Budget 2018 marks a significant step in our plan to transition to a net-zero-emissions economy by 2050, says Climate Change Minister James Shaw.
“The Green Investment Fund will stimulate significant private-sector finance into the low-emissions projects and businesses that New Zealand needs.
“In places like Australia, the UK and some US states, green investment funds have been hugely successful, attracting capital to fund low-carbon transitions and reduce climate pollution. As Mōhio’s recent climate-finance report[1] states, global capital is already shifting into climate-aligned investments. Our plan will make New Zealand part of that shift.
“Budget 2018 sets aside $100.0 million of new capital funding for the Green Investment Fund, designed to encourage private-sector investment in high-value, low-carbon industries, clean tech and new jobs.
“Collaboration and partnership are important in the economic transition over the next few decades. We’re beginning that process now so that our economy, cities and regions have the time for a well-considered transition.
“The Fund is a result of the Confidence and Supply Agreement between Labour and the Green Party.
“The Fund will be established by the end of 2018. There is an expectation it will repay initial Crown operational funding once it is self-sustaining,” says James Shaw.
Meanwhile, an additional $14.0 million in new funding is provided over the next four years to help deliver on the Government’s commitments to address climate change, including:
- passing a Zero Carbon Act
- amending New Zealand’s emissions trading scheme
- establishing an independent Climate Change Commission
- continuing New Zealand’s international efforts to ensure the integrity of the Paris Agreement.
[1] David Hall and Sam Lindsay (2017), Climate Finance Landscape for Aotearoa New Zealand: A Preliminary Survey, Report Prepared for the Ministry for the Environment, Auckland: Mōhio (available on the Ministry for the Environment’s website: www.mfe.govt.nz).
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