BlackRock is aiming to raise NZ$2bn for a New Zealand-focused strategy that will allow private investment in New Zealand’s transition to a low-carbon economy.
Set up through its Climate Infrastructure franchise and on behalf of New Zealand’s institutional clients, including the New Zealand government, BlackRock aims to support the country in becoming one of the first to transition to a 100% renewable energy-powered electricity grid by 2030.
It is hoped that the initiative will create investment opportunities in sectors including wind, solar, batteries, electricity storage, electric vehicle charging, natural capital projects, green hydrogen and the associated enabling infrastructure.
“This initiative between BlackRock and New Zealand is a powerful example of the public and private sectors joining forces to mobilise capital and help a country achieve its energy transition goals,” said Rachel Lord, chair and head of Asia-Pacific, BlackRock.
“New Zealand is at the forefront of low-carbon transition, and investors will benefit from the opportunities it creates.”
New Zealand has an 83% renewable energy penetration rate, but transition to a 100% renewable electricity mix is expected to require investment running to NZ$42bn in renewable power generation and distribution, as well as battery storage, to manage network reliability and deliver greater energy security for all New Zealanders.
The initiative is expected to give New Zealand companies access to larger pools of capital, thereby accelerating growth and climate infrastructure build-out, and facilitating greater transfer of knowledge and skills between New Zealand and rest of the world. According to BlackRock, this will be enhanced by their global knowledge and technical expertise to help grow the local market.
“BlackRock’s role as a fiduciary is to help clients reach their investment goals,” commented Andrew Landman, head of New Zealand and Australia, BlackRock.
“In New Zealand, there is a clear preference to invest in a range of energy transition opportunities while facilitating delivery of the long-term private capital required to create a more secure, efficient, and greener energy future for all New Zealanders.”