In order to reach net zero targets, more than half of an estimated US$100 trillion investment will be required in emerging markets (EMs). Indeed, more investment will be needed in the BRICS (Brazil, Russia, India, China and South Africa) than in the G7, according to new research by BNY Mellon Investment Management and Fathom Consulting.
China also needs more green investment than any other country, according to the report.
There are a few reasons for this; First, the country is large and already accounts for more than 15% of global GDP. Second, it is expected to grow faster than most economies between now and 2050 and more investment, including green investment, will be needed to support this growth. Third, a higher-than-average share of electricity production in China comes from fossil fuels and the country also has an above-average CO2 intensity of GDP.
Shamik Dhar, Chief Economist, BNY Mellon Investment Management
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