A leading voice on climate adaptation in the environment movement, AoC has been facilitating discussion around climate risks and local preparedness needs, as well as practical community-led solutions, over the past three years. Through talking to communities members on the frontline of climate impacts, and through its deep engagement in the Victorian Government’s Inquiry into Climate Resilience, the catastrophic climate risks facing Victoria and immediate need for investing in community-led climate adaptation has only become clearer.

Both the Climate Resilience Inquiry Parliamentary Report and the National Climate Risk Assessment (NCRA), which were recently released, offer clear findings that show this. 

According to the NCRA, spending on disaster recovery could increase by 5 to 7.2 times, placing increasing fiscal pressure on governments. The assessment states that this indicates that increased investment, resilience and adaptation will be required. The Inquiry into Climate Resilience found that “funding shortfalls represent a critical barrier to implementing climate resilience initiatives” and that “non‑recurrent funding for resilience projects restricts long‑term capacity building and strategic outcomes”.

Act on Climate’s permanent Victorian Community Climate Adaptation Fund (VCCAF) is mentioned specifically in the Climate Resilience Inquiry Parliamentary Report as a key funding mechanism proposed by stakeholders. It notes: “As clearly articulated by stakeholders to the Inquiry, the establishment of a Climate Adaptation Fund can significantly strengthen Victoria’s climate resilience.” It adds that it “can address gaps in existing funding frameworks, reduce the economic and social costs of climate impacts, and build long‑term resilience across the state”.

Investing in climate preparedness through a VCCAF will ensure immense future savings for Victoria in the short as well as the long term, as well as increasing Victorian communities’ safety.

An improvement in cost of living and the wellbeing of Victorians will be another outcome from a VCCAF. Climate adaptation solutions are shown to reduce Victorian’s energy costs, increase their food security, increase their health and wellbeing, reducing health costs and isolation. 

Climate impacts and disasters are already costing the Victorian Government billions and escalating social problems. Funding climate preparedness now will save lives, reduce recovery costs, reduce the cost of living, and ease pressure on our health system and economy from climate impacts.

Implementing a VCCAF in the 2026/27 state budget. would lead to enhanced environmental, social and economic outcomes.

This fund proposal has been submitted for previous budgets. This version has additions clarifying and providing examples of how ongoing funding could work and showcasing its alignment with the recommendations from the state’s Resilience Inquiry. Please read our full proposal for a VCCAF, complete with examples of cost savings and how exactly this fund would work, here or our summary below. 

As noted in the Resilience Inquiry Parliamentary Report, the “increasing frequency and intensity of extreme weather events leads to compounding and cascading effects”, making investment in climate preparation in the next budget vital.

Act on Climate is calling on the Victorian government to establish a permanent Victorian Community Climate Adaptation Fund (VCCAF) to reduce costs to the Government and Victorians by keeping people, Country and infrastructure safe from the risks presented by the climate impacts that are unavoidable and here now.

Act on Climate is also proposing a Climate Impact Statement in the State Budget in order to align public spending with its obligations to the Climate Change Act (2017) — the implementation of the state climate strategy and adaptation action plans.

Read a summary of our proposals below. Or view our full AoC 2026/27 BUDGET PROPOSALS document.

The Victorian Government’s investment in climate adaptation needs to be larger and ongoing to enable the immediate and extensive adaptations to prepare for now unavoidable climate impacts.

Act on Climate is calling on the Victorian government to establish a permanent Victorian Community Climate Adaptation Fund (VCCAF) to reduce costs to the Government and Victorians by keeping people, Country and infrastructure safe from the risks presented by the climate impacts that are unavoidable and here now.

Act on Climate is also proposing a Climate Impact Statement in the State Budget in order to align public spending with its obligations to the Climate Change Act (2017) — the implementation of the state climate strategy and adaptation action plans.

Read a summary of our proposals below. Or view our full AoC 2025/26 BUDGET PROPOSALS document.