The $64 billion climate proposition

30 Mar 2023
24 min

The report ‘Aotearoa New Zealand’s Turning Point’ was released by Deloitte New Zealand in March 2023.

The report highlights how decisive action on climate change, now, could change New Zealand’s future for the better by generating additional economic growth, while avoiding the worst impacts of climate change. Decisive action could deliver $64 billion of additional economic gain to New Zealand’s economy by 2050 if warming is limited to 1.5⁰C.

New Zealand has the opportunity to be a leader in economic growth and prosperity through rapid decarbonisation. Deloitte NZ has modelled what the country’s economic future could look like with decisive action. This modelling shows that New Zealand’s turning point – the point at which the initial costs of decisive action on climate change are outweighed by the benefits of rapid decarbonisation – could occur in 2036.

After 2036, the transition to a low-carbon economy results in stronger, more durable and more sustainable economic growth, but these benefits are not guaranteed.

To achieve these potential gains, a change in mindset is required. Clear and consistent policy direction on climate change and support from both government and the private sector to transition New Zealand’s economy to a low-carbon one are crucial.

If there is inadequate action on climate change and the planet warms by 3⁰C by the end of the century, New Zealand’s economy could lose $4.4 billion of GDP by 2050, compared to projections that do not take into account the effects of climate change. These losses get exponentially worse beyond 2050.

This report helps to redefine the debate around climate action. It shows that efforts to limit climate change, and achieve net zero emissions by 2050, are opportunities for growth instead of costs.

Deloitte is a member of the Chapter Zero New Zealand Working Group.

Read the Turning Point report

Related Resources