Earlier this year, Deloitte's launched their Turning Point report, which shows decisive action on climate change could add $64 billion to New Zealand's economy by 2050, while inadequate action could cost $4.4 billion over the same period.
"New Zealand's commitment to reducing emissions is world-leading in many ways, but there is still a huge opportunity to be a leader in economic growth and prosperity through rapid decarbonisation," said Corporate Finance Partner Jane Fraser-Jones.
Using Deloitte's bespoke D.CLIMATE model, the Turning Point report compares what could happen if the planet warms by 3°C by the end of the century against the economic opportunity if global warming is limited to as close to 1.5°C above pre-industrial levels as possible by 2050.
"Our modelling has explicitly taken into account the economic impacts of physical climate change, which has allowed us to quantify the impact climate change could have on New Zealand's economy," said Deloitte Access Economics Director Liza Van Der Merwe.
"We found the point at which the benefits of rapid decarbonisation outweigh the initial costs of decisive action on climate change – the turning point – could occur in 2036," said Fraser-Jones.
Transitioning the economy away from fossil fuels, reducing emissions and investing in technology will need a mindset shift from both government and the private sector.
"We need to see government and the private sector working together to improve emissions. There is already some great work, but much more is needed. If the pace of decarbonisation can be escalated, then New Zealand would be one of the first countries to reap the benefits," said Corporate Finance Partner David Morgan.
"Decarbonisation is not just an opportunity for New Zealand to do its part towards global emissions reductions; it's also an opportunity to set the country on a higher growth trajectory and see significant rewards for ourselves, the local economy and future generations of Kiwis," concluded Fraser-Jones.
Read the full Turning Point report here.
