Monday, May 27, 2024

$2 billion first-of-its-kind climate change fund announced by PM

Prime Minister, Chris Hipkins, has announced a first-of-its-kind $2 billion climate change fund alongside Minister of Energy and Resources Megan Woods and representatives of BlackRock in Auckland today.

The Prime Minister said the Government was working with BlackRock, one of the world’s largest investors in climate infrastructure and clean technology, to launch the fund with the goal of making New Zealand one of the first countries in the world to reach 100% renewable electricity.

“This is a first of its kind fund in the country that demonstrates the huge economic potential of New Zealand being a climate leader and our goal of generating 100% renewable electricity,” Mr Hipkins said.

“It proves again that we can grow our economy while we lower emissions. This fund is a massive opportunity for New Zealand innovators to develop and grow companies. 

“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, the Prime Minister said.

Prime Minister Chris Hipkins at today’s announcement.

“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.”

“This is a game changer for the clean tech sector and another example of the pragmatic and practical steps the Government is taking to accelerate climate action while growing our economy,” he said.

Minister Woods said the fund will accelerate New Zealand’s emissions reductions, with a particular focus on the path to 100% renewable electricity, while enabling businesses to access greater pools of capital to develop and grow.

“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 said.

“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 Minister said 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,” she said.

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