CentrePort has boosted its environmental sustainability by entering into a green credit facility of $15 million provided by New Zealand Green Investment Finance for low carbon projects at the Wellington port.
“This deal marks a significant first step in our investment in New Zealand’s long-term, low carbon economy,” Craig Weise, New Zealand Green Investment Finance Chief Executive, said today.
“New Zealand Green Investment Finance’s facility provides the finance necessary to accelerate the deployment of low carbon projects, with this capital ensuring these projects remain a priority and are developed alongside the wider regeneration of the port. We are pleased to have successfully negotiated this transaction with CentrePort, even as we both faced additional challenges introduced by Covid-19”.
New Zealand Green Investment Finance’s lending will be exclusively used to fund low carbon projects which will reduce CentrePort’s overall carbon footprint, such as the introduction of electric vehicles, on-site renewable energy generation and energy efficient upgrades. Successful investment in electrification, renewables and efficiency will not only assist the port to achieve its climate goals, but also provide an example for other firms, in the port sector and beyond.
The catalyst for this work is CentrePort’s regeneration plan following the Kaikoura earthquake in 2016. New Zealand Green Investment Finance has taken the lead in providing the finance to ensure the long-term regeneration of the port has a low carbon outcome.
“The investment in electric vehicles is part of CentrePort’s regeneration programme, which will deliver a 21st century logistics asset to benefit the economy, the city, the community and the region”, said Derek Nind, CentrePort Chief Executive. “This investment also has strong business drivers for us, delivering a more efficient supply chain system with lower running costs, as well as lower emissions”.
Greater Wellington Chair Daran Ponter said he fully supports CentrePort’s investment, which is an essential component in reducing the region’s carbon footprint.
“Emissions from vehicles have risen by 14 per cent in the Wellington region in the last decade, so the move to decarbonize transport is central to meeting our goal of carbon neutrality by 2030 across all of Greater Wellington’s operations. This is a very welcome initiative by CentrePort, and there is much more to come in areas such as our corporate and public transport fleets.”
Today’s announcement from New Zealand Green Investment Finance is the first in a series of investments planned for 2020.
Contact: Jenny Lackey, NZGIF, 021 340 847
Read NZGIF Chief Executive Craig Weise’s speech given at the media announcement
More about New Zealand Green Investment Finance
New Zealand Green Investment Finance is a green investment bank established by the Crown to accelerate investment that reduces greenhouse gas emissions in New Zealand.
With a broad and flexible mandate, NZGIF will invest via a range of capital structures, from debt to equity, with the ability to mitigate risks for our partners.
We seek to combine our $100 million in capital with other investors on a commercial basis, in companies, projects and technologies to accelerate emissions reductions.
More about CentrePort
CentrePort Limited is a transport and property infrastructure firm, built around its core port business on Wellington Harbour. With a staff of over 200 and working with a range of partners CPL provides supply chain solutions and expertise including the CentreRail Service with KiwiRail, and a network of inland cargo hubs. CentrePort facilitates international and coastal shipping, the inter-island Cook Strait ferry services, and land and aviation fuel supplies.
CentrePort is committed to environmental sustainability and this is a key element of the regeneration plan for the port.
Frequently asked questions
What is NZGIF?
New Zealand Green Investment Finance (NZGIF) is a green investment bank established by the Crown to accelerate investment that reduces carbon emissions. Set up with initial capital of NZD$100 million, NZGIF is an independent limited liability company.
What is this investment?
CentrePort Limited is a transport and property infrastructure firm, built around its core port business on Wellington Harbour. NZGIF has provided a facility which will specifically be used to finance low-emissions initiatives at the port. These low carbon initiatives sit within the port’s wider regeneration programme and the repair of damage sustained in the 2016 Kaikoura earthquake.
What does the investment deliver?
CentrePort’s low carbon initiatives for the port are in varying project stages and include the purchase of electric vehicles and associated infrastructure, on-site renewable electricity generation and/or energy efficiency upgrades.
What is a green investment bank?
Green investment banks are generally initially capitalized by governments but operate independently in the market, often to mobilize private investment.
What makes NZGIF different to other investors?
NZGIF has a specific focus on making investments that accelerate the reduction of emissions that lead to climate change, and to demonstrate to other investors that these investments can be achieved on a commercial basis.
What industries are NZGIF most interested in?
NZGIF is primarily interested in sectors that have the potential to achieve significant greenhouse gas reductions in New Zealand such as transport, building energy efficiency, process heat in manufacturing, and agriculture.
We aim to facilitate the adoption of proven technologies, and on investments that can scale up.