Submission on Treasury's Long-term Insights Briefing
Damage in Hawke's Bay following Cyclone Gabrielle. Leonie Clough, Unsplash.
The Commissioner has provided feedback on the Treasury’s Long-term Insights Briefing focused on the fiscal risks posed by climate change. He warns that the Crown must improve its approach to managing these risks – particularly from increasing severe and frequent weather events.
He states: “By focusing on minimising the Crown’s liability in the near term, we risk working against the goal of minimising the long-term costs to New Zealand. In particular, we risk making insufficient investment to reduce risks and instead condemn future governments to ongoing pressure for bailouts.”
The submission urges the Government to gain a better understanding of its at-risk assets, and the costs associated with adverse events, including costs from the stress and mental health disorders experienced by affected communities. The Commissioner suggests climate adaptation costs could be reframed as a long-term investment in maintaining or transforming New Zealand’s productivity.