Regulating Systemic Risks: Lessons from the regulation of climate change risks to Australian infrastructure

Climate change is widely considered to be one of the most significant threats to the future well-being of manking and, indeed, it has the potential to threaten the very existence of humanity. Climate change produces systemic risks, which are risks that affect and could compromise the systems on which society depends, including systems of infrastructure comprising residential housing and commercial buildings as well as critical transport, telecommunications, water and energy infrastructure. Systemic risks are usually characterised by inherent complexity, profound uncertainty and, at times, overwhelming ambiguity. In combination, these features pose significant regulatory challenges. This thesis explores how systemic risks should ideally be regulated, using the regulation of risks to Australia’s infrastructure by way of illustration.