$100 million investment fund launched to invest in reducing emissions
08 January 2019
NZ Government:
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,
https://treasury.govt.nz/greeninvestment.
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,
commercialisation and use.
Why is NZ Green Investment Finance Ltd being established as an
independent entity?
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 finance?
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 Ltd?
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
investments?
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.
--ENDS--
Source: New Zealand Government - www.beehive.govt.nz
Contact: N/A
External Links: https://treasury.govt.nz/greeninvestment
Recent news by: NZ Government