Mallon warns some Australian neighbourhoods could become what he calls “climate ghettos”.

“There are certain areas where you will start to see a negative spiral,” he says.

One of the major obstacles preventing reform is that no-one is willing to admit there’s a problem, according to Mallon.

He says because banks and insurance companies have exposure in these sub-prime climate markets, it’s not in their interests to raise the alarm.

We're on the eve of destruction....