Parliament has advanced discussions on a national climate adaptation strategy following a special debate on the Finance and Expenditure Committee’s inquiry report, marking a turning point in how the country addresses escalating climate-related risks.
The committee’s report, completed in late 2024 and welcomed by the Insurance Council of New Zealand (ICNZ), outlined a national framework for climate adaptation that would:
The proposed framework aims to minimise future financial burdens on communities and the state while improving resilience to events such as floods, storms, and coastal erosion.
Cameron Brewer, chair of the Finance and Expenditure Committee, told Parliament the inquiry was prompted by growing awareness of the economic and social costs of repeated extreme weather events. He cited the 2023 Auckland floods and Cyclone Gabrielle as recent reminders of how climate-related damage can disrupt homes, livelihoods, and local infrastructure.
The ICNZ endorsed the government’s direction, with CEO Kris Faafoi noting that the industry supports a national adaptation strategy that brings clarity to communities and businesses.
“New Zealanders need certainty about the way natural hazard risks from climate change are going to be managed, and government leadership in this critical area is welcome,” he said, adding that the insurance industry is prepared to support policymakers with expertise in risk modelling and mitigation planning.
Faafoi also pointed to the broader implications for financial markets, saying that unmanaged climate risk could undermine the long-term viability of property and insurance markets.
Several MPs from across the political spectrum raised additional priorities. Labour’s Dr Deborah Russell argued for a stronger equity lens in the adaptation response, saying lower-income households often bear the brunt of hazard exposure. She also urged greater incorporation of mātauranga Māori and Treaty principles into the adaptation framework.
Green MP Francisco Hernandez called for a “polluter-pays” funding model and criticised overreliance on market-based insurance mechanisms, advocating instead for more community-led solutions.
Representatives from ACT and New Zealand First highlighted the need for robust local planning and practical investment. Jamie Arbuckle (NZ First) cited regional infrastructure efforts and called for improved coordination on data access and risk mapping. Mark Cameron (ACT) stressed the role of public-private partnerships and questioned the reliability of current climate projections used in local planning.
Te Pāti Māori co-leader Debbie Ngarewa-Packer raised concerns around barriers that prevent Māori landowners and businesses from accessing insurance and rebuilding support. She also supported regional commissioning models to fund adaptation projects through community-led approaches.
The upcoming legislation, expected later in 2025, will build on the committee’s recommendations and form part of the government’s broader response to climate risks.
Climate Change Minister Simon Watts has indicated that the policy will focus on providing a stable foundation for adaptation planning while avoiding piecemeal responses to individual disaster events.
Insurers, for their part, have said the sector stands ready to engage as partners in shaping the framework and helping ensure long-term resilience. The ICNZ has highlighted the importance of aligning adaptation policies with investment decisions to prevent widening the insurance protection gap in at-risk areas.
