A parliamentary report on climate adaptation is an important signal of the need to urgently tackle the impact of climate change on communities and protect people lives and property, the Insurance Council of New Zealand Te Kāhui Inihua o Aotearoa (ICNZ) says.
The Finance and Expenditure Select Committee released its Inquiry into Climate Adaptation this morning.
“The report is an important signal from Parliament that there is a general political consensus on the challenge facing New Zealand. We now need cross-party consensus to face that challenge,” ICNZ chief executive Kris Faafoi said.
“It is a valuable reminder of the urgent task ahead. This is an opportunity for New Zealand to act now and reduce the risks climate change poses to future generations.
“We encourage the Government to consider a lead agency on climate adaptation to support this approach and bring together central government, councils, the private sector and communities to effectively mitigate risks and ensure sustainable adaptation measures.
“New Zealand is particularly vulnerable to natural hazards risks and the report shows the pressing need to adapt to the changing climate. The Auckland Anniversary Weekend and Cyclone Gabrielle events resulted in nearly $4 billion in insurance claims. Overall, the Treasury estimates the damage to infrastructure is up to $14.5 billion.
“New Zealanders need certainty about the way natural hazard risks are going to be managed, both now and in the future. We support a framework that would create a consistent approach nationally but allow for local flexibility. We recognise the value of local knowledge when it comes to risks that communities face.
“ICNZ supports improving the quality, consistency and availability of natural hazard and climate risk data to ensure we avoid building in dumb places. This will increase transparency and awareness of risk which we believe is a good thing for homeowners and communities.
“This can lead to community and local and central government action to plan for and mitigate the impact of climate related damage, which can then lead to more resilient, safer and stronger communities which will have greater access to affordable insurance.
“We are committed to working with the Government and other groups to explore the options available, including the development of financial instruments such as resilience bonds.
“There will be some difficult conversations but they are ones that New Zealand needs to have. The investment in climate adaptation is likely to be sizeable and is likely to require funding from a variety of sources,” Kris Faafoi said.
