Larry Fink, CEO of BlackRock, the world’s largest investment fund manager, expects a boom in investments in infrastructure related to renewable energy and clean technologies. In a presentation to analysts on BlackRock’s first-quarter results, Fink noted that the war in Ukraine is driving a significant increase in the production of conventional energy resources in the short term, but that the conflict is also shifting attention in many parts of the world toward the development of greener, long-term energy sources. “The opportunity will be huge and will last for many years”, he said.

In his annual letter to BlackRock shareholders earlier this year, Fink noted that the next 1,000 unicorns (startups with a market value of more than US$1 billion before going public) will be companies focused on innovation and the development of clean energy. “I believe that the decarbonization of the global economy will create the greatest investment opportunities of our lifetimes,” he noted in the letter.

As of September 31, 2021, BlackRock had US$509,000 million invested in sustainable companies. The asset manager, however, continues to invest in fossil fuel companies. According to Fink, decarbonization will not happen overnight; rather, we will go through both “dark shadows” and “green shadows” in the process. “It is neither possible nor practical to turn off the natural gas tap immediately”, he noted. For Fink, any technology or policy that drives up energy costs for the world’s poorest and most vulnerable populations will only serve to fuel polarization around climate changeand would be detrimental to progress.