As Impact Investment Fund Managers, it’s important that Purpose Capital comments on the New Zealand Government’s Second Emissions Reduction Plan (ERP2), especially as related to scaling private investment in emissions reduction.
Our key recommendations are that the government:
Establish more arm’s length funds like NZGIF to lead investment and draw in co-investment.
Establish NZGIF like funds to drive energy efficiency, electrification, habitat restoration, biodiversity support.
Facilitate ‘blended finance’ e.g. in-kind expert advice, grant funding and concessionary funding into investments with challenging business models – such as habitat restoration, biodiversity support, native tree afforestation.
Not everything that needs to be done to address the climate crisis will attract private capital. Much of what needs to be done will not be supported by the current economic model and ‘risk adjusted return’.
Therefore, the commitment of finance and resourcing from government is critical to at times ‘standing up’ investment opportunities and enabling and accelerating private investment and involvement.
We are grateful to the many other respondents who shared their responses ahead of time, including, but not limited to: Rewiring Aotearoa, the Greens, Ekos, The Climate Club, Planetary Ecology, and Toitū Envirocare.
Given the tight timeline and small size of our team, we have used the templated response document and included points from several of the above submissions where we were in agreement.
We also appreciate the submission shared afterwards by Centre for Sustainable Finance: Toitū Tahua and agree with their points.
You may view our submission here.
Purpose Capital are Impact Investors who drive positive environmental and social change in the Waikato, Bay of Plenty and greater New Zealand. New Zealand’s largest private impact investment fund, Purpose Capital is founded on the principle that we can effect change through well-run commercial investments that deliver impact as well as financial return.
Through demonstrating the effectiveness of our approach, Purpose Capital aims to increase impact investments from asset and fund managers as well as private and philanthropic wealth. By leading investment opportunities, we provide confidence to other investors to invest alongside us in impactful companies and projects.