The Government is working with one of the world’s largest investment companies to raise $2 billion fund focused on making New Zealand the first country in the world with 100 per cent renewable electricity.

Prime Minister Chris Hipkins today said that a deal had been reached with the United States multinational BlackRock to develop a climate infrastructure fund to support New Zealand businesses, help create more highly-skilled local jobs, and accelerate green energy options like solar, wind, green hydrogen and battery storage to fuel a low emissions economy.

Hipkins said “the first of its kind” New Zealand net zero fund demonstrated the “huge economic potential of New Zealand being a climate leader and our goal of generating 100 per cent renewable electricity”.

“It proves again that we can grow our economy while we lower emissions.

“This fund is a massive opportunity for New Zealand innovators to develop and grow companies.

“I’m absolutely stoked about what this means for Kiwi ingenuity in renewable energy; it shows that our ambitious climate targets have the world’s attention, and that they are good for the climate, good for the economy, and will help create highly skilled jobs.”

Hipkins said New Zealand was “well-positioned” to be a home for this investment, which was critically needed as impacts of climate change increased here and around the world.

“Cyclone Gabrielle and the Auckland floods were reminders we must speed up our own climate action, and the fund will supercharge investments in clean technology that might otherwise not have happened.”

Energy Minister Megan Woods said this would accelerate New Zealand’s emissions reductions.

“With record levels of renewable electricity generation in recent years, New Zealand is well-positioned to be one of the first countries in the world to deliver a fully renewable electricity system.

“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 is now an investment magnet for capital that will unlock technology such as battery storage, wind and solar generation, green hydrogen production and more electric vehicle chargers across New Zealand.”

The announcement follows other Government partnerships with major companies including NZ Steel and Fonterra to reduce emissions while retaining jobs.

“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 100 per cent renewable electricity,” Woods said.

“This arrangement means we will get there faster, with opportunities for local investment in a low emissions economy. That will be a significant selling point for New Zealand businesses as consumers demand more sustainable products and services.”