Mitigating climate change in New Zealand: impacts on Auckland’s economy

25 September 2023
Strategy & Policy
Tāmaki Makaurau
Climate Insights Report

This insights report contextualises the findings of independent research agency, Market Economics, which Climate Connect Aotearoa (CCA) and Tātaki Auckland Unlimited (TAU) commissioned. The research puts a local lens on the economic and employment impacts of the New Zealand Climate Change Commission’s national emissions reduction pathways.  

Areas examined in the insights report include GDP impacts for Tāmaki Makaurau and how jobs across the region could change in the transition to low carbon.  While the report primarily considers GDP – 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 we must also consider the wider impacts of climate change such as social, cultural and environmental costs and opportunities for businesses and communities. 

This research is important because while national emissions reduction policies have an impact at a local level, they don’t necessarily consider regional economic factors. As New Zealand’s business centre and most populated region, Auckland’s emissions profile differs from the rest of the country and presents a different set of challenges, costs, and opportunities. 

The insights report also highlights research commissioned by CCA and TAU from professional services firm Deloitte, to provide an economic assessment of climate inaction versus decisive climate action for the region, while incorporating the physical risks of climate change. These findings add to the broader base of knowledge about 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.  They also highlight the need to go beyond GDP in planning a just transition, as this measure alone underestimates the full impacts of our changing climate on our society and economy as a whole.

Crucially, the report touches on the pressing need for local just transition plans to ensure sectors are supported to transition in a way that equitably distributes the opportunities and challenges that climate change will bring.  

Furthermore, understanding the potential impact of central government climate policies on Auckland’s economy and the opportunities associated with decisive climate action, is essential to inform national emissions reduction plans that consider Auckland’s differing economic profile.  

Read Mitigating climate change in New Zealand: impacts on Auckland’s economy 


Climate Connect Aotearoa 

Action E4 in 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. This action 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.  

While these sub-actions require collaboration and partnerships with a mixture of public-private leadership, Climate Connect Aotearoa is doing its part to support businesses to prepare for the transition. The Knowledge Hub and He Kete Mātauranga have a growing library of resources to build system-wide knowledge and capacity for climate action. Our  ClimateLink tool quickly connects users with the information they’re looking for, including training opportunities, useful resources and tools. 

Our Climate Challenge programme is also underway to develop scalable and equitable climate solutions across four key sectors – starting with energy sharing. This programme also responds to Action E2, with the aim to accelerate the uptake of innovation that supports the delivery of a resilient, climate proof and regenerative economy.  



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