Saturday, June 15, 2024

Big green finance pilot takes off

The Government has announced an innovative green private finance pilot to provide financial backing for large-scale decarbonisation projects.

The scheme, through the Energy Efficiency Conservation Authority (EECA), will work with nine participating financiers, Minister of Energy and Resources, Megan Woods said today.

“This pilot will further support initiatives focussed on climate impact and emissions reduction,” the Minister said.

“It will help link up large businesses wanting to decarbonise with green financial products, services and expertise, and streamline the process of private funding being made available.”

The pilot is aligned with the government’s expanded Government Investment in Decarbonising Industry (GIDI) Fund administered by EECA. EECA is inviting applicants with large decarbonisation projects to apply now for contestable co-funding to help reduce the carbon emissions from their industrial processes.

The support offered by each financier to GIDI applicants will depend on the suite of sustainable products and services they offer – this may include discounted lending rates, advisory services, and expertise to support the implementation of complex energy projects.

 “We know we need more tools to help us achieve our climate change goals. Green finance initiatives can help fill the investment gap businesses face when trying to do the right thing. This will benefit all New Zealanders,” Ms Woods said.

“We are thrilled to have such excellent support for the decarbonisation of New Zealand business from participating financiers. Joint problems require joint solutions, and this pilot is a great example of that.”

The participating financial providers include:

  • ANZ
  • ASB
  • BNZ
  • Kiwibank
  • NZGIF
  • Purpose Capital
  • Simply Energy
  • Solar Bay
  • Westpac

EECA will not have a direct role in negotiating the relationship between the financiers and prospective GIDI applicants but will support information sharing, the Minister said.

Prospective GIDI applicants can find out more about the finance on offer on EECA’s website – GIDI Private Finance Pilot.

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