Global experiences on managing disaster risk - rethinking New Zealand's policy approach

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Global experiences on managing disaster risk - rethinking New Zealand's policy approach Elizabeth Longworth 19 June 2017 Motu Public Policy Seminar 1

Managing disaster risk in NZ Exposure to natural hazards What it costs us Altering our focus to meet a critical challenge Ensuring risk-informed investment Strengthening our risk governance 2

Refocus How to manage the risk? (and not just the disaster) 3

Need to change paradigm of disasters as events which emphasises hazard assessment, preparedness, emergency management and recovery leads to under-investment in risk reduction 4

Policy objective Reduce risk of disasters ie: prevention 5

Disaster risk (as defined by UN) The potential loss of life, injury, or destroyed or damaged assets which could occur to a system, society, or a community in a specified period of time, determined probabilistically as a function of hazard, exposure, vulnerability and capacity 6

Risk arises from Presence of hazards Exposure of population/assets to hazards Vulnerability of population/assets to hazards 7

Sendai Framework 2015 Goal: prevent new and reduce existing disaster risk through measures that prevent and reduce hazard exposure and vulnerability to disaster increase preparedness for response and recovery strengthen resilience 8

Sendai Framework Priorities 1. Understanding disaster risk 2. Strengthening disaster risk governance to manage DR 3. Investing in DRR for resilience 4. Enhancing preparedness for response and recovery 9

DRM means addressing drivers of risk by reducing existing levels of risk ( corrective ) avoiding risk creation ( prospective ) managing residual risk ( compensatory ) 10

What is the (public and private) cost of NZ s disaster loss and damage? 11

Global losses = US$314B pa (UNISDR 2015) Plus? Plus? from earthquake, tsunami, cyclone, flood - in built environment drought, wildfire, landslides, etc losses in rural/agricultural sector 12

Global impact on wellbeing measured by consumption loss = US$520B pa (World Bank) 13

42 million Human Life Years lost annually (Prof. Ilan Noy - GAR15) 14

Canterbury earthquakes 2010-2011 185 lives lost NZ$40B to rebuild 6+ years disruption and stress 15

Leaky home industrial disaster NZ$11B (2009 PriceWaterhouseCooper) 16

Kaikoura earthquakes (2016) NZ$3-10B direct costs +$? reinstatement of utilities/public services +$? damaged road/rail interrupting supply +$? small business and farm losses 17

Flood and Drought Extensive risks - ie smaller-scale, localised, frequent events multiply $$s 18

What gets measured, gets managed 19

Sendai Priorities and Targets New global indicators (output based) Obligation on NZ to report Disaggregated and systematic reporting Redesign national data collection and reporting systems 20

Country reporting on global indicators [UN Sendai Framework] A. Mortality B. Affected people C. Direct economic loss re GDP D. Critical infrastructure and essential services E. National DRR strategies F. Cooperation for developing countries G. Multi-hazard early warning systems, access to risk information, assessments 21

Understanding risk requires Risk assessment Access to risk information National database Standardised methodology, comparable data Enable risk modelling of future losses [Priority 1, Sendai Framework] 22

Need a national disaster loss database Integrated, comparable Systematic collection Neutral data host Multi-hazard, multi-sector Leverage international models Enables risk modelling of future losses 23

Need risk-informed investment, because Capital flowing into hazard-prone areas Exposed economic assets Mis-pricing of risk - risk generating behaviour, accumulating risks Government incentives to attract investment Disaster risk missing from forecasts, indices 24

Business as a full partner Cities 80% private capital Infrastructure/utilities interdependency Business interruption costs, impact on global supply chains Make DRR visible in the boardroom Co-benefits of increasing resilience, competitiveness, and sustainability 25

Strengthening disaster risk governance vision principles policy framework national strategy local plans legislative coherence whole-of-government mainstreaming multi-hazard, multisector 26

Strengthening disaster risk governance visibility compliance reporting oversight public engagement coordination multi-stakeholder financing NZ-inc target leadership [Priority 1, Sendai Framework] 27

Opportunity = anticipatory risk approach to: reduce disaster losses develop more sustainably mitigate and adapt to climate change and build resilience 28