BUDGET 2023: Green investment bank receives $300 million capital injection

NZGIF Budget 23 visual

New Zealand Green Investment Finance (NZGIF) has received an additional $300 million in investment capital, increasing its total pool of investment capital to $700 million.

NZGIF is New Zealand’s green investment bank. We’re focused on identifying investment opportunities that help drive the decarbonisation of New Zealand’s economy.  By investing its capital on a commercial basis, it demonstrates and promotes the benefits of green investment to the private sector and attracts private capital to low carbon co-investment opportunities over time to grow overall investment in decarbonisation. 

NZGIF has a long-term mission, recognising the need to accelerate investment and attract capital to low carbon solutions, in line with New Zealand’s net-zero 2050 goals.  To date, our investments have supported more solar systems on roofs and farms, more electric vehicles on the roads (and an EV charging network), more clean technology in businesses and some exciting agricultural emission reducing initiatives.

NZGIF has committed to 16 direct investments to date and has a strong pipeline of opportunities (15 different opportunities worth over $300m are in the pipeline).  Active investments completed at 30 June 2022, were estimated to deliver more than 600,000 tonnes of carbon reduction over the lifetime of the investments, along with a range of co-benefits that enable the wider decarbonisation of the economy.

NZGIF Chair Cecilia Tarrant says “The extra capital will enable NZGIF to broaden its focus. The right scale of investment can be a powerful market signal, enhance NZGIF’s market position and credibility, open new parts of the market to us, and attract larger sums of private capital. “

“It’s exciting to receive the support of our shareholders. With this additional capital we will continue to deliver on our mandate and be even more impactful in the market” says NZGIF CEO Craig Weise.

“Furthermore, increased scale enables the delivery of greater carbon benefits and provides a platform for the future development of financial products, and programmes, that will drive increased private capital flows towards low carbon activity,” says Mr Weise.

In addition to decarbonisation benefits, NZGIF’s investments produce a range of secondary benefits for New Zealand including economic activity and job creation.