Reaching net zero will require $5 trillion to be invested every year for 30 years, according to a new Bank of America (BofA) report.

The total number, $150 trillion, is three times the total US Covid-19 stimulus bill for this decade, and the yearly investment required is higher than the total US tax intake.

The pricing of carbon will need to increase to $200 per tonne if investments of $5 trillion are to be made each year until 2050, according to the BofA.

BofA predicted that decarbonisation is set to push up global inflation by up to 3 per cent annually, as central bank balance sheet funding increases by $500 billion every year.

The statement comes ahead of a meeting of global leaders at the 2001 United Nations Climate Change Conference COP26, in Glasgow, Scotland at the end of this month.

Green concerns are increasingly taking the spotlight in UK banking; nearly twice as many UK financial services firms consider environmental sustainability and tackling climate change to be a top strategic priority compared to last year, according to a report from Lloyds Banking Group.

Last week, Former Bank of England Governor Mark Carney emphasised the financial sector's crucial role in the transition to a low carbon and eventually a net zero economy at Sibos 2021.

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