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"This is the largest single-country low-carbon transition investment initiative BlackRock has created to date," Larry Fink, chairman and chief executive at BlackRock, said in a Linkedin post.

"It will enable New Zealand companies to access greater pools of capital to build out climate infrastructure across the country’s energy system," he added.

The government and BlackRock announced the fund in a joint statement but provided no details about its launch date.

New Zealand’s electricity sector is already largely dominated by renewable energy but the government has set a target for it to be 100% renewable.

"This fund will accelerate New Zealand’s emissions reductions, with a particular focus on our path to 100% renewable electricity, enabling our businesses to access greater pools of capital to develop and grow," New Zealand energy minister Megan Woods said.

"With record levels of renewable electricity generation in recent years, New Zealand is well-positioned to be one of the first countries in the world to deliver a fully renewable electricity system," Woods added.