Seven years on from Black Summer - Blue Mountains City Council calls on big polluters to pay for climate damage

Climate Media Centre

September 30, 2026

Blue Mountains City Council unanimously passed a motion overnight calling on the Federal Government to introduce a levy on fossil fuel companies, to cover the soaring costs of worsening climate disasters being borne by local councils and communities across Australia.

The motion follows a local community campaign highlighting how coal and gas corporations are making billions while communities are left paying the costs of climate pollution through rising insurance premiums, damaged infrastructure and disaster clean-up costs.

Nationally, fires, floods and cyclones cost Australia $38 billion per year, equivalent to $3,800 per household. Australia’s first national climate risk assessment found 750,000 properties may become uninsurable by 2050.

Mayor Mark Greenhill OAM, said: “The Blue Mountains is one of only two cities in the world surrounded by a World Heritage Area and in 2019-2020’s Black Summer, we saw over 80% of it burned by catastrophic bushfires. As climate change worsens, these fires will grow more intense - and our Council is left to foot the bill for their damage.

“We already passed a Climate Emergency Declaration in 2019: a motion calling for the establishment of a Climate Compensation Fund is the logical next step.”

Anne Welch, Blue Mountains Climate Compensation Group said: “We all want to live in safe and thriving communities. But right now our community is being left to pick up the bill for climate pollution while big coal and gas corporations make billions in profits.

“If you make a mess, you should clean it up. Local councils and residents shouldn’t be left holding the bill while corporations pocket the profits. There is almost 100% support in our surveys for major polluters to pay their fair share. Their extractive products, coal, oil and gas make a 70% contribution to pollution and thus climate-related costs. That’s why our community is calling for a Climate Compensation Fund so big polluters pay their fair share and communities have the resources they need to stay safe and thrive.”

Serena Joyner, CEO, Bushfire Survivors for Climate Action said: “Australia has always had bushfires, but as a Blue Mountains local for 28 years I know how much harder it is to defend against bushfires made more dangerous by climate change. I work with Australians who have lost everything to catastrophic fires, and like many people in the mountains I worry about protecting my home, being able to afford insurance and the safety of my loved ones who volunteer to keep our community safe. It’s time that the big polluters who are driving climate change help pay the costs that are otherwise paid by us, our Council and state and federal governments.

“I congratulate the Council for passing this important motion, and also the community for leading this campaign.”

The successful motion makes Blue Mountains 13th in a growing number of councils backing the Communities for Climate Compensation campaign, building on earlier wins at City of Sydney, City of Parramatta, and Bayside councils. Blue Mountains City Council also voted unanimously in favour of taking the motion to the Local Government NSW's conference in November. Across the country, the West Australian LGA endorsed the establishment of a Climate Compensation Fund at its AGM two weeks ago.

The council will ask the Federal Government to establish a Parliamentary Inquiry into the adequacy of the 2025 National Adaptation Plan, specifically addressing the lack of additional funding for local government already bearing the brunt of costs of tackling the impacts of extreme weather events in local communities. 

Photos and video can be found here: Blue Mountains WIN photos 

Audio for news grabs here: Anne Welch audio for news grabs

Media contact:
Laura Corrigan | 0423 690 152 | [email protected] 

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BACKGROUND

• Blue Mountains City Council passed its notice of motion unanimously on Tuesday 29 September, 2026.

• The Communities for Climate Compensation campaign is calling on the Federal Government to establish a National Climate Compensation Fund, financed through a levy on major coal, oil and gas corporations, to fund disaster recovery, infrastructure repair and community resilience.

• Fires, floods and cyclones currently cost Australia $38 billion per year — equivalent to $3,800 per household — rising to $73 billion projected by 2060.

• 434 of Australia’s 537 councils were impacted by climate-fuelled disasters between 2019 and 2023.

•  Australia’s national climate risk assessment found 750,000 properties may become uninsurable by 2050, with $611 billion projected to be wiped from the Australian property market.

•  Federal and state governments provide approximately $14.9 billion annually in fossil fuel subsidies — more than 14 times the nation’s $4.75 billion disaster response fund (Australia Institute, 2025).

• Santos reported ten consecutive years of zero corporate tax payments to 2024–25, despite $47 billion in sales.

• Coal, oil and gas corporations are responsible for three quarters of Australia’s climate pollution.