BlackRock CIO says stranded asset risk is 'the critical issue'

FILE PHOTO: The BlackRock logo is seen outside of its offices in New York City, U.S., October 17, 2016. REUTERS/Brendan McDermid

LONDON (Reuters) - The chief investment officer for BlackRock Alternatives Investors BLK.N said the risk some carbon-heavy assets could become "stranded" because of climate change was "the critical issue" when assessing deals.

“For investors such as myself, where we have as much carbon exposure as we have renewable exposure, it becomes the critical issue,” Jim Barry told the Green Horizon Summit on climate change and finance in London on Wednesday.

While he could look at an asset such as a pipeline today and “get comfortable” on its 15-20 year outlook because of contracts linked to the asset now, “the real question is, in seven to ten years time, when I come to sell that asset, will I have any confidence in the 15-20 year cashflows from there?”.

Reporting by Simon Jessop; editing by Matthew Green