Climate fund to back 100% renewable electricity

A $2 billion fund has the goal of making New Zealand one of the first countries in the world to reach 100% renewable electricity.

The Government has worked with BlackRock – a large investor in climate infrastructure and clean technology – on the New Zealand net zero fund which aims to accelerate green energy options like solar, wind, green hydrogen and battery storage.

That will help fuel a low emissions economy and provide access to greater pools of capital for New Zealand businesses, supporting the creation of highly skilled local jobs, says the Government.

Prime minister Chris Hipkins announced the first of its kind New Zealand net zero fund alongside energy and resources minister Megan Woods and BlackRock representatives in Auckland on August 8.

“This fund is a massive opportunity for New Zealand innovators to develop and grow companies,” says Hipkins.

 “I’m absolutely stoked about what this means for Kiwi ingenuity in renewable energy; it shows that our ambitious climate targets have the world’s attention, and that they are good for the climate, good for the economy, and will help create highly skilled jobs.

 “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 explains.

“Cyclone Gabrielle and the Auckland floods were reminders we must speed up our own climate action, and the fund will super-charge investments in clean technology that might otherwise not have happened.”

Woods says the fund will accelerate New Zealand’s emissions reduction.

“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,” she adds.

“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.”

 Woods says the 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.

BlackRock chairman and chief executive Larry Fink says on LinkedIn that New Zealand’s fund is the largest single-country low-carbon transition investment initiative BlackRock has created and that it bodes well for COP28 at the end of this year when the world is looking at co-operation between the private and public sectors on such issues.