China needs a quarter of world’s US$100 trillion investments by 2050 to reach net zero goal: BNY Mellon
- China will need some US$25 trillion of green investments, more than any other country, due to the size of its economy and its fast pace of growth, report says
- The energy and utilities sectors face the largest climate transition challenges and therefore need most of the green investments to decarbonise
The world needs US$100 trillion in investments to decarbonise and reach net zero carbon emissions by 2050, with China requiring nearly a quarter of the green investments, according to a new report.
The US$100 trillion in green investments represents around 15 per cent of total global investment over the next 30 years, or around 3 per cent of global gross domestic product (GDP) over the same period, BNY Mellon Investment Management and Fathom Consulting said in a report released on Tuesday.
China will need US$23.8 trillion of green investments, more than any other country, due to the size of its economy and its fast pace of growth, according to the report’s authors Shamik Dhar, chief economist of BNY Mellon Investment Management, and Brian Davidson, head of climate economics at Fathom Consulting.
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China was “expected to grow faster than most economies between now and 2050 and more investment, including green investment, will be needed to support this growth,” they said.