A key deficiency in New Zealand's climate change framework is the absence of clear direction on how existing areas subject to climate-related risks are to be managed – including physical protections or retreat. The Climate Change Commission highlighted this in its Second National Climate Change Risk Assessment, released on 7 May 2026 (2026 NCCRA), noting that there is no legislative framework for managed retreat, no national approach to displacement or relocation, and limited clarity on long-term funding decisions. For further details see our earlier article here.

On 15 July 2026, the Climate Change Response Amendment Bill (Bill) was introduced. The Bill proposes amendments to the Climate Change Response Act 2002 that would require territorial authorities to prepare mandatory adaptation plans for areas identified as "priority locations" in regional spatial plans prepared under the proposed Planning Act.

We outline the proposed adaptation planning regime and consider key issues raised by the Bill, including how "priority locations" will be identified, uncertainty around who will bear the cost, and the absence of direction on the role of managed retreat in climate adaptation.

The proposed adaptation planning process

The Bill will require territorial authorities to prepare adaptation plans for areas identified as "priority locations” in regional spatial plans prepared under the Planning Act.

Adaptation plans are intended to provide strategic direction and coordinate actions and investment to manage climate-related natural hazard risk over the long term, assisting local authorities, infrastructure providers, communities and landowners to understand the risks and the pathway for addressing them.

Each adaptation plan must have a minimum planning horizon of 30 years and include:

• the territorial authority's objectives and intended outcomes for managing climate-related natural hazard risk;
• the response options proposed to address identified risks, including the reasons for selecting those options;
• triggers or thresholds that will determine when particular response measures should be implemented;
• indicative, high-level cost estimates and how those costs are intended to be funded;
• an implementation programme;
• monitoring, review and reporting arrangements; and
• any additional content requirements prescribed by regulations.

The Bill distinguishes between two categories of priority location. For Group 1 locations, plan preparation must commence within one year of adoption of the relevant regional spatial plan and be completed within five years. For Group 2 locations, preparation must commence within six years and be completed within ten years.

Adaptation plans must follow a public consultation process. Where a priority location spans more than one territorial authority, the relevant authorities may prepare separate components or a joint plan. Each plan must be reviewed before the tenth anniversary of its adoption and at least every ten years thereafter, with each review completed within two years.

What the Bill does not address: Remaining gaps

While the Bill introduces an important planning framework, it leaves several critical questions unresolved.

• Criteria for identifying priority locations: The Bill defines a "priority location" simply as an area identified as such in a regional spatial plan, providing no criteria, methodology or minimum standards for determining which locations qualify. The definition is circular; there are no standards for identifying priority locations within the Bill itself, and these will need to be established through the regional spatial planning process under the proposed Planning Act. We note that there was no detailed discussion on this point in the Select Committee Report for the Planning Bill released 20 July 2026. Without nationally consistent criteria, communities facing similar levels of climate risk could be treated differently depending on regional decision-makers’ assessment of risk.
• Funding: The unresolved issue: The 2026 NCCRA identified funding as one of the major barriers to effective climate adaptation, yet the Bill establishes no dedicated funding mechanism, cost-sharing framework, or government contribution model. While adaptation plans must include indicative cost estimates and explain how costs will be met, this improves transparency without resolving who will ultimately bear those costs. The absence of direction on cost allocation between central government, local government, ratepayers and affected landowners risks unfunded mandates, particularly for smaller councils with significant climate exposure. A related question is the potential impact on insurance availability and value of properties within priority locations.
• Managed retreat: Still no legislative framework: While adaptation plans must identify response options, triggers and implementation pathways, the Bill provides no mechanism for requiring, facilitating or funding the relocation of communities and assets from areas facing intolerable risk. This was identified as a key gap in the 2026 NCCRA and remains unresolved. Although 30 years is a minimum requirement, it is clear that the planning horizon is not sufficient, given the lifespan of buildings and infrastructure and the continued intensification of climate related risks over time. Focusing on areas affected within the next 30 years only may lead to continued development in high-risk areas.

Conclusion 

The proposed introduction of a requirement for adaptation plans for priority areas is a significant step forward.

However, the Bill defers the most difficult policy questions of how priority locations should be identified, who will fund adaptation, and how managed retreat will operate to future regulations and regional spatial plans.

The Bill is expected to be referred to a select committee, though it may not progress before the November 2026 general election. Ultimately, whether the Bill delivers meaningful climate resilience will depend on the form and implementation of adaptation planning through the preparation and implementation of regional spatial plans.

Please reach out to one of our experts if you have any questions or would like more information on climate adaptation and management.

This article was co-authored by Aimee Harris (Solicitor), in our Environment team.