BlackRock has pulled the plug on a flagship NZ$2 billion climate infrastructure fund in New Zealand, less than three years after the initiative was promoted as a breakthrough for clean energy investment and a potential global template for public–private climate finance.

The fund, announced in August 2023 under the then Labour government, was designed to channel large-scale private capital into renewable energy projects, including wind, solar, battery storage, electric vehicle charging infrastructure, and natural capital initiatives. At the time, it was positioned as BlackRock’s largest single-country low-carbon transition investment and a cornerstone of New Zealand’s ambition to reach 100 percent renewable electricity by 2030.

From Global Model to Quiet Exit

BlackRock has confirmed that it will no longer proceed with the New Zealand Climate Infrastructure Fund, citing a combination of client feedback and structural changes following its acquisition of Global Infrastructure Partners. The limited partnership linked to the fund was formally deregistered in late 2025 after BlackRock notified authorities that it had ceased carrying on business.

While the firm has stressed that it remains committed to New Zealand as an investment destination, the decision marks a clear retreat from a standalone, country-specific climate vehicle. According to BlackRock, clients will instead be offered exposure to New Zealand assets through its broader global infrastructure strategies.

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Political and Policy Context

The fund’s launch was closely tied to the previous government’s climate and energy agenda. Former Prime Minister Chris Hipkins described the initiative as a “game changer” for the clean tech sector, while BlackRock CEO Larry Fink said it could demonstrate how governments and private capital could cooperate on an orderly and fair energy transition.

That policy backdrop shifted following the 2023 election. The current National-led coalition government rolled back several climate commitments, with Prime Minister Christopher Luxon arguing that aggressive renewables targets risked energy security and higher power prices. By mid-2024, it had emerged that no investments had yet been made through the fund, despite BlackRock publicly maintaining confidence in New Zealand’s long-term climate infrastructure potential.

What Remains Unclear

It is still not known whether any capital was deployed through the fund before it was wound up. Questions on this point have gone unanswered. BlackRock has said it currently manages close to NZ$30 billion in investments across New Zealand on behalf of clients, with the majority sourced from offshore investors, and has recently expanded its Auckland-based team.

The company insists that the decision to abandon the dedicated climate fund does not signal a broader retreat from the country, but rather a shift in how it structures and offers infrastructure investments.

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A Mixed Track Record in New Zealand

The closure of the climate fund adds to a complex recent history for BlackRock in New Zealand. In 2024, the firm placed solar installer SolarZero into liquidation, two years after acquiring the business, resulting in significant job losses and political scrutiny. While employee entitlements were ultimately paid, the episode fuelled debate over the risks of foreign ownership in strategically important clean energy assets.

Despite this, the current government has continued to court BlackRock, including inviting the firm to participate in a high-profile infrastructure investment summit and holding direct discussions with senior leadership on attracting overseas capital.

Implications for Climate Finance

The collapse of what was once billed as a landmark climate investment vehicle raises questions about the durability of large-scale private capital commitments when policy settings change and investor strategies evolve. While New Zealand may still attract renewable energy investment through global funds, the loss of a dedicated climate infrastructure platform highlights the fragility of country-specific climate finance models in the absence of long-term political and regulatory certainty.

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