Flood-prone New Zealand plans adaptation for climate impacts

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(Bloomberg) --New Zealand plans to introduce legislation before the end of the year that will create a framework to help communities and businesses adapt to the impacts of climate change.

The law will establish guiding principles and responsibilities for adaptation action, the government said Thursday in Wellington in a response to separate reports from the Climate Change Commission and a parliamentary select committee inquiry. The law is expected to be in force in 2026. 

"The government agrees with both reports that adaptation efforts need to increase in scale and pace," said Climate Change Minister Simon Watts. "That is why we are prioritizing action on climate adaptation to ensure our businesses, households and economy are more resilient to the effects of climate change."

New Zealand is bracing for more climate-related disasters such as the 2023 floods in largest city Auckland and Cyclone Gabrielle's devastation of the East Coast just days later, which together caused NZ$14.5 billion ($8 billion) of asset damage. About 750,000 citizens and 500,000 buildings are near rivers or coastal areas already exposed to extreme flooding.

Watts said the adaptation framework will outline how the government and councils will share the costs of climate-related measures such as flood protection, and will also prescribe the roles and responsibilities of businesses, households and insurers.

Insurance costs are rising in many areas sensitive to climate-related events, and the government has acknowledged that so-called managed retreat from some locations will be necessary.

Insurers support the proposed legislation and framework, and want a plan that is achievable and that all sectors can buy into, Insurance Council Chief Executive Kris Faafoi said in a statement.

"The prospect of more frequent and severe weather events may impact the stability of our housing, finance and insurance markets," Faafoi said. "We are committed to finding solutions that reduce our exposure to natural hazard risks by avoiding building in dumb places and by investing in infrastructure that protects communities."

The government also submitted on Thursday its 2035 climate targets under the United Nations' Paris Agreement framework, aiming for a reduction in greenhouse gas emissions between 51% and 55% below 2005 levels. That's only a small increase over its 2030 target of 50% reduction and was met by criticism from green groups.

"Instead of steering us away from the climate crisis, the New Zealand government is drilling holes in our lifeboat," said Alva Feldmeier, co-director of 350.org Aotearoa.