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.
Contact: Andrew Campbell (Prime Minister) – 021 243 8573 Peter Stevens (Climate Change Minister) – 021 871 354
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 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