Chucking millions of taxpayers’ money at 'green' banks will not reduce emissions

The New Zealand Taxpayers’ Union slams spurious claims by the Minister for Climate Change, James Shaw, that a $300 Million increase in New Zealand Green Investment Finance’s (NZGIF) funding will reduce emissions.

Taxpayers’ Union Campaigns Manager, Callum Purves, says:

“Once again, the Government doesn't seem to understand its own Emissions Trading Scheme (ETS). Any emissions reductions that this funding brings about will simply free up carbon credits to be used by other businesses under the ETS. This is a government vanity project that will not reduce net emissions by even a single gram.

“On top of that, this investment is gambling with taxpayers’ money. Private investors will carefully assess the viability of a project before stumping up the cash, which begs the question what NZGIF can bring to the table except risking other people’s money on projects which are likely to be unprofitable?

“We shouldn’t need to keep highlighting the same point every time the Government throws taxpayers’ money at one of its ineffective climate vanity projects. The bank should instead be privatised and the money raised used to pay down debt. A privately-owned green bank would likely do a better job of financing viable green investments."