The Insurance Council of New Zealand (ICNZ) has renewed calls for a national response to climate change after a new study estimated at least $NZ14.1 billion ($13.4 billion) of local government assets are at risk from rising sea levels.

“This report should have everyone sitting up and listening,” CEO Tim Grafton said.

“This is not just an issue for local government. Central government has a key role to play too, and ultimately carries the economic, social and political risk if adapting to sea-level rise is not well managed.”

“Every dollar invested to reduce and adapt to risk now will save many more dollars in future post-disaster losses and help avoid social dislocation.”

The report, which was commissioned by Local Government New Zealand (LGNZ) and released today, focuses on council-owned infrastructure. It says a 0.5-metre rise in ocean levels would place $NZ2.7 billion ($2.6 billion) of roads, infrastructure, services and building assets at risk.

A worst-case scenario of a 3-metre water rise values the risk at $NZ14.1 billion.

The LGNZ says the findings underscore the need to deal with the climate risk urgently, as more than half of the population of New Zealand live within five kilometres of the coast.

“Many councils are already experiencing the impact of sea level rise," LGNZ President Dave Cull said today. “That’s why we need to urgently ramp up work on New Zealand’s adaptation framework.

“As a small country our efforts in the mitigation space, while necessary, are not going to meaningfully move the dial on global carbon emissions.

“But changes in the climate will definitely impact us, principally in the form of rising sea levels."

The ICNZ has long pushed for more mitigation measures. New Zealand is highly vulnerable to extreme weather, which scientists have predicted will intensify due to climate change.

Insured losses from extreme weather last year reached $NZ226.4 million ($215 million), the second-highest on record, and the ICNZ believes climate change had a lot to do with it.