BlackRock Explores Risk Models to Boost Emerging-Markets Finance

BlackRock Inc. is exploring ways to attract more capital to emerging markets, where efforts to finance the transition to a low-carbon economy have so far been slowed by perceptions of risk.

Clients are “holding back from allocating to emerging markets because of both perceived and actual risks around currency convertibility, sovereign risk,” says Emily Woodland, APAC head of sustainable and transition solutions at BlackRock.

“The energy transition is complex, even more so in EM and APAC, and actually only about 11% of the infrastructure spend in the last five years has gone into emerging markets, including Asia,” she said ...