The government of New Zealand, in collaboration with U.S.-based BlackRock Inc (BLK.N), is preparing to introduce a climate infrastructure fund worth NZ$2 billion ($1.22 billion). The fund aims to allocate investments towards technologies such as solar, wind, green hydrogen, and battery storage, as announced on Tuesday.
Larry Fink, the Chairman and CEO of BlackRock, highlighted the significance of this initiative, stating that it marks BlackRock’s largest single-country endeavour in promoting a low-carbon transition. In a LinkedIn post, he expressed, “It will allow New Zealand enterprises to access larger reservoirs of capital for advancing climate infrastructure throughout the nation’s energy network.”
Although the official launch date of the fund remains undisclosed, both the government and BlackRock have jointly declared its creation. New Zealand’s electricity sector already boasts a significant reliance on renewable energy sources, yet the government has established a target for the sector to achieve complete renewables domination.
Megan Woods, the Energy Minister of New Zealand, emphasized the fund’s potential to expedite the nation’s efforts in reducing emissions. She particularly highlighted the focus on achieving 100% renewable electricity and enabling businesses to secure substantial funding for their developmental endeavours. Woods stated, “With the remarkable surge in renewable electricity generation over the past years, New Zealand is strongly positioned to become one of the pioneering nations to implement a fully renewable electricity system.”