Paying for the reality of climate change

Climate change is no longer a distant threat—it’s a daily reality for many New Zealanders. From flooded basements to the loss of coastal properties, the impacts are becoming impossible to ignore. In a recent report, an Independent Reference Group has sounded the alarm, warning that the days of government-funded property buyouts in the face of extreme weather events are coming to an end. But the question remains: who will bear the cost of this new normal?

The report, compiled by a diverse group of experts including economists, iwi representatives, and local government officials, highlights the growing complexity and expense of climate adaptation. As severe weather events become more frequent and severe, the costs of inaction are becoming staggering. For example, the aftermath of Cyclone Gabrielle alone was estimated at $14.5 billion, a figure that underscores the scale of the challenge ahead.

'We're now starting to shift our focus because of these severe weather events,' said RNZ In Depth reporter Kate Newton. 'We're no longer just talking about the science of climate change. We're talking about what that means for real people, right now.'

The government is seeking bipartisan support for climate adaptation decisions, but the political landscape is fraught with challenges. As one critic put it, the message being sent is clear: 'You are on your own.' This sentiment echoes the frustrations of local councils, which are already struggling to manage the growing costs of climate resilience without adequate funding.

Earth Sciences New Zealand, the merger of NIWA and GNS, has been conducting extensive modeling to map coastal and inland inundation risks. These studies emphasize the need for spatial planning to mitigate future damage. However, councils are not legally required to act on such findings, and with proposed rate caps, the financial burden on local governments will only increase.

Small councils, in particular, are facing significant challenges. With limited resources and often only one or two planning officers, the task of adapting to climate change is overwhelming. Meanwhile, specialists in the field have been leaving the country in search of better opportunities, exacerbating the problem.

As the climate crisis intensifies, the need for urgent and coordinated action has never been clearer. The question now is not just whether we can adapt, but how we will pay for it—and who will shoulder the cost.