The Government's new climate fund deal is puzzling some investment sector leaders

Chris Hipkins announced they're partnering with BlackRock Capital on a two billion dollar fund to invest in renewable solar, wind and green hydrogen energy infrastructure.

JMI Wealth Director Andrew Kelleher says it's perplexing, because New Zealand fund managers are already making similar investments.

Kelleher says this sounded like an announcement done by those who don't understand what's currently happening.

But Energy Minister Megan Woods says people are being too quick to dismiss what what she's calling a major step forward.