The Government is looking to bar development on land exposed to high levels of climate risk.
It is consulting on a draft National Policy Statement on natural hazard decision-making that would prevent councils from approving construction on land with a high risk of natural hazards.
The draft policy would classify areas from high to low risk based on the likelihood and consequence of a natural hazard event, and then assess the tolerance to a natural hazard event in relation to the proposed new development.
In a high-risk area, new development will be avoided unless the level of risk can be reduced to at least a "tolerable level", the report said.
The policy would also require Māori to be consulted early in the process of risk determinations on Māori land.
"Severe weather events are becoming more frequent due to climate change. Building new developments like houses, office buildings, shops, roads and schools in areas at high risk from natural hazards increases risk to human life, community wellbeing, property, infrastructure, and may lead to adverse effects on the environment," the report said.
"It also exposes landowners, councils, the Crown and New Zealanders in general to increased social and economic costs. This issue was highlighted by the impacts of the severe weather events in 2023."
Following the Auckland Anniversary Floods and Cyclone Gabrielle, the issue of managed retreat became a hot topic as some affected areas were not deemed safe to rebuild in.
The process of moving homes, communities, roads and infrastructure away from a more damaging climate is called managed retreat.
Appearing on AM, New Zealand Planning Institute principal policy advisor Emily Grace said, if implemented, the current draft proposal would not affect existing properties.
"It is designed to target new development so it won't have an impact on buildings and properties and houses that are already established," Grace told co-host Laura Tupou.
She said it is not yet known how much land in New Zealand would be classified as high risk.
"We do have a lot of towns and cities that end up being located next to rivers and on the coast so it is an issue for New Zealand because we do have a lot of development in those areas but they're not all high risk," she said. "This is particularly targeted at the high end of risk."
Consultation on the draft document is open until November 13.
