Larry Fink, CEO of BlackRock Investment Company, believes that governments should prepare a stronger long-term financial plan to transform the economy into a low-carbon economy. It is said that private capital should be more involved in it.
Larry Fink has highlighted three critical areas of environmental transformation that present opportunities for investors for $ 50 trillion. Firstly, non-publicly traded companies should also be required to share information on how they contribute to sustainability. In the same way as companies whose shares are traded on the financial markets, they must inform.
Second, according to Fink, governments are helping to create an inequality in demand between green and “non-green” goods. This is through various tax reliefs or, conversely, additional taxation of less environmentally friendly products. According to Fink, this contributes to increasing social instability, because poorer consumers are penalized, for whom greener goods are too expensive.
Third, the World Bank and the International Monetary Fund are to be able to better support private capital in investing in the carbon transformation of the economy. Both institutions are said to have reconsidered their roles.