The Government will collaborate with an American multinational investment company to create a $2 billion "first of its kind" climate infrastructure fund aimed at helping New Zealand become one of the first countries in the world to reach 100% renewable energy.
Prime Minister Chris Hipkins made the announcement in Auckland today. It will be called the New Zealand net zero fund.
The Government and BlackRock will work together on the fund, which a Government statement said would accelerate green energy options like solar, wind, green hydrogen and battery storage to fuel a low emissions economy.
It's aimed at helping New Zealand become one of the first countries in the world to reach 100% renewable energy. (Source: 1News)
"It will be BlackRock's largest single-nation decarbonisation investment to date," Hipkins said.
"This investment will be a boon for Kiwi businesses and it will make New Zealand a hub for renewable tech expertise.
"The fund will mean we can create renewables IP right here, which can be used at home and commercialised for the benefit of the world.
"Today is a watershed moment in our transition to 100% renewable electricity generation and our goal of net zero emissions by 2050."
Hipkins said it proved New Zealand could grow its economy while lowering emissions.
“This fund is a massive opportunity for New Zealand innovators to develop and grow companies.
“With countries around the world experiencing the impacts of climate change on a daily basis, it’s never been more urgent to invest in technology that will help address the climate crisis, and New Zealand is well positioned to be a home for that investment."
He said Cyclone Gabrielle and the Auckland floods were reminders to speed up climate action, and the fund would "super-charge" investments in clean technology that might otherwise not happen.
Energy and Resources Minister Megan Woods said the fund would accelerate New Zealand's emissions reductions, and "go further, and faster".
"Today is a day where we show how we can grow our economy and slash our emissions."
“With record levels of renewable electricity generation in recent years, New Zealand is well-positioned to be one of the first countries in the world to deliver a fully renewable electricity system.
“Investors in the green economy can see our potential and recognise our commitment to climate commitments and goals, such as our banning of further offshore oil and gas exploration.
“New Zealand is now an investment magnet for capital that will unlock technology such as battery storage, wind and solar generation, green hydrogen production and more electric vehicle chargers across New Zealand.
“We’ve already making significant progress on New Zealand’s decarbonisation transition, partnering with the likes of NZ Steel and Fonterra to reduce emissions while retaining jobs here in New Zealand.
“The New Zealand net zero fund will look to crowd in investment from Crown companies and entities, including superannuation funds, and private sector funds to accelerate New Zealand’s transition to 100% renewable electricity.
“This arrangement means we will get there faster, with opportunities for local investment in a low emissions economy. That will be a significant selling point for New Zealand businesses as consumers demand more sustainable products and services.
“The projects funded through investment in the New Zealand net zero fund will not only decarbonise our energy use, but will also create highly-skilled jobs here in New Zealand, and opportunities to grow New Zealand companies."
BlackRock head of Australia and New Zealand Andrew Landman said it was the first time the company had done a "country-specific initiative like this".
"Why New Zealand?
"The level of innovation is far greater in this country than we see elsewhere, in clean tech.
"We firmly believe New Zealand could be the first country in the world to achieve the 100% [renewable energy] target."
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