Why is NZ spending far more on responding to climate disasters than on reducing future risk?
Only 3% of spending on natural hazards focuses on reducing risk, allowing governments to shift liability but leaving communities unprepared.
New Zealand is spending far more on responding to climate disasters than on reducing future risk, according to the Climate Change Commission's latest reports. The commission found that 97% of government spending on natural hazards since 2010 has been allocated towards dealing with and recovering from disasters, while only 3% has gone towards mitigating future risks.
This problematic spending pattern is not only ineffective but also risks exacerbating the climate crisis. For instance, in South Dunedin, approximately 6,000 houses are at risk of flooding and sea-level rise, with seven possible responses costing between NZ$2 billion and $10 billion each. The council has requested additional engineering-based solutions, but the commission warns these measures may be considered maladaptive, necessitating clearer government guidance and support.
Insurance premiums have also skyrocketed since January 2023, when Auckland faced one of New Zealand's worst floods. In flood zones, some homeowners (potentially 4% of the affected) cannot secure insurance at all. However, "insurance retreat" – when people cannot afford comprehensive coverage – could be even more detrimental. The extent of this retreat remains unknown due to a lack of data collection.
Politicians often aim to avoid blame for policy failures, which can lead to inaction and further jeopardize efforts to transition to a stable and resilient world.
While Minister for Climate Change Simon Watts has proposed a law change requiring councils to develop adaptation plans for high-risk communities, he has yet to specify the funding source, suggesting that cost-sharing will be determined in the next government term. This approach potentially places the burden on councils while shielding the central government from accountability.
The government's decarbonisation efforts are also lagging behind, with 82% of the necessary reductions for 2026-2030 now at risk, as are 99% of cuts required for 2031-2035. The electricity, agriculture, and transport sectors are primarily responsible for these emissions, with New Zealand's carbon dioxide emissions from fossil fuel combustion poised to rise despite the government's weakened clean vehicle standards.
Written by urgent.news from The Conversation AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
