RBA board member highlights climate change 'policy vacuum'

A Reserve Bank board member and an internationally recognised climate change expert has expressed concern at the lack of Government policy to effectively deal with global warming.

Warwick McKibbin has told business economists in Sydney any measures introduced now will not have an impact for another 50 years.

"The big problem I worry about is actually not what climate change is doing to our economy - it's what the policy vacuum at the national level and the global level is doing in foregone economic activity," he said.

"In this country and in other countries we are not putting in place infrastructure for energy production.

"We are not making long-term investment decisions because we have no idea what the climate regime is going to be next week, next year, 10 years from now."