One million homes will be in "very high risk" zones by 2050 and effectively uninsurable, the National Climate Risk Assessment warns, with the wider economy expected to take a hit from the effects of climate change.

Alongside a loss in property value of $611 billion by 2050 under a 2C warming scenario, the first national assessment warns of $211 billion in lost wealth from reduced labour productivity.

It spells a picture for housing where, even under 2C warming, some areas will become too costly to live, and that planning laws for construction and home insurance business models will have to change.

The report was released days before the federal government announces a 2035 target for reducing emissions to be taken to New York, where other nations will also submit their updated targets.

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