Our Privacy Statment & Cookie Policy
All LSEG websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.
In a recent joint study with BNY Mellon Investment Management, Fathom concluded that $100 trillion of investment in non-polluting fixed assets would be needed to reach net zero by 2050[1] — an apparently colossal figure, but one that is perhaps a lot more attainable than the headline might suggest, for two key reasons. First, while the number may sound large, global investment (formerly termed gross fixed capital formation) already equates to around $20 trillion per year, as the chart below indicates, and is likely to continue growing with time. Indeed, the $100 trillion required between now and 2050 represents less than 20% of the total investment needed across the global economy over that period, and to around just 3% of cumulative GDP. Second, a large portion of this will be used to replace existing ‘dirty’ capital with ‘clean’ infrastructure when that capital reaches the end of its useful economic life. In other words, most of this investment would be needed anyway even in a world where we do not attempt to transition to net zero.
Refresh this chart in your browser | Edit the chart in Datastream
Click here for more on the Fathom and BNYM report on the world’s green investment needs
[1], It should be noted that this is not the cost of preventing climate change. Rather, it is the sum of investment in non-polluting fixed assets.
The views expressed in this article are the views of the author, not necessarily those of Refinitiv Lipper or LSEG.
Join a growing community of asset managers and stay up to date with the latest research from Refinitiv and partners to help you inform your investment decisions. Follow our Asset Management LinkedIn showcase page.
_________________________________________________________________
Financial time series database which allows you to identify and examine trends, generate and test ideas and develop view points on the market.
Refinitiv offers the world’s most comprehensive historical database for numerical macroeconomic and cross-asset financial data which started in the 1950s and has grown into an indispensable resource for financial professionals. Find out more.
To date, 157 of the 194 companies in our Retail/Restaurant Index have reported their EPS ...
To date, 151 of the 194 companies in our Retail/Restaurant Index have reported their EPS ...
To date, 143 of the 194 companies in our Retail/Restaurant Index have reported their EPS ...
Germany is set to hold snap elections on 23 February 2025, in an effort to establish a ...