The Green Party says it would set up a $120 million
"Green Investment Bank" to fund green tech projects, with the
money to come from hiking oil and gas royalties.
"The Green Investment Bank will be an enduring,
government-owned, for-profit bank partnering with private
sector to fund new projects ranging from renewable energy and
biofuel production to new clean technologies", Greens
Co-leader Russel Norman said.
"Considerable new investment opportunities lie in renewable
energy plants, solar panel installations, energy efficient
retrofits, the development and production of significant
volumes of biofuels, and new clean technologies."
The party pointed to PricewaterhouseCoopers estimates that
clean technology could be worth between $7.5 billion and $22
billion to the New Zealand economy by next year.
"We want to ensure it's on the higher end of those
forecasts", said Dr Norman.
Dr Norman said the bank would cost about $120 million over
the next three years, "and will be paid for by raising oil
mining royalty rates to those charged internationally".
"By ending fossil fuel subsidies and raising the overall tax
take from oil companies from 46 per cent to the global
average of 70 per cent, we'll have more than enough to cover
this initial outlay of capital" the party said in supporting
material released this morning.
Dr Norman said the bank would act as a catalyst for private
sector investment into the green economy rather than
competing with it.
It would seek private sector capital for clean-tech
investments "until a time when these investments become
The bank would apply a "commercial filter" to investment
decisions" but that filter would be "more flexible that the
private sector equivalent, as the bank has a public policy
It would target a rate of return at or above the government's
bond rate and would be run independently from the Government
like the Superannuation Fund.
Building a Green Bank
* Year One: An independent working group appointed to
determine the final details of the venture.
* Year Two: The bank is set up, and with indicative costs
from similar projects in Australia suggesting a cost of $15m
* Year Three: The bank opens a "government line of credit" of
up to $100 million, initially in the "priority area" of
carbon reduction and energy and resource efficiency.
- By Adam Bennett of the New Zealand Herald