$100 million Green investment fund launched
Rt Hon Jacinda Ardern Prime Minister Hon James Shaw Minister for Climate Change delivery
5 December 2018 PĀNUI PĀPĀHO MEDIA STATEMENT
$100 million Green investment fund launched to invest in reducing emissions
Business and the Government will jointly tackle climate change with the launch of New Zealand Green Investment Finance Ltd; a $100 million fund to reduce New Zealand’s greenhouse gas emissions, Prime Minister, Jacinda Ardern, and Climate Change Minister, James Shaw, announced today.
The fund is a central plank in the Government’s plan to transition to a clean, green, carbon-neutral New Zealand and it delivers on a Green Party Confidence and Supply Agreement commitment.
“Tackling climate change is a priority for this Government and business involvement is crucial to our success. No one can opt out of the impacts of climate change. This fund helps business to opt in to the solution,” Jacinda Arden said. “Lowering emissions will require innovation and action from all sectors.
“This fund means the Government is bringing cash and know-how to the table to partner with business to deliver a clean, green future for everyone.
“This new investment fund is an important component of New Zealand’s plan to build a clean, sustainable, low-carbon economy that has both lower emissions and profitable enterprises,” Jacinda Ardern said.
“New Zealand Green Investment Finance will be a commercially focused investment company which will work to invest with business to reduce emissions while making a profit,” said James Shaw.
“The Government’s $100 million start-up capital injection is intended to stimulate new private sector investment in low-emissions industries; with returns over subsequent years expected to pay back the Government’s investment and see NZ Green Investment Finance stand on its own commercial footing.
“More and more investment dollars are looking for clean, sustainable ventures to invest in. Establishing this fund positions New Zealand to attract its share of that investment capital.
“I want to thank Cecilia Tarrant for accepting the role of Chair of NZ Green Investment Finance Limited. We are extremely fortunate to have someone of Cecilia’s calibre in this important leadership role.
“Board Director, David Woods, brings a wealth of international banking experience to the company, as well as his more recent experience leading work with the social impact investor, Oikocredit International.
“We are also incredibly grateful to have Sir Rob Fenwick on board as Ambassador for this project. Sir Rob’s background and expertise in business sustainability makes him a fantastic fit for what NZ Green Investment Finance Limited is about.
“New Zealand faces a big job in upgrading our economy and infrastructure. New Zealand Green Investment Finance will help deliver financial backing to help ensure that the upgrade is fit for purpose,” Mr Shaw says.
More details about NZ Green Investment Finance Ltd are available here.
New Zealand Green Investment Finance Ltd FAQs: What will NZ Green Investment Finance Ltd do?
NZGIF will bring financial and technical emission reduction expertise together into one organisation with the sole aim of increasing investment into low-emissions projects.
It will act as a bridge between investors and key industries and sectors, and identify low emissions projects ready for upscaling, commercialization and use.
Why is NZ Green Investment Finance Ltd
being established as an independent
NZ Green Investment Finance Ltd is being established as a company under Schedule 4A of the Public Finance Act 1989 so that it can operate independently from Government and work in a market responsive and commercially focused way.
Other Schedule 4A companies operating in NZ
include: • City Rail Link Limited •
Crown Asset Management Limited • Crown
Infrastructure Partners Limited • Education
Payroll Limited • Health Benefits Limited •
Ōtākaro Limited • Predator Free 2050 Limited •
Research and Education Advanced Network New Zealand Limited
• Southern Response Earthquake Services Limited
• Tāmaki Redevelopment Company Limited •
The Network for Learning Limited What will NZGIF
NZGreen Investment Finance Ltd will have the flexibility and mandate to focus on sectors and industries where the greatest impact on emissions reductions can be made.
Potential opportunities include things like electric vehicles, manufacturing processes, energy efficient commercial buildings and low-emissions farming practices.
With New Zealand’s electricity supply already using around 85 per cent renewable sources, NZGIF will focus on tackling other sectors. However, there may be opportunities to back smaller scale renewable energy projects; where they are smart and can contribute to making our electricity supply more sustainable as demand for electricity rises.
As a commercial entity, NZGIF will likely focus on solutions that already exist; for example, knowledge and technology being used internationally where there is scope for use in New Zealand.
The Budget 2018
announcement referred to the NZ Green Investment Fund. Why
has it changed to Green Investment Finance
Use of the word ‘Finance’ is a more accurate reflection of the purpose and market-leading role NZGIF will play.
Why isn’t the
private sector financing these sorts of
New investment markets take time to develop and investors rely on good information to assess viability and risk.
They also need financial products which are structured in a way that fits the market.
As a result, there is limited activity initiating and funding low emissions or ‘green’ investment deals here.
The establishment of NZ Green Investment Finance Limited, which will focus on accelerating private sector investment into emissions lowering projects, will fill this gap.