Around $100 trillion of investment in lower-carbon infrastructure is needed for the world to comply with the Paris climate goals of achieving a net zero economy by 2050, according to an investor’s guide on the topic, conducted by BNY Mellon and consultancy firm Fathom, published Tuesday. 

$100 trillion equates to around a fifth of the total anticipated global investment over the next 30 years, or 3 percent of cumulative GDP.

Already Green

Switzerland, which produces 0.1 percent of the global CO2 emissions while making up for 0.8 percent of global GDP, has a comparably lower ratio of CO2 to GDP global contribution than other counties such as China and will have to pay less, the report says. 

By comparison, China will need to cover 23.4 percent of the $100 trillion, while Switzerland's contribution accounts for 0.5 percent of the overall investment amount.

The reason lies partly in the countries’ economic activities, with Switzerland having more services, higher-end and lower-carbon manufacturing for example.

Emerging Markets

A big part of these investments should go to emerging markets as each dollar of green investment in such markets could achieve more decarbonization than the equivalent amount spent in an advanced economy, the report shows.

Looking at the investment needs by sector and by country, the report highlights the hurdles involved in transitioning away from the economic activity which produces large amounts of greenhouse gas emissions.

It also identifies suppliers providing the energy and utility industries with the means of decarbonizing as those set to reap the greatest reward.

Pay Off

«Get it right and the payoff to society, and far-sighted investors, can be substantial,» the authors say.