Christopher Luxon is defending spending millions on clean energy in Asia while cutting costs and Government jobs in New Zealand. 

The Government has committed $41 million towards an Asian Development Bank clean energy transition initiative. 

Luxon says the funding demonstrates New Zealand's commitment to help reduce global carbon emissions. 

He told Mike Hosking the money comes out of an existing budget, specifically set aside for overseas projects like these. 

He understands things are tough in New Zealand at the moment, but the Government needs to do what it can to get the books back in shape. 

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