New Zealand's government has announced a NZ$2bn ($1.2bn) infrastructure fund to move the nation to 100pc renewable energy in partnership with US investment firm Blackrock.
New Zealand prime minister Chris Hipkins said the fund will speed up the nation's emissions reductions and turn the economy into a magnet for capital investment for battery storage, wind and solar generation, green hydrogen and more electric car chargers, without giving a date for the 100pc target to be met.
"The New Zealand net zero fund will look to crowd in investment from crown companies and entities, including superannuation funds, and private-sector funds to accelerate New Zealand's transition to 100pc renewable electricity," Hipkins said on 8 August.
"Investors in the green economy can see our potential and recognise our commitment to climate commitments and goals, such as our banning of further offshore oil and gas exploration."
New Zealand already has one of the world's highest penetration of renewables in its power grid because of its hydroelectricity resources. The renewables-generated share of the country's electricity market reached 88pc in this year's first quarter, its highest level since 1996 because of hydroelectric generation increasing by 7.4pc compared with a year earlier.
New Zealand's reliance on coal-fired electricity generation had increased in 2021 because of falling output from the Pohokura gas field, with gas used for electricity generation dropping by 26pc from 2020 levels, while coal use rose 30pc, according to government data.
"This is the largest single-country low-carbon transition investment initiative Blackrock has created to date," chief executive Larry Fink said on 8 August. "It will enable New Zealand companies to access greater pools of capital to build out climate infrastructure across the country's energy system including in wind power, solar power, battery storage, electric vehicle charging and natural capital projects."
New Zealand's ruling Labour party-led government took power in 2017 promising to strengthen action on climate change but has back-tracked on some measures since former prime minister Jacinda Ardern resigned in January. Her successor Hipkins cancelled the nation's planned biofuels mandate citing cost of living pressures.
