Monday, April 22, 2024

Budget 2023 to ramp up low-emission technologies uptake

Budget 2023 will accelerate the uptake of low-emissions technologies across Aotearoa and help create new jobs and opportunities, Climate Change Minister James Shaw announced today.

“Pioneering green investor, NZGIF, will be provided with an additional $300 million to invest in solutions to stimulate clean, green investment into low carbon companies and projects, and mobilise private capital,” said Mr Shaw.

“Since its establishment in 2019 New Zealand Green Investment Finance has been a major player in the work to finance and incentivise climate innovation and drive down emissions.

“This investment takes NZGIF’s pool of capital to $700 million, making it one of the largest direct investors in New Zealand focused on climate change.”

The Minister said New Zealand’s challenge was not just about financing the climate transition, but the maturity of the markets that are expected to provide that finance.

“Public funding alone will not finance the scale of investment that’s needed, with the urgency required, to address the climate crisis.”

Over the last four years NZGIF has helped accelerate our transition to a low carbon future through a broad range of investments, including in electric vehicle charging infrastructure, solar power in schools, and electric buses, showcasing a tangible outcome from the Government’s record investment in climate action.”

The capital investment will support existing and future projects, including transport, process heat, infrastructure and early-stage companies. It will also open up new parts of the market and enable NZGIF to attract larger sums of private capital, Mr Shaw said.

“As at June 2022, the total estimated lifetime emissions reductions of its investments was 580,000 to 710,000 tonnes of CO2e. That is equivalent to 480,000 to 590,000 homes energy use for one year.”

“We know we can’t plant our way out of the climate crisis. We have to stop putting pollution into the atmosphere that causes climate change. The great thing about NZGIF is that it invests capital into companies, technologies, and projects that focus on abating emissions rather than offsetting.

“In addition to generating a rate of return on investments, the capital is recycled and can be invested into other projects. It’s a win win.

NZGIF shows that it is possible to deliver low carbon benefits alongside investment returns – and that capital coupled with purpose makes economic sense.

“It is a Government and climate success story that not enough people know about”, Minister Shaw said.

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