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New Zealand has partnered with BlackRock in a $1.2-billion fund that would be used to accelerate the country’s efforts to become a net-zero emitter.
Bloomberg reports that the money from the fund, when raised, would be used to finance local companies in their shift from hydrocarbons to solar, wind, green hydrogen, and battery storage.
For BlackRock, the fund is a means to draw private investment into New Zealand’s transition, which, according to the asset manager would cost some NZ$42 billion or $25.5 billion.
“This is the largest single-country low-carbon transition investment initiative BlackRock has created to date,” BlackRock CEO Larry Fink said in a LinkedIn post.
“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.”
The New Zealand minister of energy and resources, Megan Woods, said that the fund would seek investments from local state and private companies, including pension funds.
Woods also said, as quoted by Bloomberg, that “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.”
New Zealand already gets most of its energy from hydropower, which makes it a lot greener than, for instance, Germany. However, the goal is to be 100% low-carbon in terms of energy and the investment fund launched with BlackRock is expected to help achieve that.
“This is a first-of-its-kind fund in the country that demonstrates the huge economic potential of New Zealand being a climate leader,” Prime Minister Chris Hipkins said. “This fund is a massive opportunity for New Zealand innovators to develop and grow companies.”
By Charles Kennedy for Oilprice.com
Charles is a writer for Oilprice.com