7. Impacts on people, society and the economy

This section examines how changes in the environment are impacting our lives, in three areas.
The first part of this section looks at how our health and quality of life are deeply rooted in the environment. A healthy environment provides clean air, water, food and spaces for recreation, all of which support physical and mental well-being. Conversely, environmental degradation – such as pollution, biodiversity loss and climate change – can harm health. It contributes to respiratory illnesses, heat-related conditions, waterborne diseases, and mental health challenges stemming from the loss of natural spaces or increased environmental stresses.
The second part looks at people’s connection to place, which is also intertwined with nature. The environment shapes cultural values, traditions and a sense of identity. It fosters strong bonds between communities and the landscapes they inhabit. Healthy ecosystems sustain these connections, supporting cultural practices and community resilience.
The third part looks at how our homes and livelihoods depend on the services provided by nature. Ecosystems play a critical role in food production, water availability and energy generation, creating the foundation for social and economic stability. However, challenges such as biodiversity loss and climate change (including severe weather events) pose risks to our homes and jobs and to the broader natural and built environment that supports them.
Addressing these interconnected challenges is vital for our lives and the resilience of the environment.
Access to nutritious food, fresh air and safe drinking water is fundamental to our health and quality of life. These essential needs depend on a healthy environment, including fertile soil, clean air and unpolluted water. Degradation of the environment, climate change and extreme weather events pose significant threats to human health, increasing risks such as food insecurity, poor air quality and contaminated water.
In contrast, a healthy environment enhances the resilience of food systems, supports natural air filtration and ensures water infrastructure can withstand the challenges of climate change and extreme weather.
Our health and vulnerability are also shaped by who we are and where we live. Urban areas, where many of us live, benefit from well-functioning ecosystems that can provide critical services. However, environmental drivers and pressures increasingly threaten these ecosystems. Emerging contaminants, such as microplastics, add another layer of risk to human health, infiltrating food, air and water, though their full impact remains poorly understood.
This subsection focuses on two aspects of human health: access to healthy food and clean air; and how climate change amplifies health risks. Both aspects highlight the profound connection between environmental health and overall quality of life.
The natural beauty of our environment, including mountains, rivers and coasts, is central to our culture and national identity.
As individuals, we each connect to the environment in our own way and for different reasons – including walking, swimming and gathering food. As communities, we also have different ways of enjoying our local environment – spending time in city parks, along rivers or at beaches. As the environment changes, these connections change, whether those changes are sudden and we notice them, or are more gradual and not immediately obvious.
These changes require knowledge adaptation, and affect mātauranga Māori and associated practices such as traditional food-gathering (mahinga kai) and using plant medicines (rongoā rākau). We also have intergenerational connections to the environment. Just as the way that those before us lived with the landscape influences the current state of the environment and how it affects society today, so will future generations be affected by the way that we live with the environment today.
The environment provides the foundation for our homes, infrastructure and livelihoods. It offers the resources and stability needed for a thriving society. However, environmental change, and in particular climate change, poses serious threats to homes, infrastructure and livelihoods. Extreme weather events, such as heavy rainfall, storms and wildfires, damage housing and infrastructure, particularly in flood-prone and drought-affected areas. Rising sea levels also threaten coastal communities through erosion and inundation, demanding costly repairs and long-term adaptation. Hydropower, which generates about 60 percent of New Zealand’s electricity, is vulnerable to changing rainfall patterns and reduced snowmelt, reducing energy reliability (MBIE, 2023; MfE, 2024g).
Although some parts of New Zealand’s economy, such as agriculture and forestry, are more visibly dependent on the environment, every sector relies on natural resources and ecosystems to some extent (see Our land 2024). In the year ended June 2024, primary industries contributed $53.3 billion to exports (MPI, 2024a). In the year ended March 2024, international tourism’s contribution to total exports was $16.9 billion (Stats NZ, 2025).
Many industries – including agriculture, horticulture, forestry, tourism and fisheries – face risks from climate change (Lawrence et al, 2020). Short-term shocks, such as disrupted crop yields and damage to marine ecosystems, can require timely interventions to stabilise food production and protect vulnerable livelihoods. However, addressing the broader long-term impacts of climate change calls for more adaptive and sustainable strategies. The cumulative stress on ecosystems and decline of iconic landscapes necessitate a range of responses, including nature-based solutions. Restoring and enhancing wetlands, for instance, can provide resilient and cost-effective protection for homes, livelihoods and ecosystems. These approaches build adaptive capacity, ensuring ecosystems and communities can better withstand future climate challenges (Hobbie & Grimm, 2020).
7. Impacts on people, society and the economy
April 2025
© Ministry for the Environment