Auckland and the green economy

Auckland’s transition to a green economy is part of a broader regenerative approach outlined in Te Tāruke-ā-Tāwhiri: Auckland’s Climate Plan. This plan is a roadmap with interconnected transformational actions that help create a resilient, low carbon economy, guided by our kaitiaki values, that supports Aucklanders to thrive. It calls for a fundamental shift in how we grow, move, build, and care for people, moving beyond short-term growth models to long-term resilience within planetary limits.  

Te Tāruke-ā-Tāwhiri is supported by aligned strategies and pathways such as the Urban Ngahere Strategy, the Transport Emissions Reduction Pathway, and the Thriving Communities Strategy.

While public investment can catalyse change, delivering this vision requires coordinated collaboration. Partnering with iwi and hapū, communities, and the private sector is essential for an orderly and equitable transition.

This deep dive highlights how targeted public investment is enabling progress and how continued investment can shape a thriving, climate-resilient Auckland.

Building momentum

Transport

Auckland is a relatively low-density city with a car-centric transport network, contributing to negative social, economic and environmental outcomes, including congestion, pollution, waste and inequitable connectivity.⁵ As a result, road transport is Auckland’s largest source of emissions, while also being susceptible to extreme weather events.

Meeting future transport needs requires a fundamental shift: how and where we live, how we travel and power our journeys, how we move freight, and how we grow as a region.

Auckland’s Transport is beginning its transition, guided by a vision for a low carbon, resilient, safe and equitable transport system.⁶ The Climate Action Transport Targeted Rate combined with government co-funding and fare revenue has provided $1.045 billion over 10 years for initiatives such as new bus routes, electric and hydrogen buses, low-emission ferries, and active transport infrastructure.⁷

Climate change is already impacting the network. In 2023/24, $117 million was spent on network repairs.⁸ Auckland Council Group is also developing risk mitigation strategies, including AI-based tools to assess landslide risk.

While more work is needed to fully integrate climate considerations into transport investment, Auckland’s transition is underway.

Energy

As New Zealand’s largest city, Auckland’s electricity demand is growing. The transition to low-carbon is accelerating the shift to electric equipment, placing additional load on the existing network.

Due to the region’s current reliance on fossil fuels, particularly in industrial settings, the increased demand will be significant. Beyond electricity, Auckland’s energy emissions are largely caused by primary fuel combustion from gas, coal and liquid petroleum gas (LPG)⁹ in industrial processes or commercial buildings. Close to 97 per cent of the region’s industrial heat requirements are reliant on fossil fuels, and the insecurity of gas supply in New Zealand risks site closures, escalating costs and operational constraints.¹⁰ This risk is driving decisions about whether to switch energy sources earlier than planned.

In 2023, Auckland based, New Zealand Steel partnered with the Government to install an electric arc furnace, cutting emissions by up to 1 million tonnes annually by replacing coal with electricity.¹¹ Beyond emissions reduction, the technology offers energy flexibility, allowing operations to adjust during peak demand to take advantage of New Zealand’s renewable electricity, supporting grid stability and lowering costs. This kind of flexibility is a key advantage for industrial sectors transitioning to renewables without compromising productivity.¹²

While New Zealand’s renewable electricity generation of 80-85 per cent (in a typical year)¹³ largely occurs outside Auckland, there is an opportunity to accelerate residential and commercial solar to boost resilience. New Zealand is “one of the first countries where the electrification of homes and vehicles can deliver both cost of living savings and emissions reduction simultaneously.”¹⁴ A key part of this electrification is rooftop solar, which has been identified as the source of energy with the lowest cost.¹⁵ A resilient energy system in a changing climate and economy will depend on a multi-pronged approach, combining rooftop solar, energy efficiency, and smart demand management.

Small and medium enterprise in Auckland

SMEs make up 98.7% of Auckland’s businesses and are vital to the region’s economy but they face growing climate risks such as extreme weather events. Supporting SMEs to understand, prepare for, and respond to climate change is critical. Adaptation isn’t just about managing risk; it’s about building resilience and seizing new opportunities. Proactive businesses can cut costs, strengthen supply chains, attract investment, and gain a competitive edge in a low-carbon economy.

Tools like NIWA’s Climate Change Adaptation Toolbox and ClimateWise by Climate Connect Aotearoa are available, but for many SMEs, the real challenge isn’t access, it’s having the time and resources to use them effectively in planning.

Going forward

Decisions made today will shape the wellbeing and prosperity of current and future generations. If Auckland continues to build momentum by taking decisive climate action, the benefits could be substantial. Modelling suggests that Auckland could reach a ‘turning point’ in 2037 where the cost to transition is outweighed by the benefits.¹⁶ For example, Auckland could gain around 19,000 additional jobs in sectors such as energy, services, retail, and tourism by 2050. To ensure this is a just transition, we must establish equitable and inclusive pathways to good green jobs.¹⁷ Creating these pathways will require a system-wide approach across government, industry, education and communities, to comprehensively address current barriers to skills development. Auckland is in the early stages of understanding the steps required.

This transition presents an opportunity to collaborate, innovate, and adopt new ways of doing business. Auckland is well-positioned to grow its clean tech ecosystem, supported by initiatives such as Callaghan Innovation Startup and Founder Support¹⁸ that foster local solutions, investment, and global competitiveness by accelerating business development for early-stage ventures.

Investment will be essential. With growing interest from global and local investors in low-carbon, resilient economies, Auckland’s ability to attract this capital will be key to advancing the green economy. There are a number of notable examples that illustrate this significant commitment from investors in the green economy space:

• In August 2023, the Government partnered with BlackRock to launch a NZ$2 billion fund aimed at enhancing New Zealand’s climate infrastructure through projects like battery storage and green hydrogen.¹⁹

• The International Energy Agency predicts clean energy spending will grow from $1.8 trillion in 2023 to $4.5 trillion annually by the early 2030s.²⁰

In 2021, Brookfield Asset Management committed $7 billion to global clean energy investments.²¹ The asset manager is already active in New Zealand through a long-term joint venture to develop the Ruakura Superhub in Hamilton.²²