, Columnist
Who Will Fund Clean Energy? Familiar Faces
Financing the transition to climate-friendly power is an allocation challenge, not a supply challenge.
Money.
Photographer: Brent Lewin/BloombergThis article is for subscribers only.
People who invest in the world’s energy systems often want to know how many trillions of dollars will be needed to finance renewable energy and natural gas. One way to find the answer is to look at what those who have already invested trillions of dollars want to happen as the world transitions to a lower-carbon power system and electrifies transportation.
A look at the numbers shows that the first thing they want is scale. The 10 largest institutional asset managers each manage more than $1 trillion; the largest, BlackRock Inc., manages nearly $6 trillion. Trillions of dollars of investor supply naturally need trillions of dollars of asset and company demand.