The fund targets manufacturing, electric vehicles, farming practices, and energy-efficient commercial buildings.
On Wednesday, New Zealand’s Prime Minister Jacinda Ardern announced the creation of a $69.28 million (NZ$100 million) green investment fund that is aimed at boosting private-sector participation so as to reach the target of zero net carbon emissions by 2050.
“This new investment fund is an important component of New Zealand’s plan to build a clean, sustainable, low-carbon economy that has both lower emissions and profitable enterprises,” said Ardern.
Her government has made climate change one of its top priorities.
The 2050 target places New Zealand in the vanguard of climate change with Norway which is aiming for net zero emission by 2030; Sweden is also aiming for the same by 2045. Both, Sweden and Norway are buying international carbon credits and are planting trees.
New Zealand faces stronger headwinds, in comparison to Norway and Sweden, in its 2050 target since it is likely to face reliability issues, when switching to renewable sources from fossil fuels powered power plants. The last 20% is likely to be tough.
Further, New Zealand’s economy relies heavily on agriculture, which is a major source of greenhouse gas emissions, globally.
The green fund essentially targets manufacturing, electric vehicles, farming practices, and energy-efficient commercial buildings, said Ardern in a statement.
In April 2018, New Zealand had announced that it was stopping new offshore oil and gas exploration permits as part of an effort to convert the nation to 100% renewable energy by 2035.
($1 = 1.4434 New Zealand dollars)