According to a report by asset management BlackRock, emerging market economies require $1 trillion in annual public and private finance to transition to a low-carbon economy in the battle against climate change.

According to a report by BlackRock, the figure is a significant rise over a United Nations objective of $100 billion per year, and emerging countries are "important" to ensuring the world succeeds in curbing global warming.

The problem is set to be a focal point of discussion during the next round of global climate talks, which will begin on October 31 in Glasgow and call for all countries to accelerate their efforts to achieve net-zero emissions by 2050.BlackRock sets record with $8.7 trillion in AUM | Pensions & Investments

According to BlackRock, public organizations would need to contribute $100 billion in grant-equivalent funding per year to meet the target finance, which could then be leveraged with further public and private sector investment.

Despite working for years to assist fund projects that would help prepare for and reduce the effects of climate change, multilateral institutions have only had "little success" in attracting private capital.

According to the report, the major obstacle to investment was the additional risk associated with investing in emerging markets, which included political, legal, regulatory, and macroeconomic risks.

To solve the problem, public investors would have to be willing to take on more risk and accept a higher risk of future losses.