The Insurance Council of New Zealand Te Kahui Ihua o Aotearoa (ICNZ) has warmly welcomed the New Zealand government's commitment to introduce legislation for a climate adaptation framework by 2025. This initiative aims to prepare New Zealanders for the effects of climate change on their lives, property, and communities. ICNZ chief executive Kris Faafoi emphasized the necessity for certainty about managing the natural hazard risks associated with climate change, stating, “New Zealanders need certainty about the way natural hazard risks from climate change are going to be managed. Government leadership in this area is welcome.”
This commitment stems from the inquiry conducted by the finance and expenditure select committee, which released its findings on climate adaptation last October. Faafoi remarked, “The Government has acknowledged the significant proportion of New Zealanders living in areas susceptible to increasing natural hazard risk and recognizes the likelihood of more frequent and severe weather events impacting the stability of our housing, finance, and insurance markets.”
According to ICNZ, the insurance industry is eager to contribute to policy formation aimed at protecting communities. The release noted, “New Zealand is a risky country and we are committed to finding solutions to reduce exposure to natural hazards by avoiding construction in high-risk areas and investing in infrastructure.” Clearly, there’s urgency to improve preparation for future natural disasters, as indicated by Faafoi, who added, “We need to work with haste on this issue to keep all of New Zealand protected from the worst effects of future events.”
Research supports Faafoi’s assertion; studies indicate every dollar invested in adaptation yields substantial economic benefits. By tackling these risks proactively, New Zealand stands to avoid the considerable costs associated with future climate-related disasters.
Meanwhile, across the globe, India's Union Budget for 2025-26 has raised eyebrows among experts who expected stronger support for climate adaptation measures. Finance Minister Nirmala Sitharaman presented the budget on February 1, which promised to accelerate India's green transition but failed to address the pressing need for climate adaptation—a concern particularly relevant for regions like the Sunderbans, known for their significant vulnerability to climate change impacts. Experts observed, “A strong adaptation strategy is a priority for the country, but this budget lacks substantial support.”
The 2025 budget saw increased funding for solar energy and fossil fuels, creating mixed signals about India’s commitment to climate policy. The environment, forest and climate change ministry received about Rs 3,412 crore—less than 2.5 percent rise over last year—which many felt was inadequate. Meanwhile, the coal ministry was allocated a hefty 160 percent increase, and the petroleum sector also saw substantial financing without corresponding increases for climate adaptation initiatives. This led to concerns about the clarity of the government's environmental strategy.
Sachchida Nand Tripathi, sustainability professor at IIT Kanpur, pointed out, “Focused initiatives to target air pollution, river rejuvenation for water security, and adaptation measures beyond agriculture would have strengthened India’s vision for a cleaner, greener future.” The only notable mention for adaptation came from the Pradhan Mantri Dhan-Dhaanya Krishi Yojana, targeting 100 agricultural districts, yet critics argue this is insufficient.
“Without real investment in climate adaptation, farmers will be left defenseless against increasingly erratic and extreme weather. The livelihoods of millions depend on this,” cautioned Harjeet Singh, climate activist and founder of Satat Sampada Climate Foundation, highlighting the urgent need for adaptation funding. This lack seems stark, especially after the Economic Survey—published just before the budget—that emphasized the necessity for climate adaptation finances. Ecologist Nilanjan Ghosh underscored, “The financial need for adaptation is particularly urgent for the Sunderbans, where the climate financial need is estimated to be three times greater than the region's GDP.”
Despite the call for stronger adaptation measures, the budget reflects greater emphasis on clean energy initiatives. The announcement of advanced frameworks for nuclear energy—aiming for 100 GW of non-fossil-based energy by 2047—has its advocates and skeptics. While some experts regard it as bold, concerns over safety, waste management, and security continue to overshadow nuclear expansion plans.
Experts agree on the fundamentals: India’s fiscal policies must align with its environmental vulnerabilities, and many believe adaptation strategies are imperative for safeguarding both rural communities and agricultural productivity. “Climate adaptation is not merely an option; it is imperative,” accusations of policy complacency point to the pressing need for decisive, transformative action against climatic threats rather than fragmented responses.
Debate is now set to continue as both New Zealand and India confront the realities of climate change. With differing strategies and challenges, the global community is watching closely to see how these nations develop their frameworks for climate resilience and adaptation moving forward. The stakes couldn't be higher for millions whose livelihoods rely upon government action—or the lack thereof—in response to the climate emergency.