The New Zealand government has partnered with BlackRock to unveil a $1.2 billion climate infrastructure fund that could shape the role the country has in the renewable energy sector. Together, the companies plan to achieve 100% renewable electricity in New Zealand, which would have the potential to make it one of the first countries to achieve such a goal.
New Zealand Prime Minister Chris Hipkins is hopeful that obtaining 100% renewable electricity will provide the country with more opportunities for clean energy. In particular, Hipkins said he is eager for the country to develop more renewable energy intellectual properties in the future.
The New Zealand government is helping BlackRock launch the multi-billion dollar fund to increase the company’s investments in wind and solar generation, as well as battery storage and green hydrogen. Andrew Landman, head of BlackRock in Australia and New Zealand, emphasized how New Zealand’s step toward transitioning to net-zero emissions can produce a number of intellectual property development and global commercialization benefits.
New Zealand officials are hopeful for the fund’s potential impact on New Zealand’s economy and global environment. It is expected to attract investment from Crown companies, superannuation funds, private sector funds, and other entities, accelerating the nation’s journey towards massive energy transitions, the government said. The investments in clean technology and renewable energy are poised to decarbonize energy usage while concurrently helping grow local companies.
New Zealand’s Renewable Electricity Goals
This landmark initiative, a first-of-its-kind in the country, signals the economic potential of New Zealand’s climate leadership while simultaneously fostering the development of innovative local businesses and creating highly skilled jobs. Hipkins, together with Energy and Resources Minister Megan Woods and representatives from BlackRock, announced the establishment of the New Zealand net zero Fund in Auckland.
Hipkins emphasized the economic and environmental implications of the fund. He stressed that the fund represents an opportunity for homegrown innovators to cultivate and expand companies, catalyzing a surge in renewable energy technology and expertise.
With New Zealand already generating around 82% of its electricity from renewable sources, particularly hydroelectric power from dammed rivers, the government aims to reach the pinnacle of a fully renewable electricity system by the end of the decade. The fund’s primary focus will be to accelerate the deployment of clean energy solutions such as wind and solar generation, battery storage, and green hydrogen production.
The New Zealand government, with collaboration from BlackRock, is hopeful to be carbon neutral by 2050.