Prime Minister, Christopher Luxon, today announced New Zealand’s support for a new clean energy initiative, with a NZ$41million contribution in climate finance to the Asian Development Bank (ADB)-led Energy Transition Mechanism (ETM).
The Prime Minister and Climate Change Minister, Simon Watts, announced the initiative in Manila today.
“The ETM is a transformative initiative that uses public and private finance to accelerate the retirement and repurposing of fossil fuel plants and replace them with cleaner, renewable sources of energy,” says Mr Luxon.
“Urgent action to significantly reduce greenhouse gas emissions is needed to get on track for 1.5°C and minimise the worst impacts of climate change.”
The Prime Minister said the announcement responds to a call for action, and represents a significant investment in supporting New Zealand’s partners in South East Asia to accelerate action on shared priorities.
“New Zealand’s contribution to the ETM supports South East Asia’s ambition for an accelerated transition from fossil fuels to clean energy, while ensuring this transformation is fair and equitable,” he said.
Mr Watts said New Zealand’s investment will have an initial focus on Indonesia, the Philippines and Viet Nam and will mobilise significant public and private finance needed for clean energy transition, including through supporting the Just Energy Transition Partnerships being led by the Group of Seven partners.
“In implementing the ETM, the ADB is taking a considered, methodical and comprehensive approach to addressing the hugely complex – but critical – challenge of just energy transition, and we welcome their leadership, collaboration and ambition,” says Mr Watts.
The ETM contribution complements New Zealand’s extensive programme of development support for renewable energy in South East Asia; including a long history of providing technical assistance and skills and capacity building support for geothermal and renewable energy development in the region.
New Zealand is the third financing partner to join a trust fund for the ETM, after Japan and Germany.
