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Paying for the reality of climate change
Paying for the reality of climate change

Newsroom

time2 days ago

  • Business
  • Newsroom

Paying for the reality of climate change

The 100-year floods are rolling in on a regular basis; the rain doesn't let up; no one wants a cliff-top property anymore. Climate change is no longer just about things you can't see or touch. It's about running from rising water and bailing out the basement. 'I think there has been a lot of emphasis both in reporting and in people's understanding of climate change … and the science behind that and how it's getting worse,' says RNZ In Depth reporter Kate Newton. 'We're now starting to shift our focus because of these severe weather events that we're seeing more frequently, and at a greater level of severity, to what that actually means for us now, and the fact that climate change is no longer this far-off, distant prospect, but something that is affecting real people and real lives, at this very moment.' Today on The Detail we look at how we adapt to this new normal, and who will pay for it, after a report by an Independent Reference Group recommended essentially that the days of property buy-outs have a limited life. The reference group included economists, iwi, bankers, insurance and local government representatives and was set up by the Ministry for the Environment. Newton goes through the findings on climate mitigation and adaption, which she says are politically unpalatable, and extremely expensive. 'There's a whole lot that goes into it and every step of it is complex and every step of it is expensive. But we also need to remember that even if we do nothing, it's still expensive. 'I think the top estimates of costs involved with Cyclone Gabrielle was $14.5 billion – it's a huge amount of money. 'But you're looking at things like, even just understanding where the risk is, and how severe that risk is, and how it might change in the future – it's a huge amount of work.' The Government wants bipartisan support on decisions because future certainty is required but also, Newton points out, because of the bleak message it's likely to send – in the words of one critic: 'You are on your own'. But firm decisions are unlikely to come any time soon. 'It's something that's been a long time coming and I think [Climate Change Minister] Simon Watts is running into similar problems to his predecessor James Shaw, who tried for six years to pass a climate change adaptation act,' says Newton. The main issue with that failure was around the complexity of how we do it and who pays for it. 'This is one of those big thorny issues that if you're changing the rules and changing how people adapt every three or six or nine years, it gives nobody any certainty in the future.' Earth Sciences NZ (which is the merger of Niwa with GNS) has done a huge amount of modelling work around the country, mapping coastal inundation risks, and its next body of work due out soon is on inland inundation. Other bodies of work have pointed out that we need spatial planning to avoid destruction by weather in the future. That includes identifying areas of particular risk, and having a plan for them, whether that is creating a wetland or building a sea wall or stop banks, or if a retreat from an area should be mandated. But councils aren't required by legislation to do such work; and if the Government puts a cap on rates as it's discussing, it's likely they won't be able to. They just won't have the money. Small councils also have the issue that their planning departments might consist of one or two people, and the job is far bigger than that. As well, specialists who were doing such work have had job cuts – and those experts have gone overseas where their skills are in demand. Check out how to listen to and follow The Detail here. You can also stay up-to-date by liking us on Facebook or following us on Twitter.

A Warning From The Future: The Risk If NZ Gets Climate Adaptation Policy Wrong Today
A Warning From The Future: The Risk If NZ Gets Climate Adaptation Policy Wrong Today

Scoop

time4 days ago

  • Politics
  • Scoop

A Warning From The Future: The Risk If NZ Gets Climate Adaptation Policy Wrong Today

New Zealand 2050: On the morning of February 27, the sea surged through the dunes south of the small town of Te Taone, riding on the back of Cyclone Harita's swollen rivers and 200mm of overnight rainfall. By mid-morning, floodwaters had engulfed entire streets. Power was out. Roads were underwater. Emergency services responded swiftly, coordinating evacuations and establishing shelters. But for many residents, the realisation came days later: the help they expected after the water receded – support to rebuild, relocate or recover – wasn't coming. 'We lost everything,' says Mere Rākete, a solo mother of three, standing outside her home, now uninhabitable. 'I rang the council, the government helpline, even the insurance company. They all said I'm not covered.' Mere lives in a suburb long identified as 'high risk' under national climate risk maps. She didn't stay there because she ignored the risk. She stayed because she had no viable alternative. 'They say we had a choice. But when houses here were $400,000 and anything safer was $700,000, what choice is that?' No more buyouts Although this story is fictitious, it describes a plausible future based on how New Zealand's draft climate adaptation framework could play out. It reflects the likely consequences of policy decisions that focus narrowly on financial exposure. Last week's recommendations from the Ministry for the Environment's Independent Reference Group rightly called for urgent and improved risk information. But they focused narrowly on direct risk to property and infrastructure. In particular, the group proposed that beyond 2045 the government should not buy out property owners after climate-related disasters (or those at high risk of future events). Responding to the recommendations last week, climate policy analyst Jonathan Boston wrote that ruling out property buyouts 'is philosophically misguided, morally questionable, administratively inept, and politically naïve'. But it appears the government shares the reference group's view. Addressing the current flooding disaster in the Tasman district, Prime Minister Christopher Luxon said, 'In principle, the government won't be able to keep bailing out people in this way.' Beyond the specifics of financial compensation, however, lie the cascading and systemic risks that follow a major weather event. In reality, the impacts do not stop at the property boundary. When a family is displaced, or even fears displacement, the consequences ripple outward: schooling is disrupted, jobs are lost, mental health declines, community networks fragment and local economies suffer. Research shows how the after-effects of a disaster domino through interconnected systems, affecting health, housing, labour markets and social cohesion. A policy decades in the making Back to the future: our fictional town of Te Taone sits in a floodplain identified decades ago. By the 2040s, insurance had become unaffordable. New development slowed but many families, especially those on lower incomes, remained, with few relocation options. The adaptation framework proposed in 2025, based on a 'beneficiary pays' model, created a 20-year transition period that ended in 2045. After that, residents in high-risk areas became ineligible for buyouts or standard recovery funding. Future government investment was limited to Crown-owned assets or projects with 'national benefit'. Restoration of local infrastructure such as roads and power lines would depend on whether councils or ratepayers could pay. Today, parts of Te Taone remain cut off. Power is still out in some areas. The school has relocated inland. Local shops have closed. Many homes are damaged, waterlogged, or destroyed, and some families are now living in tents. 'It's not that we weren't warned,' says a local community worker. 'It's just that we couldn't afford to do anything but live with the risk and hope for the best.' Te Taone's experience is now raising deeper concerns that Aotearoa New Zealand's climate adaptation framework may be entrenching a form of ' climate redlining '. Those with the means can move to escape risk, while others are left behind to bear it. Adaptation or abandonment? Māori communities are especially affected. Parts of the floodplain include ancestral land, some communally owned, some leased by whānau who cannot easily relocate. In many cases, this land was only recently returned from the Crown, after years of land court proceedings or Treaty settlements. The prospect of abandoning it again, without coordinated support, echoes earlier waves of institutional neglect. Mere Rākete is now considering joining a class action, one of several reportedly forming across the country. Residents are challenging the government or local councils over a failure in their duty of care by allowing homes to be built, sold or inhabited in known risk zones without clear and enforceable warnings or adequate alternatives. Meanwhile, adaptation experts are calling for a reset: a national compensation framework with clear eligibility rules, long-term investment in affordable housing beyond hazard-prone areas. Above all, they argue, government policy based on a climate adaptation framework developed 25 years ago has not reduced exposure to risk. Instead, it has redistributed it from those who could leave to those who couldn't. In the meantime, the remaining residents of Te Taone wait for the next cyclone and wonder whether, next time, anyone will help. Planning with people in mind Our imagined future scenario can be avoided if governments take a broader view of adaptation. Treating climate risk as an individual responsibility may reduce short-term government liability. But it will not reduce long-term social and fiscal liability. The risk of failing to act systemically is that the country pays in other ways – in fractured communities, rising inequity and preventable harm. Adaptation to climate change has to be about more than limiting the upfront costs of buyouts or infrastructure repairs. Ignoring the wider impacts will only shift the burden and increase it over time. Real economic and community resilience means planning with people in mind, investing early and making sure no one is left behind. That work must begin now. Disclosure statement Tom Logan owns shares in Urban Intelligence. He receives funding from the Ministry for Business, Innovation and Employment and the Royal Society of NZ. Paula Blackett works part time for Urban Intelligence. She receives research funding from the Ministry for Business, Innovation and Employment and undertakes consulting work regarding climate risk and adaptation.

Who will pay to protect communities from flooding?
Who will pay to protect communities from flooding?

Otago Daily Times

time5 days ago

  • Climate
  • Otago Daily Times

Who will pay to protect communities from flooding?

Canterbury councils want to know who pays for preparing for climate change as major storms and flooding threaten local communities. Local Government New Zealand (LGNZ) has warned a lack of clarity over who pays for measures to protect communities from sea level rise, flooding and weather events could leave ratepayers with a hefty bill. The concern follows the release of a report from the Ministry for the Environment's Independent Reference Group on Climate Adaptation, which raises the question of who should pay. Waimakariri District Council chief executive Jeff Millward said his council is beginning work on a climate adaptation strategy as it looks to prepare for the threat of sea level rise and the growing number of severe weather events. For earthquakes and flooding events, the council has insurance through the local authority protection plan, which covers 40 percent and the balance coming from Government or loan funding. But preparing for sea level rise and flood mitigation measures costs money, Mr Millward said. As the risks become more severe, there may be changes to what insurance is available, or even ''no insurance at all''. ''Does it fall back on the ratepayer or the taxpayer? It is a bit more complicated and a lot more discussion has to happen.'' Councils already have clauses in District Plans identifying natural hazards and impose regulations such as minimum distances from the waterline and raising floor levels to 1.5 metres off the ground. ''People like living near the beaches or rivers, but it puts those properties at risk, so there is going to be a lot of modelling work done to identify the risks and develop and array of tools,'' Millward said. Kaikōura District Council chief executive Will Doughty said the region's councils are working on adaptation plans, following the launch of the Canterbury Climate Partnership Plan by the Canterbury Mayoral Forum in December. ''One thing is for sure - there is going to be a bill. I think we do need clarity and it is a conversation we need to have. ''I think the steps Canterbury has taken as a region to put that action plan in place has put us in a good position. ''It's a much bigger issue than any one particular district and the more joint action we can be doing the better.'' The recent report warned it may not be sustainable for government buy-outs to continue for properties in at risk areas, with weather events such as those facing the Nelson region expected to become yearly events in some areas. It recommends phasing out those buy-outs over a 20 year period. Adaptation measures, such as flood schemes, sea walls and infrastructure, should be funded by those who benefit, the report advised. On Monday, Prime Minister Christopher Luxon told RNZ the government will not be able to keep bailing out homeowners after major floods. The Hurunui District Council has completed climate adaptation plans in partnership with its beach communities. It has led to the council buying a $3.8m block of land south of Amberley to prepare for future events. Residents from at-risk communities will be able to secure sections by paying a targeted rate over the next 30 years. The plot of land would be attached to their existing property, so the two properties cannot be sold separately. When the time comes, residents could transport their house to the new section, or build onsite. Council chief executive Hamish Dobbie the issue is complex and councils need some guidance from government. ''Some guidance suggests we should be involved at all. We should only be involved in roads and pipes. ''There needs to be a good sensible conversation about this.'' LGNZ vice president Campbell Barry said the ministry's report has failed to address some concerns previously raised by local government. ''It's good to see the report's sense of urgency. Our submission on climate adaptation in June last year stressed that action is needed now. ''We need to have better policies and frameworks in place to cater for increasingly severe and frequent weather events. ''Local government can't afford to have another Cyclone Gabrielle. The aftermath of a significant weather event like that comes with massive financial, infrastructure and human costs for communities.'' Barry said the lack of clarity meant the burden of paying for adaptation was likely to fall on ratepayers. Luxon said Climate Change Minister Simon Watts had been working to get a bipartisan view on how to deal long term with major weather events. - LDR is local body journalism co-funded by RNZ and NZ On Air.

As The Sea Level Rises, Who Will Pay? Councils Seek Answers
As The Sea Level Rises, Who Will Pay? Councils Seek Answers

Scoop

time5 days ago

  • Climate
  • Scoop

As The Sea Level Rises, Who Will Pay? Councils Seek Answers

North Canterbury's councils want to know who pays for preparing for climate change as major storms and flooding threatens local communities. Local Government New Zealand (LGNZ) has warned a lack of clarity over who pays for measures to protect communities from sea level rise, flooding and weather events could leave ratepayers with a hefty bill. The concern follows the release of a report from the Ministry for the Environment's Independent Reference Group on Climate Adaptation, which raises the question of who should pay. Waimakariri District Council chief executive Jeff Millward said his council is beginning work on a climate adaptation strategy as it looks to prepare for the threat of sea level rise and the growing number of severe weather events. For earthquakes and flooding events, the council has insurance through the local authority protection plan, which covers 40 percent and the balance coming from Government or loan funding. But preparing for sea level rise and flood mitigation measures costs money, Mr Millward said. As the risks become more severe, there may be changes to what insurance is available, or even ''no insurance at all''. ''Does it fall back on the ratepayer or the taxpayer? It is a bit more complicated and a lot more discussion has to happen.'' Councils already have clauses in District Plans identifying natural hazards and impose regulations such as minimum distances from the waterline and raising floor levels to 1.5 metres off the ground. ''People like living near the beaches or rivers, but it puts those properties at risk, so there is going to be a lot of modelling work done to identify the risks and develop and array of tools,'' Millward said. Kaikōura District Council chief executive Will Doughty said the region's councils are working on adaptation plans, following the launch of the Canterbury Climate Partnership Plan by the Canterbury Mayoral Forum in December. ''One thing is for sure - there is going to be a bill. I think we do need clarity and it is a conversation we need to have. ''I think the steps Canterbury has taken as a region to put that action plan in place has put us in a good position. ''It's a much bigger issue than any one particular district and the more joint action we can be doing the better.'' The recent report warned it may not be sustainable for government buy-outs to continue for properties in at risk areas, with weather events such as those facing the Nelson region expected to become yearly events in some areas. It recommends phasing out those buy-outs over a 20 year period. Adaptation measures, such as flood schemes, sea walls and infrastructure, should be funded by those who benefit, the report advised. On Monday, Prime Minister Christopher Luxon told RNZ the government will not be able to keep bailing out homeowners after major floods. The Hurunui District Council has completed climate adaptation plans in partnership with its beach communities. It has led to the council buying a $3.8m block of land south of Amberley to prepare for future events. Residents from at-risk communities will be able to secure sections by paying a targeted rate over the next 30 years. The plot of land would be attached to their existing property, so the two properties cannot be sold separately. When the time comes, residents could transport their house to the new section, or build onsite. Council chief executive Hamish Dobbie the issue is complex and councils need some guidance from government. ''Some guidance suggests we should be involved at all. We should only be involved in roads and pipes. ''There needs to be a good sensible conversation about this.'' LGNZ vice president Campbell Barry said the ministry's report has failed to address some concerns previously raised by local government. ''It's good to see the report's sense of urgency. Our submission on climate adaptation in June last year stressed that action is needed now. ''We need to have better policies and frameworks in place to cater for increasingly severe and frequent weather events. ''Local government can't afford to have another Cyclone Gabrielle. The aftermath of a significant weather event like that comes with massive financial, infrastructure and human costs for communities.'' Barry said the lack of clarity meant the burden of paying for adaptation was likely to fall on ratepayers. Luxon said Climate Change Minister Simon Watts had been working to get a bipartisan view on how to deal long term with major weather events.

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