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At a G20 summit, BlackRock CEO Larry Fink called for governments to develop a stronger long-term climate finance plan to fund the transition to a low-carbon economy. Fink also called for reform of the IMF and the World Bank to make them more suited to tackle the challenge of climate change. Guarantees by the institutions could lead to huge additional investments in green technologies in emerging markets. For example, the U.S. government guarantee of mortgage insurers led to a $11 trillion market for home loans.
"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," said Larry Fink.
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