A $100 million investment fund for green projects has been established as part of the Budget.

It is one of the Green Party's big gains in the Budget, alongside increased funding for predator control and biodiversity protection.

The Green Investment Fund, which will be established by the end of the year, is designed to stimulate private sector investment into low-carbon projects, technology and businesses.

Climate Change Minister and Green Party co-leader James Shaw said similar funds had proven successful in the UK and some US states.


"Global capital is already shifting into climate-aligned investments," he said.

"Our plan will make New Zealand part of that shift."

Shaw said that over time, the fund was expected to repay the initial Crown spending of $100m.

The coalition Government has set a target of reducing New Zealand's greenhouse gas emissions to net zero by 2050.

Another $14m over the next four years would go into other climate change policies, including the establishment of a new Climate Commission, which will set emissions reduction targets and guide government on how to reach them.


In total, the Government will spend an additional $181.6m over four years on conservation initiatives.

The largest portion of it - $81.3m over four years - will go into predator control, as announced last week.


That is $10m more than the previous National Government was promising on the campaign trail.

Conservation Minister Eugenie Sage said it would mean that DoC would not have to shift or cut funding in other areas when it needed to find money for programmes like Battle for Our Birds - which took place during a mast year when pest numbers were higher.

There is also $76m for biodiversity initiatives.

Sage said the new money would reverse a biodiversity crisis in New Zealand, in which 82 per cent of native birds are now classified as threatened or at risk of extinction.


The Sustainable Farming Fund has been given $15m over four years.

The fund encourages collaborations between farmers, scientists and iwi on projects which protect the environment and optimise the use of natural resources.

It is currently oversubscribed, Agriculture Minister Damien O'Connor said. In the last funding round, just 28 out of 86 applications could be approved.


The Budget includes $85m for the biosecurity response to M. Bovis disease, which has infected thousands of cows across the country.

"This disease is a regrettable example of why we need to properly fund biosecurity in New Zealand," O'Connor said.

More than 20,000 cows have already been culled after becoming infected with the bacterial disease, which causes serious health problems in cows but does not enter the food chain.

Finance Minister Grant Robertson said biosecurity incursions were happening more frequently and New Zealand needed to reconsider the way it dealt with them.

He expected to make an announce on this issue soon.