering declines in public concern for the environment. In addition, extreme weather events like floods and bushfires have also increased awareness surrounding environmental issues, highlighting the link between natural disasters and climate change. Overall, IBISWorld forecasts the percentage of people concerned about environmental issues to decline at an average annual rate of 0.7 percentage points over the five years through 2024-25.