The Insurance Council of New Zealand (ICNZ) is urging the government to take a leadership role on climate adaptation and build New Zealand's resilience against the impact of climate change on lives and property.
The ICNZ presented its submission yesterday to the Finance and Expenditure Select Committee which is conducting the Inquiry into Climate Adaptation.
"The urgency of the climate crisis cannot be overstated. New Zealand’s vulnerability to climate-related hazards, including rising sea levels, coastal erosion, and extreme weather events, requires a clear and coordinated approach which the Government is best placed to lead on," ICNZ chief executive Mr Kris Faafoi said.
National climate adaptation model
He said, "We support the development of a national climate adaptation model to guide policy and legislative frameworks and provide long term clarity and certainty around our response to climate change. This strategy aims to bring together central government, councils, the private sector and communities to effectively mitigate risks and ensure sustainable adaptation measures.
"We have seen firsthand the impacts of the Auckland Anniversary Weekend and Cyclone Gabrielle events on lives, property, and the economy. By taking a proactive approach, adaptation measures can not only reduce these risks but also contribute to the economy’s security and community resilience.
"We also back the development of ambitious adaptation goals and clear outcomes such as a defined level of resilience achieved by 2050. The cost of achieving these outcomes should be estimated as much as possible so the funding required for adaptation is well understood.
"We acknowledge the investment in climate adaptation is likely to be sizeable and is likely to require funding from a variety of sources, including the private sector, and the development of financial instruments such as resilience bonds.”
Proactive approach
Mr Faafoi also said, "A proactive approach to adapt now makes economic sense. Research shows that every dollar invested in adaptation yields substantial economic benefits. By addressing these risks now, New Zealand can avoid the higher costs associated with future climate-related disasters.
"A coordinated approach should also consider the government’s work in related areas such as resource management reform, housing, and fast-track approval for infrastructure development to ensure there is an alignment of objectives and incentives. For example, ICNZ is supportive of reforms that bolster adaptation, resilience, and recovery from natural disasters and prevent developments in areas that exacerbate risk.”