Brendan McDermid | ReutersBlackRock estimates that the world's green energy transition will require $4 trillion annually by the mid-2030s, calling for more public-private partnerships, especially in Asia-Pacific.
The forecast comes from BlackRock's latest "Investment Institute Transition Scenario," which analyzes how the low-carbon transition is most likely to play out and its potential impact on portfolios.
The $4 trillion figure is double previous expectations of $2 trillion annually, and will require increases in both public and private sector capital, according to Michael Dennis, head of APAC Alternatives Strategy & Capital Markets at BlackRock.
Last year, $1.8 trillion was invested into projects related to the energy transition, up from $33 billion in 2004 with about $19 trillion invested to date, according to data compiled by BlackRock.
"However, while the investment has grown, there's still an $18 trillion gap to get to where we need to by 2030," he added.
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