Wednesday, December 05, 2018

Climate Change: Helping the market

The government today announced a $100 million green investment fund to help new Zealand transition to a green economy:

The Government has bankrolled a $100 million green investment fund which aims to invest with businesses to reduce emissions while also helping them make a profit.

Climate Minister James Shaw said an increasing number of investors were looking to fund clean, sustainable ventures. The Government's $100 million start-up capital injection will help achieve this, he said.

"New Zealand faces a big job in upgrading our economy and infrastructure. New Zealand Green Investment Finance will help deliver financial backing to help ensure that the upgrade is fit for purpose," Mr Shaw said.

This is something the Greens have been advocating for years, and its a good idea. Financial markets have trouble supporting clean energy projects due to short-term thinking or a lack of long-term data, and so there's an obvious case for government to step in and fill the gap. Australia, the UK, and various US states have such institutions, and they've been useful in pushing their economies in a greener direction. Hopefully the NZ one will do a similar job (and be funded in future years to do it properly).