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BlackRock CEO calls for stronger climate finance plan at G20 meet

Stock MarketsJul 11, 2021 04:50PM ET
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© Reuters. FILE PHOTO: Larry Fink, Chief Executive Officer of BlackRock, stands at the Bloomberg Global Business forum in New York, U.S., September 26, 2018. REUTERS/Shannon Stapleton/

By Simon Jessop and Gavin Jones

VENICE (Reuters) - BlackRock (NYSE:BLK) Chief Executive Larry Fink on Sunday called for governments to develop a stronger long-term climate finance plan to unlock the private capital needed to fund the transition to a low-carbon economy.

Speaking to The Venice International Conference on Climate at a meeting of G20 Finance Ministers, he said without such a plan, current efforts, including on corporate sustainability disclosures, risked being "nothing more than window dressing".

Fink, who heads the world's biggest asset manager, with around $9 trillion in assets, also called for reform of the International Monetary Fund and the World Bank to make them more suited to tackle the challenge of climate change.

Fink, highlighted three "critical" issues needed to power the ecological transition, which he said represented a $50 trillion opportunity for investors. BlackRock itself is a major investor in fossil fuels.

Firstly, he said private companies needed to be under the same pressure to share information on their sustainability efforts as public companies.

Currently, listed oil and gas companies had a "massive incentive" to sell out of more polluting assets, often to private and state-owned companies on which there is less scrutiny and which disclose far less about their operations.

Secondly, Fink said governments risked fuelling inequality unless they created more demand for greener products and services, lowering the cost, or 'green premium', that penalises the worse off and could fuel social instability.

Lastly, global institutions such as the World Bank and the IMF needed to be changed so they could do more to encourage private sector capital to help fund the transition in emerging markets.

He noted that the two bodies were created nearly 80 years ago based on a bank balance sheet model and said it was now necessary to "rethink their roles."

Citing BlackRock's role in the creation of a $250 million public-private climate finance strategy to help fund sustainable infrastructure, in which government and philanthropic investors provide subordinated capital to protect the returns of private investors, he said more of the same was needed.

"If we don't have international institutions providing that kind of first-loss position at a greater scale than they do today, properly overseeing these investments, and bringing down the cost of financing and the cost of equity, we're just not going to be able to attract the private capital necessary for the energy transition in the emerging markets," he said.

BlackRock CEO calls for stronger climate finance plan at G20 meet
 

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Comments (11)
Pat Mathieu
Pat Mathieu Jul 12, 2021 9:25AM ET
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It's not Climate Change it's OVERPOPULATION, a word that has been banned by the PC hypocrites.
palmer gossett
palmer gossett Jul 11, 2021 8:30PM ET
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Good to see most on here are on the same page
Options Trader
Options Trader Jul 11, 2021 6:48PM ET
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Seriously...when have ultra rich people cared about the peasants or anything besides themselves. Name one.
Pat Mathieu
Pat Mathieu Jul 11, 2021 6:48PM ET
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Donald Trump, easy
Martin Lewis
Martin Lewis Jul 11, 2021 6:41PM ET
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Government printer goes burrrr, your dollars is worth less so their fortunes are worth more. And MSM - being the DNC-mo.uthpiece that it is - is out there trying to gaslight hyper-inflation that is the cause of massive cost of living increases. In California, the most left state in the US, has cost of living price increases in some areas over 85% higher than the national average. You would not need massive wage increases if the government was not rapidly devaluating currency, which is a tax primarily on the lower/middle class. The USD has lost over 50% of its value just since 1990. The average US household is paying more this year and gas and rise of cost of goods than their entire "relief check" from last year that they and their children will be paying back, with interest.
Martin Lewis
Martin Lewis Jul 11, 2021 6:34PM ET
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The same company that is buying up all the properties that landlords are having to default on due to the government corruptly preventing landlords from evicting people who are not paying rent? That is like Bill Gates buying up all the farmland and then pushing for government climate change programs that benefit the properties that he just bought. Musk does the same thing. Climate change is just a globalist grift by the ultra-rich billionaires who make more money through corrupt government policies/socialism than through free-market capitalism.
Martin Lewis
Martin Lewis Jul 11, 2021 6:34PM ET
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Musk became a billionaire before his company made a dime...that is not capitalism, that is corrupt financial markets and socialistic government programs than funded his fortunes.
Terence Williams
Terence Williams Jul 11, 2021 5:49PM ET
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Black Rock speaking virtuous themes..all to benefit who ?
Ronald Warren
Ronald Warren Jul 11, 2021 5:49PM ET
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politicians and bankers.
Chris Schmid
Chris Schmid Jul 11, 2021 5:06PM ET
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Oh poor Larry, the business with the planned 1000 Black Rock Green funds isn't going well then, not attracting buyers so Fink pretends to care about the planet but in fact just wants to fill his pockets. It's pure selling of his funds, nothing else.
Investing Man
Investing Man Jul 11, 2021 4:59PM ET
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Probably wouldnt matter with the damage china and russia do
Alex Malmstrom
Alex Malmstrom Jul 11, 2021 8:55AM ET
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Climate change aka weather.
Investing Man
Investing Man Jul 11, 2021 8:55AM ET
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You are the same type of people who thought the earth was flat
Pat Mathieu
Pat Mathieu Jul 11, 2021 8:55AM ET
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People thought the Earth was flat because the mainstream mefia of time (the Church) told them so.
Pat Mathieu
Pat Mathieu Jul 11, 2021 8:55AM ET
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*mainstream media of the time
Jo Pa
Jo Pa Jul 11, 2021 8:52AM ET
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The same people who insist there are 100 genders, and that riot to blame white people, push so hard this climate change myth...
Investing Man
Investing Man Jul 11, 2021 8:52AM ET
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Are you so bored and such a loser in your own country you have to spend sll your time on english websites? Lol.
Jouni Matero
Jouni Jul 11, 2021 8:52AM ET
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While everywhere heat records are broken and big environment catastrophies increase, icebergs are melting, sea level dramatically rising, etc there still seem to be ton of people who don't believe it.
Fred Smith
Fred Smith Jul 11, 2021 8:52AM ET
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- sorry but sea levels are not rising (thx Obama) and ocean temps are down slightly (global cooling).
Kaveh Sun
Kaveh Sun Jul 11, 2021 8:52AM ET
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Jouni Matero Antarctic ice is building up. This is how nature works: if one place too much something, the other places has to suffer. If too much rain in Asia, other places suffer less rain or drought
New Jazenevd
New Jazenevd Jul 11, 2021 8:29AM ET
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One of the most harmful people ever living on this planet. Uses other people money to promote own politics. Talk about thievery.
 
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