Investment needs to increase significantly if the world plans to meet Net Zero targets by 2050 and this isn’t necessarily about new investment, it is more about redeploying capital. According to research done by BNY Mellon Investment Management and Fathom Consulting, $100 trillion of green investment is needed to reach Net Zero targets. This equates to around one fifth of total anticipated investment over the next 30 years. “This investment is not the cost of stopping climate change – it’s about the transition away from economic activity that produces large amounts of greenhouse gas emissions.”

Their research findings have concluded that more than half of the $100 trillion is required in emerging markets, with China needing the most green investment. Countries such as India, South Korea, China and Indonesia currently use a lot of coal for electricity generation and, therefore, they require a larger share of green investment. The researchers stipulate that each dollar invested in an emerging market may achieve more decarbonisation than the equivalent in an advanced economy.

According to Brian Davidson, Head of Climate Economics at Fathom Consulting, “while most of the heavy lifting will be done by the private sector, policymakers have a vital role to play in overseeing transaction: setting clever and reliable policy can encourage private sector investment.” In order for us as a global population to achieve our climate goals, we have to act as quickly as possible as the longer the transition is delayed the larger the amount of spending needed will be.