The New Zealand Government has partnered with BlackRock, a major global investor in climate infrastructure and clean technology, to establish a $1.2 billion (NZ$2 billion) fund to achieve 100% renewable electricity in New Zealand.
This initiative is set to position New Zealand at the forefront of a 100% renewable electricity mission, making it one of the first countries in the world to reach this ambitious target.
New Zealand Prime Minister Chris Hipkins, Minister of Energy and Resources Megan Woods, and BlackRock representatives unveiled the New Zealand net zero Fund in Auckland. “This is a first of its kind fund in the country that demonstrates the huge economic potential of New Zealand being a climate leader and our goal of generating 100% renewable electricity,” Chris Hipkins said.
Economic Potential and Climate Leadership
The fund highlights the economic potential of New Zealand’s leadership in climate action. It emphasizes the country’s goal of generating 100% renewable electricity and demonstrates the compatibility of economic growth with emissions reduction.
“I’m absolutely stoked about what this means for Kiwi ingenuity in renewable energy; it shows that our ambitious climate targets have the world’s attention and that they are good for the climate, good for the economy, and will help create highly skilled jobs”.
Citing recent climate events like Cyclone Gabrielle and the Auckland floods, Prime Minister Hipkins underscored the urgency for robust climate action. These floods “were reminders we must speed up our own climate action, and the fund will supercharge investments in clean technology that might otherwise not have happened.”
Clean Tech Sector Boost
The New Zealand net zero Fund is expected to have a transformative impact on the clean tech sector, demonstrating the government’s practical approach to both climate action and economic growth.
The fund will help accelerate the country’s green energy options like solar, wind, green hydrogen and battery storage to fuel a low emissions economy. “This is a game changer for the clean tech sector and another example of the pragmatic and practical steps the Government is taking to accelerate climate action while growing our economy,” Chris Hipkins said.
Minister Megan Woods said that the fund will significantly expedite the journey towards emissions reduction in New Zealand, with a goal to achieve 100% renewable electricity. This will grant businesses access to larger pools of capital to innovate, develop, and flourish. “The New Zealand net zero Fund will look to crowd in investment from Crown companies and entities, including superannuation funds, and private sector funds to accelerate New Zealand’s transition to 100% renewable electricity.”
Pointing out New Zealand’s record levels of renewable electricity generation in recent years, Woods affirmed that the country is ideally positioned to lead the way in implementing a fully renewable electricity system in the world. “New Zealand is now an investment magnet for capital that will unlock technology such as battery storage, wind and solar generation, green hydrogen production and more electric vehicle chargers across New Zealand.”
New Zealand has the third highest rate of renewable energy as a portion of primary supply in the OECD (Organisation for Economic Co-operation and Development) after Norway and Iceland.
Renewable Energy Sources
Renewable energy sources encompass a range of options, such as solar energy harnessed from the sun, wind power derived from the wind, hydropower generated by water, bioenergy extracted from non-fossil organic materials, and geothermal energy tapped from the Earth’s heat. Non-renewable sources comprise oil, coal, natural gas, and uranium.
Countries leading in Renewable Energy Production
The shift towards harnessing renewable energy for electricity is now a concrete reality. The share of renewables in the global power mix has increased by 10 percentage points since 2010 to nearly 30%, according to 2023 statistics by consulting company Enerdata.
The latest report highlights Norway as an exemplar, with an impressive 98.5% of its energy stemming from renewable sources. Other noteworthy contributors include Brazil with 89.2%, New Zealand with 86.6%, Colombia with 75%, Canada with 68.8%, Sweden with 68.5%, and Portugal with 61% — all demonstrating a substantial commitment to renewable energy. Other countries on the list of renewables include Chile, Germany, the United Kingdom, Spain and Romania.
10 countries leading the Renewables Race in 2023
| Country | Share of Renewables in Electricity Production | |
| 🇳🇴 | Norway | 98.5% |
| 🇧🇷 | Brazil | 89.2% |
| 🇳🇿 | New Zealand | 86.6% |
| 🇨🇴 | Colombia | 75% |
| 🇨🇦 | Canada | 68.8% |
| 🇸🇪 | Sweden | 68.5% |
| 🇵🇹 | Portugal | 61% |
| 🇨🇱 | Chile | 54.6% |
| 🇩🇪 | Germany | 44.4% |
| 🇬🇧 | UK | 43.3% |
