Incentivising resilience to adverse climate change events - NZIER Insight 109

This Insight underscores the significance of promoting a standardised method for assessing the costs associated with climate change-induced weather events. Adopting a consistent approach is deemed critical for developing effective strategies that facilitate the comparison of resilience and risk costs.

The increasing frequency of climate disasters underscores the imperative for households and businesses to bolster their resilience against adverse weather events. However, the effectiveness of this preparedness hinges on access to accurate information regarding the comprehensive scope of risks faced by businesses, households and communities. Without such information, investment in resilience initiatives is less likely.

A pivotal step towards fostering resilience is the widespread adoption of a standardised method for evaluating the economic toll inflicted by climate change-induced weather events. This standardised approach is crucial for developing methodologies that facilitate the comparison of costs associated with resilience and risk. Informed decisions pertaining to investments in resilience or alternative adaptation strategies, such as managed retreat, rest on a foundation of credible assessments that illuminate the trade-offs inherent in each option. Embracing a standardised methodology enhances our ability to quantify the impacts of climate-related damage. It paves the way for informed and strategic decision-making facing evolving climate change-related challenges.