New Zealand, like other countries, needs to address climate change on two fronts simultaneously. Adapting to a hotter world while meeting its emissions reduction targets. New Zealand will need to become better prepared for more extreme weather that climate change will bring about. Councils will need new sources of revenue to fund the infrastructure that adaptation requires. Maintaining a comprehensive package of private insurance for climate-related losses with sharper premium price signals will also be essential. Developing a long-term energy strategy that weighs up all the main options for reducing emissions, while ensuring security of supply in a hotter world, is also crucial. New Zealand has made important strides to strengthen the policy framework for reducing GHG emissions. An important part of the framework is the New Zealand Emissions Trading Scheme (ETS). However, the ETS should be reviewed with a focus on the treatment of carbon removals through afforestation. New Zealand’s next overall emissions reduction plan should be underpinned by a rigorous and comprehensive cost-benefit comparison of the different emissions reduction options.