This report offers valuable insights on the financial cost of climate inaction versus decisive action for the Auckland region. While the report primarily considers GDP and workforce impacts – which are useful to compare economic implications at global, national and regional levels – it doesn't provide a full picture of the implications and cost of our changing climate. For this reason, transition plans for our region must also consider the wider impacts of climate change such as social, cultural and environmental costs and opportunities for businesses and communities.
In 2023, Tātaki Auckland Unlimited and Climate Connect Aotearoa commissioned professional services firm Deloitte to develop Tāmaki Makaurau Auckland’s turning point: the cost of climate inaction vs decisive action. The report takes a regional lens to Deloitte’s previous work modelling Aotearoa New Zealand’s Turning Point by assessing the impact of climate inaction and decisive action to the Tāmaki Makaurau economy.
The new research highlights the impacts of climate change on our region, including the implications of global action and physical risks, such as flooding, sea level rise and heat. It focuses on the GDP and workforce impacts for Tāmaki Makaurau and the benefits of addressing those impacts.
Climate inaction and decisive action:
Economic modelling shows that climate inaction could cost Tāmaki Makaurau Auckland’s economy $800 million and more than 1200 job opportunities by 2050.
In contrast, decisive climate action could deliver $22 billion to the region’s economy by 2050 and more than 19,000 jobs.
There is also significant value in the transition to new ‘green jobs’ – those that use specific green skills or tasks to enable the environmental sustainability of economic activities.
Climate change mitigation and adaptation are primarily seen as a cost within the context of GDP. However, if dealt with decisively, mitigation and adaptation can be a positive driver of wellbeing beyond GDP, delivering environmental, social and economic benefits.
While there is initially an upfront cost of addressing climate change, there is a ‘turning point’ beyond which the benefits of action outweigh its upfront costs.
This research shows that Tāmaki Makaurau Auckland’s turning point is 2037.
What will the research be used for?
Te Tāruke-ā-Tāwhiri: Auckland’s Climate Plan highlights how we must collectively ensure Aucklanders are prepared for the transition to a zero-carbon economy. The plan describes the need to collaboratively develop a regional just transition plan; provide employees with the necessary training; and build low carbon and climate resilient skills into the New Zealand education system.
The findings highlighted in Tāmaki Makaurau Auckland’s turning point: the cost of climate inaction vs decisive action are an important starting point for identifying how national climate change policy and emissions reduction targets may impact Auckland’s economy and employment.
Tātaki Auckland Unlimited and Climate Connect Aotearoa will continue to share research insights to help better inform local planning processes and public and private decision-making, as well as continuing to deliver actions in Te Tāruke-ā-Tāwhiri: Auckland’s Climate Plan.
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