=
Climate Risk Expert: National Flood Adaptation Platform Needed to Mitigate Costly Floods
According to a climate risk management firm, New Zealand needs a national flood adaptation platform to combat the rising costs and financial risks caused by floods.
ClimSystems is a risk management firm specialising in climate impact assessment and adaptation. Its portfolio includes creating and developing software used to assess and adapt to climate change impacts.
The company recently urged the government to include a flood adaptation platform in its new climate adaptation framework. This statement was submitted to the Finance and Expenditure Committee (FEC) at an all-day public meeting for climate inquiry in July.
About the climate adaptation framework
In May, Climate Change Minister Simon Watts announced that the FEC would “conduct an inquiry” into the guiding objectives and principles for the climate adaptation framework. This framework is set to outline the cost of preparing for climate change impacts.
Watts also stated that the government would confirm if proper legislation was needed once the principles were established.
According to ClimSystem’s Managing Director, Peter Urich, the FEC will need a national-scale flood data and information-sharing platform with granular flood information to address flood planning properly. He told the select committee.
“We feel that flooding is a major issue right now that has been underrepresented … We believe that we need to create a national scale flood data and information sharing platform.”
As a company that has spent 20 years on the country’s flood issues, ClimSystems said that the proposed platform would help identify current and future flood risks at the asset levels. It also proposed that the public be able to collect and curate the council flood maps on the platform.
According to Urich, New Zealand’s flood adaptation plans should align with current climate standards and regulations. He calls for different stakeholders, including local and central government, to work together to align these standards.
Urich says that the FEC can leverage high-quality historical data through MetService, the national weather service provider, and weather research agencies like NIWA to collect flood data.
“There's data out there, really high quality and future climate model data, with now increasing supporting digital elevation data,” he said.
A unified approach needed
Floods have destroyed homes and caused financial setbacks for many individuals and businesses in New Zealand. Between 1968 and 2017, there were more than 80 damaging floods in the country.
This growing flooding risk has increased the price of insurance premiums, placing more burden on Kiwis. For example, the severe flooding and landslide that struck Auckland in January 2023 had a forecasted total damage claim exceeding $1 billion.
In low flood-risk areas, 17.6% of insurance premiums increased by 3.9% from the previous quarter, while in high flood-risk areas, 24.7% of insurance rose by 6.3%.
Local councils have been actively building better flood resilience in their regions. For example, the Making Room For Water program was initiated by the Auckland Council as part of its 2024-2034 long-term plan, aiming to boost the region’s resilience to flooding and climate change. However, Urich claims that the various flood planning initiatives by different councils will lead to a “mixed” approach.
“So that's why we're talking about a national unified approach,” he said.
Uric has estimated the total cost of building and running a flood adaptation platform to be between 4% million and $10 million. He claims that a neighbourhood storm could cost the government that much in damages alone.
“The big thing with all of this, and I think the main driver of all of it, we find when we talk to people is dollars and cents. When it becomes a financial issue, then it becomes something that people pay attention to,” he said.
According to Urich, the private sector will be a key driver of change around flood adaptation and will need to push forward where there’s a lag from the government.
“I’m encouraged by world movements in the private sector. And I think ultimately it's got to be through a private-public sort of relationship – we’ve got to do this together at one level,” he said.
“But [with] the lack of movement in the public sector, the private sector will get on with things because they need to be insured, they need to protect the bottom line and such. And I think they've recognised that they can be hurt,” he said.
Key takeaway
The FEC will provide its recommendations on the climate framework on September 5th. Meanwhile, companies, particularly in the construction sector, will need to protect themselves from flooding risk when planning their projects. Staying ahead with the right insurance remains critical in a volatile environment.
Bonded NZ helps builders and contractors find the best insurance, warranties, and surety bonds that keep their best interests in mind. Whether it's a big or small project, our cost-effective options help them secure their projects at every angle.
For more information about our services, contact our team today.