The government and BlackRock have announced a NZ$2bil fund that will provide access to greater pools of capital for New Zealand businesses to accelerate investment in green energy such as solar, wind, green hydrogen and battery storage. —Reuters
AUCKLAND: New Zealand’s government has partnered with US investment firm BlackRock Inc to supercharge its efforts to become one of the first countries in the world to reach 100% renewable electricity.
The government and BlackRock have announced a NZ$2bil fund that will provide access to greater pools of capital for New Zealand businesses to accelerate investment in green energy such as solar, wind, green hydrogen and battery storage.
“This is a first-of-its-kind fund in the country that demonstrates the huge economic potential of New Zealand being a climate leader,” Prime Minister Chris Hipkins said yesterday in Auckland.
“This fund is a massive opportunity for New Zealand innovators to develop and grow companies.”
New Zealand already generates more than 80% of its electricity from renewable sources such as hydroelectric dams, and it aspires to reach 100% by 2030.
That will require significant investment to replace fossil fuel-fired turbines with more wind, solar and geothermal plants, as well as improved transmission and storage.
BlackRock estimates the transition to 100% renewable electricity will require investments totalling NZ$42bil.
The new fund will provide a platform through which institutional investors can invest in that transition, it said in a statement.
The fund is the firm’s “largest single-country low-carbon transition investment initiative” to date, BlackRock chief executive Larry Fink said in a post on Linkedin.
Energy and Resources Minister Megan Woods said the so-called “New Zealand Net-Zero Fund” will look to attract investment from crown companies and entities, including superannuation funds, and private sector funds.
“This arrangement means we will get there faster, with opportunities for local investment in a low-emissions economy,” she said.
“That will be a significant selling point for New Zealand businesses as consumers demand more sustainable products and services.” — Bloomberg
