Please ensure Javascript is enabled for purposes of website accessibility

The road to net zero


The road to net zero

In order to reach net zero targets, more than half of an estimated US$100 trillion investment will be required in emerging markets (EMs). Indeed, more investment will be needed in the BRICS (Brazil, Russia, India, China and South Africa) than in the G7, according to new research by BNY Mellon Investment Management and Fathom Consulting.

China also needs more green investment than any other country, according to the report.

There are a few reasons for this; First, the country is large and already accounts for more than 15% of global GDP. Second, it is expected to grow faster than most economies between now and 2050 and more investment, including green investment, will be needed to support this growth. Third, a higher-than-average share of electricity production in China comes from fossil fuels and the country also has an above-average CO2 intensity of GDP.

Shamik Dhar, Chief Economist, BNY Mellon Investment Management


Net Zero: The balance between the amount of greenhouse gases produced and the amount removed from the atmosphere.

Green investment: Investing activities aligned with environmentally friendly business practices and the conservation of natural resources.

G7: An inter-governmental political forum consisting of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.


All investments involve some level of risk, including loss of principal. Certain investments have specific or unique risks. Any views and opinions are those of the investment manager, unless otherwise noted and is not investment advice.

Recent market risks include pandemic risks related to COVID-19. The effects of COVID-19 have contributed to increased volatility in global markets and will likely affect certain countries, companies, industries and market sectors more dramatically than others.

This material has been provided for informational purposes only and should not be construed as tax advice, investment advice or a recommendation of any particular investment product, strategy, investment manager or account arrangement, and should not serve as a primary basis for investment decisions. Prospective investors should consult a legal, tax or financial professional in order to determine whether any investment product, strategy or service is appropriate for their particular circumstances. Views expressed are those of the author stated and do not reflect views of other managers or the firm overall. Views are current as of the date of this publication and subject to change.

This information contains projections or other forward-looking statements regarding future events, targets or expectations, and is only current as of the date indicated. There is no assurance that such events or expectations will be achieved, and actual results may be significantly different from that shown here. The information is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be and should not be interpreted as recommendations. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed.

There is no guarantee that any strategy that considers environmental, social, and governance (ESG) factors will be successful, or that any strategy will reflect the beliefs or values of any particular investor. Because ESG criteria exclude some investments, investors may not be able to take advantage of the same opportunities as investors that do not use such criteria. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.

BNY Mellon Investment Management is one of the world’s leading investment management organizations, encompassing BNY Mellon’s affiliated investment management firms and global distribution companies. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference the Corporation as a whole or its various subsidiaries generally.

While Fathom's proprietary climate data and tools were used to develop the sectoral risk framework presented in the Report, Fathom Consulting is not affiliated with BNY Mellon.

Not FDIC-Insured | No Bank Guarantee | May Lose Value

©2022 BNY Mellon Securities Corporation, distributor, 240 Greenwich St., New York, NY 10286.