Climate Change Minister Simon Watts to introduce legislation clarifying the responsibility of local government by requiring adaptation plans in the highest priority areas

Climate Change Minister Simon Watts has announced the first actions set out in New Zealand’s National Adaptation Framework.

Watts made the announcement on Thursday and says as part of the National Adaptation Framework, the Government will be; “introducing legislation to clarify the responsibility of local government by requiring adaptation plans in the highest priority areas”.

“We have seen in recent years just how devastating floods can be, and we need to make sure our need our highest risks are being addressed.”

Alongside this, Watts pointed out that work was under way on a national flood map.

“We’ll make the map readily available, to make it easy for anyone to look up and understand the risks,” Watts says.

Watts says the Ministry for the Environment will release a request for information inviting external organisations to help support the development of the national flood map.

Organisations like Insurance Council of New Zealand - Te Kāhui Inihua o Aotearoa, Consumer NZ and Local Government New Zealand have welcomed the Government's announcement - but also raised concerns. 

“Our concern is that further regulation of councils will add to their costs without meeting the current funding challenges. At a time when people are grappling with the high cost of living, it can’t be ratepayers alone that pay for this," Local Government New Zealand vice president and Gisborne Mayor Rehette Stoltz says.

Watts says the introduction of the National Adaptation Framework will; “give us an enduring system that prepares New Zealand for the impacts of climate change, supports economic growth and keeps the overall costs to our society as low as possible”.

The National Adaptation Framework is built on four “pillars” - risk and response information sharing, roles and responsibilities, investment in risk reduction, and cost-sharing before and after an event.

When it comes to risk and response information sharing:

• A national flood map will be developed for everyone to use
• New hazard datasets and risk standards with the private sector will be developed
• The Natural Hazards Portal will be updated to provide information about risks to people and properties from natural hazards
• There will be investment in high-quality risk information to support planning and consenting decisions in the reformed resource management system
• There will be science, innovation and technology reforms to ensure the system is responsive to government priorities

For roles and responsibilities, the Framework aims to:

• Establish new national direction under the Resource Management Act to support council to take a more “robust” approach to managing risks from natural hazards for new development
• Identify areas with natural hazard risk and areas for future growth and development through the new resource management system
• Amend the Climate Change Response Act to clarify requirements for local government by requiring adaptation plans in priority areas
• Invest in the country’s ability to prepare, respond and recover from all types of emergencies with the Emergency Management Investment and Implementation Roadmap
• Focus local authorities on core services

For investment in risk reduction, there are actions to:

• Regulate to ensure councils weigh up the costs and benefits of adaptation options for their communities
• Use the Funding and Financing Framework to guide decisions on investment that protect Crown assets
• Invest in the resilience and economic prosperity of the regions through the $1.2 billion Regional Infrastructure Fund
• Proactively manage risk to Crown assets like schools and public buildings

When it comes to cost-sharing before and after an event, the Framework says a new development levy system will be introduced as part of Going for Housing Growth.

This would ensure councils charge developers a proportionate amount of the total costs of capital expenditure necessary to service growth over the long term, the Framework says.

Alongside this new tools will be introduced to support government recovery decisions after significant weather events, the Framework says.

Watts says the country and economy need to be resilient and well-prepared as New Zealand faces growing risks from floods, storms and other natural hazards.

“The new adaptation plans will help people understand what the risks are, how this will be managed, and what investment will happen in their area, so people know what to expect,” Watts says.

“Adaptation can’t happen in a silo. We’re taking action across the whole system, to sharpen our focus and make sure we are building in resilience as part of strengthening and growing our economy."

“We will keep building on these foundations over time, including taking further decisions on issues such as cost-sharing. It is important we take time to work through all these issues to ensure this framework can endure," he says.

'Further regulation of councils will add to their costs'

Local Government New Zealand vice president and Gisborne Mayor Rehette Stoltz says the framework goes some way to ensuring people know the climate risks they face but without additional funding and financing tools being made available to councils, ratepayers will end up footing the bill.

“The greater clarity is welcome, but communities alone cannot afford the huge cost that comes with addressing our climate risks.

"I've witnessed firsthand the massive impact that floods, storms and other natural hazards can have on a community, and the need for people and the economy to be resilient and well-prepared,” Stoltz says.

“Our concern is that further regulation of councils will add to their costs without meeting the current funding challenges. At a time when people are grappling with the high cost of living, it can’t be ratepayers alone that pay for this."

“Councils need access to more funding tools, such as value capture tools and a civil defence levy, to reduce their reliance on rates to fund climate adaptation," Stoltz says. 

Stoltz says when it came to the frameworks surrounding Government post-event decisions, these need to be developed in partnership with councils' input.

“We are conscious that the framework does not address the risks of legal challenge, which will limit councils’ ability to proactively build resilience and support economic growth.”

'A good start'

Insurance Council of New Zealand chief executive Kris Faafoi says: "The Government’s focus on clear roles and responsibilities, better information on natural hazard risks, and investment in risk reduction are all steps in the right direction."

Faafoi says these measures would help communities plan ahead but emphasised the urgency of putting in place rules and tools that councils need to deliver them.

"Adaptation needs to be accelerated. Some vulnerable communities are already facing repeated losses and they can’t afford to wait five years for plans and longer still for adaptation projects to get underway," says Faafoi.

"We need to see the rules, funding arrangements, and cost-sharing mechanisms finalised as soon as possible."

Faafoi also called for “enduring broad-based political support so that adaptation work continues with certainty, no matter who is in government”.

"There is still a lot to be done.”

"Insurers are committed to working with the Government, councils, and other groups as the framework is developed and implemented,” he says.

"Our goal is a New Zealand where communities are protected, risks are reduced, and insurance remains accessible. The framework is a good start. However, the real test will be in how quickly we can translate policy into action.”

Consumer NZ's Rebecca Styles says "our initial thoughts are it's positive to see that the government has released a national adaptation framework".

"Key elements, like risk and information sharing, risk reduction, and defining the roles and responsibilities between local and central government are steps in the right direction," Styles says.

But Consumer NZ was concerned about what the statement 'support market confidence and enable markets, such as housing and insurance, to reflect climate risks' will mean for property values and the cost and availability of insurance, Styles says.

"There doesn’t appear to be any indication about what support will be available to homeowners whose homes are in climate risks areas, can no longer afford insurance, and find their property values have plummeted."