BlackRock plans to raise NZ$2 billion (€1.1 billion; $1.21 billion) to help New Zealand transition to a low-carbon economy, according to a statement from the firm.
The strategy will be run by the firm’s Climate Infrastructure franchise and is open to institutional clients, and was set up with the New Zealand Government. BlackRock declined to comment on how much capital had been raised so far.
The firm hopes the strategy will help New Zealand transition to a 100 percent renewable energy-powered electricity grid by 2030. Of its energy, 83 percent already comes from renewable sources; an estimated $26 billion of further investment is required for the country to meet the target.
BlackRock has previously invested in the New Zealand’s decarbonisation efforts: it committed NZ$100 million to solar energy company SolarZero is 2022.
CEO Larry Fink described the strategy as the “largest single-country low-carbon transition investment initiative BlackRock has created to date” in a LinkedIn post. The strategy “will enable New Zealand companies to access greater pools of capital to build out climate infrastructure across the country’s energy system”, he added.