Mark Carney Bank governor Mark Carney stated to the BBC that banks need to respond faster to climate change. Climate change is a “tragedy on the horizon”, he said. According to Mr Carney, firms in finance need to reduce fossil fuels investment at a quicker rate. In a BBC Radio 4 Today prerecorded interview, Mr Carney stated that “I believe we are in a climate crises…action needs to be taken.” According to Mr Carney, leading pension fund analyses show that companies’ policies are compatible with a warming rate of somewhere between 3.7 and 3.8C. This is in contrast to the 1.5 degree target set out by the Paris Agreement. Nearly 4 degrees Celsius is far above what the governments and people want, Mr Carney stated. He said, “The question is not whether we’ll spend another decade doing worthwhile things, but not enough… we’ll blow through 1.5C very fast.” According to him, a question that every company and financial institution should ask is “What’s your plan?” Four to five years ago only the most reputable institutions could begin to consider these questions, as well as report on them. This disclosure [of investments in fossil fuels]. is requested by $120tn of assets and banks. He said that it is not progressing fast enough. Sea levels could rise by up to 9m, severe heatwaves and droughts are just some of the dangers associated with an increase of 4C in global temperature. Today’s political leaders must make a difference. “We cannot afford to allow this one to contain selective information, spin and misdirection… We are all committed to it.” For us to deliver we need to have a shared understanding of what is necessary. [But] It is normal for there to debates at the margin over where the state’s role ends and the market’s role,” said Mr Carney. The question is whether or not we’ll spend another decade accomplishing worthy work but not enough… We will get to the 1.5C mark quickly. The climate will stabilize at a much higher level as a result.” Andrew Bailey, who will succeed Mr Carney in March as the BoE governor, will take over Mr Carney’s position as special UN envoy for finance and climate action. This may interest you: “What’s climate change?” and “What’s global warming?”
