The Government has announced the New Zealand Green Investment Finance (NZGIF) is set to wind down its existing portfolio.
Climate Change Minister, Simon Watts said almost $400 million had been invested with very limited results and New Zealand had more than 20 other government funds operating with similar objectives to the NZGIF.
“Alongside this, the market for low emission investments has grown, there are more funding and financing products, and we have a more robust Emissions Trading Scheme, reducing the need for government involvement,” said Mr Watts.
“This Government is serious about climate change, that’s why we have committed to doubling renewable energy, investing in technology to lower emissions while boosting productivity, and cutting barriers to green investment.
“We will prioritise actions that have the greatest impact on emissions and growth and will provide real value for money. In the current economic environment New Zealanders want assurance that taxpayer money is being well spent and delivering results. We believe NZGIF is no longer aligned to that vision.”
The Minister said the transition will be carried out in a structured and responsible manner, ensuring that all stakeholders are kept informed.
NZGIF acting Chair, David Woods said, “We will be very focused on working to help our people, investee companies and co-investors understand how NZGIF will implement the changes”.
NZGIF will become a smaller organisation, which will regrettably involve the loss of some staff, said Mr Woods.
Within 90 days, NZGIF will develop a plan for Ministers outlining how changes at the company will be implemented.
