Blackrock launches multi billion fund to help drive NZ to 100% renewables

New Zealand’s government and US investment giant BlackRock announced on Tuesday the launch of a $NZ2 billion fund designed to help the country become one of the first countries in the world to reach 100% renewable electricity.

BlackRock has been involved in managing retirement savings of many New Zealanders for over a decade and is now expanding its role in the country to unlock investment to support a 100% renewable electricity grid.

New Zealand’s electricity grid already runs on around 82% renewable electricity thanks mostly to a large-scale hydroelectric network and is hoping to increase that level to 100% by the end of the decade.

The new $NZ2 billion fund is a first of its kind climate infrastructure fund for BlackRock, which hopes to tap into institutional investors and government-owned companies.

The fund will help to accelerate green energy technologies like solar, wind, green hydrogen, and battery storage.

“This is the largest single-country low-carbon transition investment initiative BlackRock has created to date,” said Larry Fink, the chairman and CEO of BlackRock.

“It will enable New Zealand companies to access greater pools of capital to build out climate infrastructure across the country’s energy system including in wind power, solar power, battery storage, electric vehicle charging, and natural capital projects.”

Megan Woods, New Zealand’s minister of energy and resources, said the fund would accelerate the country’s transition to 100 per cent renewable electricity by “crowding in” investment from Crown companies, superannuation funds, and private sector funds.

“This arrangement means we will get there faster, with opportunities for local investment in a low emissions economy,” she said. “That will be a significant selling point for New Zealand businesses as consumers demand more sustainable products and services.”

Blackrock has ties to the fossil fuel industry as well as gun and weapons manufacturers, but it remains one of the world’s largest investors in climate infrastructure and clean technology.

In Australia, it has committed to more than $1 billion in battery storage investments through Akaysha Energy, including the huge Waratah Super Battery in NSW.

According to Andrew Landman, the head of BlackRock in New Zealand and Australia, “BlackRock invests on behalf of its clients, we give them choice. We’re not protecting ourselves against greenwashing here.”

New Zealand’s prime minister Chris Hipkins announced the net zero fund alongside Woods and BlackRock representatives in Auckland on Tuesday.

“This is a first of its kind fund in the country that demonstrates the huge economic potential of New Zealand being a climate leader and our goal of generating 100% renewable electricity,” said Hipkins.

“It proves again that we can grow our economy while we lower emissions. This fund is a massive opportunity for New Zealand innovators to develop and grow companies.

“I’m absolutely stoked about what this means for Kiwi ingenuity in renewable energy; it shows that our ambitious climate targets have the world’s attention, and that they are good for the climate, good for the economy, and will help create highly skilled jobs.”