New Zealand’s government said on Tuesday it would increase the capital pool of New Zealand Green Investment Finance, which funds investments that reduce greenhouse gas emissions, to NZ$700 million ($444 million) from NZ$400 million.
“New Zealand’s challenge is not just about financing the climate transition, but the maturity of the markets that are expected to provide that finance,” Climate Change Minister James Shaw said in a statement.
“Public funding alone will not finance the scale of investment that’s needed, with the urgency required, to address the climate crisis.”
NZGIF is a green investment bank established in 2019 by the current Labour government. The extra NZ$300 million would provide more opportunities for the bank to develop low-carbon projects, drive down emissions and create green jobs, Shaw said.
The announcement is part of the New Zealand government’s 2023 Budget, which is to be released on May 18.
Reuters