Govt announces commercially focused $100M green investment fund
The government's $100 million Green Investment Finance fund, launched today, will concentrate its efforts on decarbonisation investments outside renewable energy, Green Party co-leader James Shaw says.
Operating as a company under the Public Finance Act, the fund is intended to attract much larger sums of private capital to green investments and will be established on far more strictly commercial terms than the $3 billion Provincial Growth Fund.
Shaw said the fund will target similar leverage ratios to similar funds in other countries, which generally aim at three- to four-times leverage, and he'd hope to see the private sector investing around $300 million. It will have a targeted rate of return of 2 percentage points above the benchmark five-year government bond rate.
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