New Zealand, BlackRock launch USD-1.2bn climate fund

The government of New Zealand is partnering with New York-based investment manager BlackRock Inc (NYSE:BLK) to launch a NZD-2-billion (USD 1.2bn/EUR 1.1bn) fund aimed at helping to make New Zealand one of the first countries to switch to 100% renewable electricity.

The fund was announced in Auckland today by Prime Minister Chris Hipkin, Minister of Energy and Resources Megan Woods and BlackRock representatives.

“The New Zealand net zero Fund will look to crowd in investment from Crown companies and entities, including superannuation funds, and private sector funds to accelerate New Zealand’s transition to 100% renewable electricity,” Megan Woods said.

BlackRock’s chairman and chief executive Larry Fink said in a Linkedin post that the fund is BlackRock’s largest single-country low-carbon transition investment initiative.

It is expected to provide New Zealand companies with more capital to deliver green energy projects such as solar, wind, green hydrogen and battery storage.

Larry Fink also commented that as COP28 approaches, the world seeks models of public-private cooperation for a just energy transition and that BlackRock's New Zealand climate infrastructure strategy can be a potential example.

(NZD 1 = USD 0.610/EUR 0.555)

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