‘Green’ carbon-neutral transition investment fund launched

A $100 million fund has been launched to promote growth in low-carbon business to help “transition to a clean, green, carbon-neutral New Zealand”.  It is called New Zealand Green Investment Finance Ltd so the Greens get to promote their name along with the business orientated fund.

This has come from the Labour-Green Confidence & Supply Agreement, which included:

4. Stimulate up to $1 billion of new investment in low carbon industries by 2020, kick-started by a Government-backed Green Investment Fund of $100 million.

It is a one-off sum that is intended to “operate independently from Government and work in a market responsive and commercially focused way” in contrast to NZ First’s much larger $1 billion per year Provincial Growth Fund that Shane Jones keeps dishing out as he promotes himself as a champion of the provinces.

It is a sizeable amount of money, but is probably a worthwhile trial to see if James Shaw’s aim of a establishing a ‘green’ economy.

Jacinda Ardern, James Shaw: $100 million 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.

“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.

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, commercialisation 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.

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, NZGIFwill 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.

More details about NZ Green Investment Finance Ltd are available here.

The government funded company may take a few years to prove if there is good business in low-carbon initiatives.

 

 

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18 Comments

  1. Shaw seems to be a bit of a lone voice in the Greens on a business orientated approach to ‘transitioning; to a low carbon economy.

    I don’t see any other Green MPs in the ‘Like’ or ‘Retweet’ lists.

    Reply
    • David

       /  December 6, 2018

      Probably because they are socialists and the environment is of secondary concern, almost like a cloaking device that prevents media scrutiny of the more loopy members, policies and MPs.

      Reply
  2. Ray

     /  December 6, 2018

    Hardly surprising p, the Greens are great about talking about the problem (and hyping it up, where is my ice fee Arctic) not so good about solutions that don’t include tax and banning stuff.
    I don’t include our friend Robert in this, he thinks we could feed ourselves by covering the land with trees and deriving our food from the trees and small patches of vegetables.

    Reply
    • robertguyton

       /  December 6, 2018

      “Thinks we could”?
      Knows we will.
      Managed woodlands, Ray. As far as the eye can see. Happy little woodland creatures, we.

      Reply
      • Ray

         /  December 6, 2018

        I think it would work just as well as that bright idea of that Stalin and his mates are up with, farm collectivisation, millions starved, your idea will kill billions as it is basically a step back into the farming of the stone ages when the world population was millions.

        Reply
  3. artcroft

     /  December 6, 2018

    Teachers, nurses, police, midwives all taxpayers ask for a decent wage rise, the first in a long time. Labour fights tooth and nail. But any politician who rocks up with an empty excuse to fleece the taxpayer… well hey Labour’s got money for that. Ardern is shameless.

    Reply
  4. David

     /  December 6, 2018

    If I live somewhere that relies on growing stuff or feeding stuff from what is growing why would I want to reduce the amount of stuff that makes the other stuff grow. CO2 is great for NZ we should be pumping more of it out and capturing that super growth.

    Reply
    • Alan Wilkinson

       /  December 6, 2018

      So does warmth and more rain. That’s what the alarmists are threatening us with isn’t it?

      Reply
      • Gezza

         /  December 6, 2018

        No they are warning us of the potential for increasing destruction or damage to our environments, homes & livelihoods by rising sea levels and more frequent and bigger storms or other significant and unusual sudden changes in weather patterns, which we may not be easily able to adapt to globally or regionally without massive social and geopolitical upheaval.

        Reply
        • Gezza

           /  December 6, 2018

          Reply
          • Noel

             /  December 6, 2018

            Which vase doesn’t have the Greens special fertilizer?

            Reply
            • Gezza

               /  December 6, 2018

              The one on the right has hydrogenated water. You can see how much more vibrant & spectacular the regrowth is.

        • Alan Wilkinson

           /  December 6, 2018

          Actually they are focused mostly on panicking about sea levels since the public got bored with all their other nonsense and world biosphere growth took off enjoying the extra warmth and CO2.

          And since sea level rise has been so modest they have had to predict accelerations and catastrophic collapses to get any traction on that either.

          Reply
          • Gezza

             /  December 6, 2018

            Well, possibly you have been tracking them a lot longer than I, Sir Alan. When I hadn’t unexpectedly drowned going to my local NW or to The Warehouse up at Porirua Megacentre 15 years ago as predicted I came back to check what had gone wrong because I was feeling a touch suicidal at the time observing what was happening at my workplace where the lunatics had finally taken over the asylum and noticed catastrophic storms and freak weather were being talked about then. I think it was probably when I left work and got interested in whether hurricanes were getting bigger and/or more frequent I checked and discovered they had a 25 year natural cycle of doing this anyway and those that had been occurring at the time were still within the statistical range of noise.

            Reply
  5. Zedd

     /  December 6, 2018

    “NICE ONE !!” 🙂

    Reply

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