Simon Watts. Photo: RNZ / Samuel Rillstone
The government's green investment bank is being shut down.
Climate change minister Simon Watts said New Zealand Green Investment Finance (NZGIF) would stop making new investments and wind down its existing portfolio.
"Almost $400 million has been invested with very limited results and there are more than 20 other government funds operating with similar objectives to the NZGIF," Watts said.
NZGIF was established in 2019 by the then Labour-led coalition as part of the government's climate change plans to invest in low-emissions investments.
Watts said the need for government involvement in the sector had reduced, saying there was a bigger market for low-emission investments and the country's Emissions Trading Scheme.
"This government is serious about climate change, that's why we have committed to doubling renewable energy, investing in technology to lower emissions while boosting productivity, and cutting barriers to green investment," he said.
NZGIF recently attracted controversy over its $145m loan to failed solar company SolarZero, leading to the resignation of its chair Cecilia Tarrant.
Watts was critical of NZGIF's performance.
"In the current economic environment New Zealanders want assurance that taxpayer money is being well spent and delivering results," Watts said. "We believe NZGIF is no longer aligned to that vision."
Watts said the transition would be done in a "structured and responsible manner", with NZGIF developing a plan for ministers within 90 days.
