Net-zero alliance debuts at COP26 representing $130 trillion in assets

Financing to achieve net-zero goals has now reached scale, members of the Glasgow Financial Alliance for Net-Zero, said Wednesday during a session at COP26 focused on how to finance the climate transition.

The private sector-led initiative to reach net-zero emissions by 2050 now has more than 450 financial institutions representing assets of more than $130 trillion across 45 countries.

GFANZ will be co-chaired by Mark Carney, United Nations special envoy for climate ambition and solutions, and Michael Bloomberg, the former New York City mayor and global ambassador for the U.N.'s Race to Zero Campaign.

GFANZ members will work to mainstream climate-related reporting, risk management, investment and mobilization of private finance.

Speaking at the panel, BlackRock Chairman Laurence D. Fink said the $130 trillion of capital represents many opportunities but that "now the key is finding the projects, finding the ability to deploy that capital," which will be harder than traditional investments such as bonds.

It will also require a new system, Mr. Fink said.

"As a fiduciary to the owners of the capital, we have to have a better system to move that forward, where we can rapidly deploy it to the emerging markets world. There is not a system in place. And we need to find a way in developed countries without waiting four, five, six years for regulations," he said.

Mr. Fink added that putting capital to work "has to be done by a union of public and private" finance, and by focusing just on public companies and investments, "we are creating the biggest capital market arbitrage in my lifetime."