According to climate campaigners, BlackRock CEO Larry Fink did not go far enough in his desire to shift away from the oil and gas industries in his most recent annual letter, which termed the need to decarbonize the global economy the largest investment opportunity of this generation. Fink believes that the worldwide infrastructures of existing fossil fuel firms are required to build a bridge to a decarbonized future.
With different areas of the global economy advancing at different speeds, the transition to net zero is already unequal. It is not going to happen overnight. We’ll need to transition from brown to green tones. Traditional fossil fuels, like as natural gas, will play a vital role in ensuring the continuity of inexpensive energy supplies during the transition, both for power generation and heating in some locations, as well as for hydrogen synthesis.
BlackRock, which announced on Friday that its assets under management had reached $10 trillion, does not have a policy of divesting from fossil fuels. Fink stated that while some of BlackRock clients withdraw totally from oil and gas interests, others do not. On CNBC’s “Squawk Box,” he responded to a question from host Andrew Ross Sorkin by saying that the world is now reliant on hydrocarbons such as oil and gas, and that “we need to fast admit it.”
Any proposal that concentrates entirely on reducing supply while ignoring demand for hydrocarbons would raise energy prices for those who can least afford it, increasing divisiveness and undoing progress on climate change. However, other climate activists disagree that greenhouse gas-emitting energy sources should be included in the discussion.