We invest to reduce emissions in New Zealand.
New Zealand Green Investment Finance is a green investment bank established by the New Zealand Government to accelerate investment that can help to reduce greenhouse gas emissions in New Zealand.
We were incorporated in April 2019 with an initial $100 million of investment capital. We are listed in Schedule 4A of the Public Finance Act 1989. The Minister of Finance and Minister for Climate Change are our shareholding ministers.
With a broad and flexible mandate, our investments can take many forms, from debt to equity, with the ability to take risk positions that help to attract co-investors.
Our investments are made on a commercial basis and we do not offer grants, subsidies or concessionary terms.
As a limited liability company independent of government, we make our own investment decisions, informed by a Board and team with expertise in investment, financial markets and sustainability.
NZGIF was established to show what is possible when capital is coupled with purpose; to illustrate that financial reward and more climate-friendly activity are not mutually exclusive.
Craig Weise, New Zealand Green Investment Finance Chief Executive
Our purpose is to accelerate and facilitate investment in emissions reductions in New Zealand
Our four objectives to help us achieve our mission.
Invest to reduce emissions
Invest on a commercial basis
Crowd-in private capital
Show market leadership
What is a green investment bank?
Globally, countries and states have established green investment banks to enable public and private investment in domestic low carbon and other environmental projects.
The mandate and scope of green investment banks can vary, but they broadly display innovative financing approaches and specialised expertise in the sector to support capital deployment.
Green investment banks are generally initially capitalised by governments but operate independently in the market to mobilise private investment.
How green banks catalyse sustainable economic development at scale
We are committed to using our capital to make a difference in moving New Zealand towards a low carbon future.
Cecilia Tarrant, New Zealand Green Investment Finance Board Chair
Our target sectors
With the mandate to invest in projects and companies that will reduce New Zealand’s emissions, we invest in the following sectors.
e.g. electric bus deployment
e.g. replacing commercial boilers
e.g. commercial building retrofit programmes
e.g. precision agriculture applications
Distributed energy resources
e.g. renewable energy systems that help wider decarbonisation
Two additional target sectors were announced in Budget 2021.
e.g. bio-plastic alternatives
e.g. waste-to-energy at landfill
Want to know more?
Read our latest annual report to find out more about us and what we do.
Climate change policy context
NZGIF operates within the wider New Zealand climate change policy framework. At the heart of the framework sits the Climate Change Response (Zero Carbon) Amendment Act 2019, and under that the recently formed Climate Change Commission.
NZGIF works to complement the government’s wider climate change response, and we will continue to engage with policy agencies to ensure that initiatives are aligned and the best outcomes are achieved.
Cabinet has mandated a review of NZGIF every five years from 2023, which will enable our mandate to be reviewed to ensure it is delivering on the outcomes we seek on the way to a low emissions economy by 2050.
Why New Zealand is different
New Zealand’s greenhouse gas emissions profile is unlike that of many other developed countries. Globally, much of the investment in low carbon activity is being channelled into large-scale renewable electricity generation, not only because electricity systems are highly fossil-fuelled but also because large, relatively simple transactions are attractive to investors.
By contrast, our electricity system is highly renewable but in our industrial and transport sectors the fuel mix is dominated by coal, gas and oil. A large proportion of New Zealand’s emissions also comes from the agricultural sector.
The size and nature of the market has implications for the way NZGIF does business, as these target sectors are in different stages of technological and market maturity and can have different forms of capital structures. These attributes present both our challenge and opportunity.
New Zealand's greenhouse gas emissions profile
New Zealand’s climate emergency creates urgency for NZGIF to use its flexible mandate and market-facing solutions to better enable the decarbonisation of the economy.