New Zealand¡¯s government has partnered with U.S. investment firm BlackRock to supercharge its efforts to become one of the first countries in the world to achieve a 100% renewable electricity supply.

The government and BlackRock have announced a 2 billion New Zealand dollar ($1.2 billion) fund that will provide access to greater pools of capital for New Zealand businesses, to accelerate investment in green energy such as solar, wind, green hydrogen and battery storage.

¡°This is a first-of-its-kind fund in the country that demonstrates the huge economic potential of New Zealand being a climate leader,¡± New Zealand Prime Minister Chris Hipkins said Tuesday in Auckland. ¡°This fund is a massive opportunity for New Zealand innovators to develop and grow companies.¡±

New Zealand already generates more than 80% of its electricity from renewable sources such as hydro-electric dams, and it aspires to reach 100% by 2030. That will require significant investment to replace fossil fuel-fired turbines with more wind, solar and geothermal plants, as well as improved transmission and storage.

BlackRock estimates the transition to 100% renewable electricity will require investment running to NZ$42 billion. The new fund will provide a platform through which institutional investors can invest in that transition, it said in a statement.

The fund is the firm¡¯s ¡°largest single-country low-carbon transition investment initiative¡± to date, BlackRock Chief Executive Larry Fink wrote in a post on Linkedin.

Minister of Energy and Resources Megan Woods said the so-called ¡°New Zealand Net Zero Fund¡± will look to attract investment from Crown companies and entities, including superannuation funds, and private sector funds.

¡°This arrangement means we will get there faster, with opportunities for local investment in a low emissions economy,¡± she said. ¡°That will be a significant selling point for New Zealand businesses as consumers demand more sustainable products and services.¡±