WELLINGTON, Dec. 5 (Xinhua) -- The New Zealand Green Investment Finance Ltd was launched on Wednesday with a 100 million NZ dollars (69 million U.S. dollars) fund to reduce greenhouse gas emissions.
The fund is a central plank in the government's plan to transition to a clean, green, carbon-neutral New Zealand, Prime Minister Jacinda Ardern said in a statement.
"Tackling climate change is a priority for this government and business involvement is crucial to our success. No one can opt out of the impacts of climate change. This fund helps business to opt in to the solution," Ardern said, adding lowering emissions will require innovation and action from all sectors.
This fund means the government is bringing cash and know-how to the table to partner with business to deliver a clean, green future for everyone, according to the prime minister.
"This new investment fund is an important component of New Zealand's plan to build a clean, sustainable, low-carbon economy that has both lower emissions and profitable enterprises," Ardern said.
New Zealand Green Investment Finance will be a commercially focused investment company which will work to invest with business to reduce emissions while making a profit, Climate Change Minister James Shaw said.
The government's 100 million NZ dollars start-up capital injection is intended to stimulate new private sector investment in low-emissions industries, with returns over subsequent years expected to pay back the government's investment and see New Zealand Green Investment Finance stand on its own commercial footing, the minister said.
"More and more investment dollars are looking for clean, sustainable ventures to invest in. Establishing this fund positions, New Zealand sets to attract its share of that investment capital," the minister added.