Climate hazards will continue to intensify as the world warms. Reducing the underlying risk ultimately depends on accelerating global decarbonization and this remains an area of focus for CSF.
While New Zealand cannot control the global trajectory of climate change, the resilience of its towns, cities, communities and businesses is within its control. As weather events become more frequent and severe, and recovery costs increase, investment that reduces future losses becomes increasingly economically rational.
Where the cost of proactive risk reduction is lower than the losses it avoids, returns on investment can be substantial. Many of these benefits take the form of avoided costs, highlighting that greater resilience provides a foundation for future economic growth.
The consequences extend beyond individual assets and communities. If climate risks are not managed effectively, they can affect insurance availability and affordability, property values, lending and investment decisions, public finances and, over time, New Zealand’s cost of capital.
The scale of the adaptation challenge will require significant planning, coordination and investment. Public funding will remain essential, but it cannot meet the challenge alone.
Building on work already underway across government, industry and research institutions, CSF aims to strengthen the evidence base for decisions about where and how financial institutions can provide financing for adaptation and resilience, what currently constrains that financing, and where policy, regulation or market development could remove those barriers.
