BlackRock chief executive Larry Fink said the fund was the company's biggest single-country climate initiative.
"It will enable New Zealand companies to access greater pools of capital to build out climate infrastructure across the country's energy system including in wind power, solar power, battery storage, electric vehicle charging, and natural capital projects," he said.
BlackRock is the world's biggest asset management fund, managing assets worth roughly $A15 trillion.
Prime Minister Chris Hipkins said he was "absolutely stoked" to announce the fund in Auckland on Tuesday.
"It proves again that we can grow our economy while we lower emissions. This fund is a massive opportunity for New Zealand innovators to develop and grow companies," he said.
New Zealand's 100 per cent renewable electricity generation pledge was made by former prime minister Dame Jacinda Ardern in the lead-up to the 2020 election.
BlackRock executive Charlie Reid said their current assessment was that New Zealand was 83 per cent renewable-powered, and that roughly $NZ42 billion of investment was needed to reach the 100 per cent goal.
Record rainfall in 2023 year has super-charged hydro power generation, meaning renewables have provided over 90 per cent of New Zealand's energy at times this year.
"This fund will allow New Zealand to go further and faster," Energy Minister Megan Woods said, citing the growth potential particularly in offshore and onshore wind.
On Monday, the government gave fast-track consent to three new wind farms which will operate 82 new turbines producing 420Â megawatts of electricity at peak output.
"The least-windy sites in Zealand are considered to have better wind energy potential than the windiest site in Australia," Dr Woods said.
"New Zealand is better placed than most other countries in the world to allow new renewable electricity generation projects."
The new fund comes after strong ties between the Labour-led government and BlackRock.
On a visit to the US last year, Dame Jacinda led a Kiwi trade delegation to a roundtable meeting of investment executives at BlackRock's global headquarters, including Mr Fink.
The government is also spending huge amounts to lower industrial emissions.
It is contributing $NZ140 million ($A130 million) to NZ Steel building an electric arc furnace in a move that will reduce New Zealand's overall emissions by one per cent.
The government will also subsidise dairy giant Fonterra by up to $NZ90 million ($A84 million) to cut out coal use at dairy factories, which will reduce the country's total emissions by a further 0.3 per cent.
Figures released by Stats NZ last month show the country is gradually reducing its emissions as it aims for net zero emissions by 2050.
In 2019, New Zealand emitted 79.99 million tonnes of gross greenhouse gases, a number which has fallen in each year since.
In 2020, emissions dropped to 77.3 million, which was attributed to COVID-19 lockdowns, but in 2021, emissions dropped again to 76.82 million.
Newsroom reports a forecast for 2022 emissions, the calculation of which will not be finalised for some months, is for between 74-76 million tonnes, which would be the lowest yearly tally this century.
