New Zealanders are being told they are “on their own” in the face of future climate-related disasters, following controversial recommendations to withdraw government financial assistance for property buy-outs and adaptation measures. A report from an independent reference group, established by the Ministry for the Environment, has ignited a fiery debate over who should bear the costs of a changing climate.
Released Wednesday, the report proposes that after a 20-year transition period, homeowners affected by floods or other extreme weather events should no longer anticipate property buy-outs from the government. Additionally, it suggests that funding for crucial adaptation infrastructure, such as flood schemes and sea walls, should primarily follow a “beneficiary pays” model.
This means those who stand to gain most from these investments would contribute more, a report from RNZ noted. Central government investment, the independent group advises, should largely be reserved for protecting Crown assets or projects yielding broader national benefits.
Victoria University emeritus professor Jonathan Boston, a prominent climate policy expert, strongly condemned the recommendations, stating the message to New Zealanders is unambiguous: “You are on your own.” Boston, who participated in a previous climate adaptation working group, labelled the withdrawal of financial assistance and the shift of decision-making to individuals as “fundamentally flawed” and “morally bankrupt and highly undesirable.”
He argued that a core governmental responsibility is to protect its citizens from natural disasters. Boston also criticised the report’s assumption of rational individual behaviour, highlighting that “people suffer from all kinds of cognitive biases” and often lack the financial resources to make sound decisions. He questioned the practicality of a fixed transition period, noting that climate risks will continue to evolve beyond any set end-date.
Raewyn Peart, policy director for the Environmental Defense Society, expressed concern that the report appears to favour “unmanaged retreat” over a coordinated “managed retreat.” She warned that providing information and a transition period without ongoing support would be “unworkable,” potentially trapping vulnerable individuals in high-risk areas. Peart also highlighted the lack of clarity regarding central government financial and administrative support for local councils, who are expected to shoulder much of the adaptation planning.
The report comes as insurers continue to warn about rising premiums and potential withdrawals from high-risk areas. Insurance Council chief executive Kris Faafoi welcomed the report’s call for urgent action but acknowledged the “very difficult issues” surrounding funding.
While there is little political appetite for ongoing expensive buy-outs, the question of who pays for adaptation remains contentious. Faafoi suggested that a “beneficiary pays” approach could lead to significant costs for some communities, potentially through targeted rates.
Climate change minister Simon Watts said that the government welcomes the independent recommendations and will review them before announcing decisions. He said the report is not yet government policy but will inform the development of a national adaptation framework.
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