New Zealand Sovereign Green Bond programme launched

New Zealand’s Sovereign Green Bond Programme has been launched providing the opportunity to invest in projects that contribute to climate and environmental objectives.

“Green Bonds provide financing to advance climate change and environmental priorities like the transition to clean transport and support for biodiversity,” Grant Robertson said.

“The bonds are a way to recognise green public sector projects already planned or underway that meet internationally recognised standards for eligibility, selection and reporting.  

Green Bonds do not mean taking on new debt over and above the Government’s existing borrowing, they will be issued as part of the overall forecast core Crown borrowing programme.  

They are issued globally to support climate-friendly initiatives, and New Zealand joins other governments around the world in making this commitment.

“Today marks a step on a continuing journey for the Government to increase transparency and reporting around climate, sustainability and wellbeing outcomes for Aotearoa New Zealand,” Grant Robertson said.

Money raised from the bonds will be used to support projects that help reach the Government’s pledge to reduce net greenhouse gas emissions by 50 percent by 2030 and reach its net zero carbon target by 2050.

James Shaw said the decision to issue Green Bonds reflects the Government’s strong commitment to accelerate investment in the transition to a zero-carbon economy.

“The Government is committed to bold, enduring climate action. The Emissions Reduction Plan and the record $2.9 billion of funding in Budget 22 underlines the seriousness with which we take our climate targets.

“But after decades of climate inaction we are playing catch-up – and that means we need to see big changes across every sector of the economy, starting right now. Directing capital towards climate-friendly initiatives is one way we can encourage and enable those changes.

“In addition to providing financing for public sector projects, the Sovereign Green Bond Programme will also support the development of New Zealand’s wider sustainable finance market, which has been central to our vision for building a net-zero, productive, sustainable and inclusive economy since we came into Government,” James Shaw said.

New Zealand Debt Management at the Treasury is leading work on the Green Bond Programme. Subject to market conditions, the inaugural issuance is expected in late 2022.

Further information on the Green Bond Programme is available on the New Zealand Debt Management website here.