Flood prone Melbourne council calls for Climate Compensation Fund to keep community safe from worsening extreme weather
Climate Media Centre
City of Port Phillip Council has unanimously passed a motion calling for a National Climate Compensation Fund to help keep the community safe, resilient and financially secure as it faces the rising costs of sea level rise, flooding and storm surges intensified by climate change.
The costs of climate-driven disasters are now twelve times higher than twenty years ago, while local government revenue has grown only three times over the same period. The national push for a Climate Compensation Fund seeks to address this imbalance, giving councils the resources to manage climate damage and help their communities thrive.
Port Phillip Councillor Justin Halliday who moved the motion, said:
“Local councils are on the front line of the climate crisis. In Murrindindi, Campaspe, Lismore and Shepparton, communities are counting the costs of climate change and struggling to rebuild.
“Here in the City of Port Phillip, we've been lucky recently to avoid major flooding and storms. But our residents are paying for disaster preparation, drainage and infrastructure upgrades, and to pick up the pieces after extreme weather.
“We're calling for a National Climate Compensation Fund to give councils dedicated sustainable funding to prepare for and recover from increasingly frequent disasters. This will make sure the cost of climate damage is shared fairly, instead of falling on residents while the giant fossil-fuel corporations pocket record profits.”
The Victorian Government’s Port Phillip Bay coastal hazard assessment found a quarter of the Port Phillip council area – which includes St Kilda, Elwood and Port Melbourne – was at high risk of flooding as sea levels rise due to climate change.
Louise Kyle, Elwood resident, said:
“During the 2011 floods, my daughter and I walked down towards Mitford Street to see how high the water was getting. Before long, we were waist-deep in filthy, swirling floodwater. We hurried home and spent the day trying to keep the water out. Our neighbours closer to the canal weren’t so lucky, with many homes inundated and damaged. I worry about what future floods will bring, and the impact that increasingly extreme weather will have on our neighbourhood.
“Councils and ratepayers are already carrying an unfair share of the costs of climate damage. A national Climate Compensation Fund, paid for by the corporations that have profited from coal, oil and gas, is a way to make sure those responsible start paying their fair share.”
The council passed the “Climate compensation and protecting ratepayers” motion at its Ordinary Council meeting on Wednesday October 7 2026. The motion calls on the Federal Government to establish a National Climate Compensation Fund to support communities, households and local governments with the costs of climate adaptation, resilience and disaster recovery. It would provide a reliable funding stream for councils to prepare for and respond to extreme weather events like flooding, coastal erosion and storm surges.
The motion also asks the government to explore how the industries responsible for climate pollution – coal, oil and gas – can contribute to covering the costs of climate adaptation, resilience and recovery.
Rod Campbell, Research Director at The Australia Institute, and Middle Park resident said:
“It’s great to see my own local council joining others around the country in protecting the climate and the interests of ratepayers.
“If Port Phillip or any other town or suburb is battered by a storm or a bridge is washed away in a flood, the local council is left to pick up the tab. It’s happening more often and with greater severity.
“This damage is caused by fossil fuel companies, so ratepayers shouldn’t be expected to pay for the damage caused by coal, gas and oil companies.
“The federal government does have the power to tax the companies that are profiting from climate change. It is the coal and gas companies that should help pay for the disasters that they are making worse.”
The successful motion makes City of Port Phillip the 14th in a growing number of councils backing the Communities for Climate Compensation campaign, building on earlier wins including City of Sydney, Darebin, and Bass Coast councils.
Port Philip Mayor Alex Makin who seconded the motion, said:
“This isn't Port Phillip going it alone. Councils right across the country are sending the same message to Canberra: communities need dedicated, long-term funding to prepare for and recover from climate impacts, and the companies that helped cause this crisis should help pay for it.
“That's good governance. And the more councils that join this call, the harder it becomes for the Federal Government to keep ignoring it.”
MEDIA CONTACT: Laura Corrigan, Media Advisor, Climate Media Centre — 0423 690 152 — [email protected]
Photos from the council meeting are available here