It’s time to speed up investment in the big projects that will kick-start the green economy and create good jobs.
Responding to the challenge of climate change is an opportunity to shift New Zealand’s economy onto a cleaner path. The Green Infrastructure Fund will help fund transformative projects that move New Zealand towards a carbon-neutral economy by 2050.
In our first term of Government, the Green Party will:
- Establish a government-owned, independent, for profit Green Infrastructure Fund with a social and environmental purpose, to act as a magnet attracting private finance to transformational low carbon, climate resilient projects.
- The Fund will kick-start new clean infrastructure projects like solar and wind power installations, energy efficient buildings, biofuels, and other clean technologies.
- The Fund will have a minimum target rate of return of 5 percent, an annual emissions reduction goal of one million tonnes of CO2, and generate thousands of new jobs.
- It will cost $110 million over three years to be initially paid for by raising oil royalty rates from 46 percent to the international average rate of 70 percent.
In time, the Fund will see billions of dollars of (mainly) private sector finance funding new renewable energy plants, solar panel installations, energy efficiency retrofits, the development and production of significant volumes of biofuels, and other clean technology projects.
Similar green investment funds and banks can be found in Europe, Australia, Japan, Malaysia, and the United Arab Emirates. Six states of America — California, New York, Hawaii, New Jersey, Rhode Island, and Connecticut — have newly established green banks. With the help of green banks and funds, these countries are achieving greater economic prosperity while at the same time reducing their contribution to climate change. New Zealand can too.
How does it work?
- The government kick-starts the Green Investment Fund with an initial injection of $100 million.
- The government investment acts as a magnet to attract other private investors, such as pension and Kiwisaver funds, iwi, and other long-term investors. Overseas, similar funds have raised up to $10 for every $1 of government contribution.
- The Fund provides finance or equity to organisations that have strong plans to build infrastructure or other projects that help to reduce New Zealand’s contribution to climate change.
- A project gets funded and built.
- Over time, the organisation that built the project pays back the Green Infrastructure Fund or the Fund’s stake in the project gets sold off for a profit.
This was first proposed by the Green Party in 2014, and re-announced in 2017. It was included in our Confidence and Supply Agreement, and in Government, we have delivered with the creation of New Zealand Green Investment Finance Ltd, who will accelerate low emissions investment in New Zealand.